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NMBZ Holdings net income for the six months to June rose 4 percent to US$2,7 million from the previous year driven by significant growth in funded income, the group bank said last Friday.
Earnings growth was moderate despite a 29 percent increase in total income. Provisions surged 2,7 times year on year due to the tight liquidity conditions and low capacity utilisation in industry.
Funded income rose 40 percent, driven by a 39 percent growth in advances.
Funded income contribution to total income improved to 51 percent from 47 percent. Non-funded income attributed to commission and fee income rose 16 percent to US$6,6 million.
Commission and fee income growth was anchored by increased transactional volumes as new products were launched.
The cost to income ratio deteriorated to 81 percent from 78 percent on increased provisions as well as higher depreciation costs. Nonetheless, pre-provision cost income to ratio improved to 70 percent from 73 percent.
The balance sheet grew 61 percent from year end to US$364,8 million on the back of a 13 percent and 21 percent growth in deposits and advances, respectively as well as the US$14,8 million capital injection through a private placement.
Return on average equity declined to 14 percent from 28 percent mainly as a result of the new capital which was received in June 2013.
Impairments as a percentage of total book deteriorated to 4,6 percent from 2,7 percent at the year end. The liquidity ratio averaged 41 percent against a regulatory requirement of 30 percent.
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