NMB doubles FY profits

Mike Tome

HARARE – NMB Holdings posted a 109 percent jump in profit before tax to US$27, 1 million for the year up to 31 December 2018 from US$13 million recorded in the prior year.

In the period under review, the bank’s net interest income grew by US$7, 6 million to US$30, 5 million a 33 percent improvement from US$23 million recorded in December 2017.

Total comprehensive income grew 112 percent to US$21, 3 from US$10 029 in the same period last year.

NMB’s buoyant performance come on the back of an US$86 million surge in total deposits to US$435 million from US$349 million.

The group’s total assets improved by 25 percent to US$527 from US$423 million as at December 2017. Property and equipment investments grew by 143 percent as investment securities increased by 27 percent.

Non-performing loans slackened to 7, 43 percent compared to 7, 98 percent recorded in 2017 which the bank attributed to aggressive collections and stricter credit underwriting standards.

The bank however had a 26 percent increase in operating expenses to US$34, 7 million from US$27, 5 million which has been attributed to the digital drive currently taking shape at the institution as the capital adequacy ratio plummeted by one percent.

“Increase in operating expenses was due to increased transaction processing and operational costs arising from the bank’s digital drive and general inflationary pressures largely driven by foreign currency shortages.

“The bank’s capital adequacy ratio stood at 23, 25 percent as at December 2018 compared to 24, 26 percent realised December 2017 which is well above the statutory minimum of 12 percent.

Our capitalisation level is adequate to cover all risks and supports the underwriting of new business,” said Mr Ndachena, NMB’s chief finance officer.

The bank is continues to intensify its efforts in rolling out point of sale devices (m-POS) in order to support the growing SME’S and sole trader clientele base.

Likewise NMB is enhancing its efforts to open low cost accounts as it furthers investment towards digital channels to promote service delivery to accommodate increased transactional volumes created by the broadened customer base.

Basic earnings per share to 5, 43cents from 2, 58 cents a 22 percent increase from last year.