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NMBZ Records Half-Year Profit Before Tax Of ZWL74,5 Million

FinTech

NMBZ Records Half-Year Profit Before Tax Of ZWL74,5 Million

NMBZ Holdings, NMB Bank’s holding company, recorded a profit before tax of ZWL74 452 137 for the half-year ended June 30, 2019, resulting in total comprehensive income of ZWL61 425 194.

This compares with a before-tax profit of ZWL11 757 594 and a total comprehensive income of ZWL9 086 483 in the same period last year.

The Group’s basic earnings per share was ZWL14,55 cents compared to ZWL2,34 cents per share for the half‑year ended 30 June 2018.

Briefing analysts today (Wednesday) on the group’s half-year results, NMBZ chief executive Ben Washaya said the basic earnings were largely driven by continued expansion into the broader market segments, revision of lending rates and charges, reduction in non-performing loans, cost containment measures, functional currency changes and fair value gains from investment properties.

He said NMB Bank had continued to open more NMBLite accounts, as its contribution to the financial inclusion agenda. It had intensified the roll-out of mPOS devices to small and medium enterprises (SMEs) and sole traders. The take-up, he said, continued to be encouraging.

He said the bank’s non-performing loans ratio had come down from 7,43 percent at the end of 2018 to 3,38 percent as at June 30 this year. He attributed this reduction to aggressive collections and stricter credit underwriting standards.

“The management of NPLs continues to be a focus area in light of the deteriorating operating environment and the increasing borrowing interest rates,” he said.

He revealed that the bank was developing a branch in Victoria Falls for the benefit of residents and tourists, which should be open for business on Monday next week.

He said construction of NMB’s new head office should be completed in the last quarter of the year.

Mr Washaya said NMB owed 14 million United States dollars in legacy debts to various line of credit providers. It had transferred the Zimbabwe dollar equivalent of these debts to the Reserve Bank. The affected credit providers had confirmed they were agreeable to the legacy debt arrangements with the Reserve Bank.

Summarising the half-year results, NMB chief finance officer Benson Ndachena said total deposits as at June 30 amounted to ZWL480 292 497, a 10 percent increase since the end of December 2018, when deposits stood at ZWL434 957 949.

The group’s total assets increased from ZWL527 067 596 at the end of December 2018 to ZWL691 641 122 as at June 30 this year.

Operating income amounted to ZWL97 438 984 in the first six months of the year compared to ZWL29 999 523 at the end of June 2018.

Operating expenses amounted to ZWL23 929 991, up 42 percent from the ZWL16 820 851 recorded in the same period last year.

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