Connect with us

Techunzipped NewsNews – Techunzipped news offers the latest Zimbabwe Technology news, Daily Technology News in Zimbabwe, news online, South Africa Technology News, technology news as well as international breaking news

NMBZ realises inflation adjusted half-year comprehensive income of $992 million


NMBZ realises inflation adjusted half-year comprehensive income of $992 million

NMBZ Holdings, NMB Bank’s holding company, realised an inflation adjusted total comprehensive income of ZWL992 251 893 in the six months to June 30 compared to ZWL703 127 345 in the same period last year.

Profit before taxation in inflation adjusted terms was ZWL844 746 155, down slightly from the ZWL852 273 012 realised in the first half of 2019.

In historical cost terms the half-year profit before tax was ZWL1 227 282 561 compared to ZWL74 452 137 in 2019.

Total comprehensive income was boosted by fair value gains on investment properties, gains in the value of land and buildings and translation gains from the bank’s net asset foreign currency position.

In his chairman’s statement accompanying the financial results, NMB chairman Ben Chikwanha said the group remained resilient despite the difficult local operating environment and the unique global circumstances occasioned by the COVID-19 pandemic, culminating in the financial results which were underpinned by its banking subsidiary’s digitalisation drive and fair value gains in the bank’s property portfolio.

“The bank’s digital strategy could not have come at a better time as it has been quite pivotal in driving business within the COVID-19 induced circumstances,” he said.

“The bank has recorded significant growth and expansion on its digital platforms and this has resulted in enhanced service delivery. Furthermore, in response to the prevailing hyperinflationary environment, the group has adopted a number of value preservation strategies in order to ensure that shareholders’ value is not eroded,” he said.

Total income adjusted for inflation amounted to ZWL1 248 545 848, down three percent from ZWL1 291 433 954 in the same period last year, mainly due to a reduction in net interest income as a result of sub-optimal market interest rates.

Net interest income was ZWL168 772 889 compared to ZWL199 426 025 in the same period last year.

Operating expenses amounted to ZWL327 844 569, down four percent from ZWL341 124 089 in the same period in 2019. The reduced costs were attributed to cost containment measures that were adopted and improved efficiencies arising out of the groups’ digital drive.

The bank’s non-performing loans ratio, which stood at 1,37 percent at the end of last year had come down to 0,81 percent as at the end of June this year.

Total assets after adjusting for inflation increased by 27 percent from ZWL5 473 819 939 as at December 31, 2019 to ZWL6 936 485 718 as at June 30, 2020, mainly due to a 47 percent increase in property and equipment, a 127 percent increase in investment properties and a six percent increase in cash and cash equivalents.

The bank maintained a sound liquidity position with a liquidity ratio of 73,9 percent, significantly above the statutory minimum of 30 percent.

The bank’s capital adequacy ratio at 39,3 percent was substantially higher than the Reserve Bank’s minimum requirement of 12 percent.

Shareholder funds and liabilities in inflation-adjusted terms increased by 54 percent from ZWL1 854 516 185 at 31 December 2019 to ZWL2 860 394 662, as a result of the total comprehensive income for the half-year.

When not expelling tech wisdom, Ngoni feeds on good stories that strike on all those emotional chords. He loves road trips, a good laugh, and interesting people.

More in FinTech

To Top