NMB loans out over $20 million

Property Reporter —
NMB loaned out over $20 million through its mortgage book for the half year ended June 30, 2017, with management saying the banking institution has adequate funding to meet demand for this product line.

Responding to emailed questions, acting chief executive Gerald Gore said the bulk of the funds had been loaned out through employer assisted mortgage schemes where advances are given to employees against employer investments.

“Loans under this scheme have significantly lower interest rates.

“In addition, no initial deposit is required,” said Gore.

“We have provided mortgage facilities of more than $20 million and going forward we have set aside adequate funding for this product line for current and future demand.”

The bank is also offering home improvement loans as well as mortgages for purchase of fully built houses and commercial properties.

The funds given out as mortgage constitutes approximately 10 percent of NMBs loan book of $205 million as at June 30, 2017.

Gore said non-performing loans (NPLs) in the mortgages business are generally very low due to the availability of tangible security.

In its financials NMB reported NPLs of 10,7 percent as at June, 30, 2017 down from 11,1 percent recorded at 30 June 2016.

Of the group’s loans and advances, 42 percent were extended to individuals, 16 percent to services, 14 percent towards distribution, agriculture 13 percent and manufacturing 6 percent.