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Enacy Mapakame
Banking firm NMBZ Holdings Limited reported a 103 percent jump in profit before tax to $146 million for the nine months to September 30, 2019, compared to $72 million in the same period last year.
This resulted in total comprehensive income doubling to $109 million.
Group chief executive Benefit Washaya attributed the growth to translation gains on foreign currency balances, investment properties fair value gains and fee and commission income.
These were partly offset by the loss on net monetary position arising from the hyper-inflationary accounting basis adopted by the Group
Basic earnings per share rose 107 percent to 27,21 cents from 13,88 cents during the same period last year.
The bank however recorded a headline loss per share of 5,98 cents.
The banking group indicated that the significant differential between the basic earnings per share and headline losses per share for period was largely due to investment properties restated fair value gains ($47,1 million) and gains arising from the translation of foreign currency balances ($128,3 million) due to the change in functional and reporting currency from the United States Dollar (USD) to the new local currency.
During the period under review, operating expenses amounted to $89 million, down 83 percent from the restated $512,8 million in the comparable prior year period.
Total assets went down 42 percent to $1 billion from the restated $1,7 billion as at 31 December 2018 mainly due to a 60 percent decrease in loans, advances and other assets, a 77 percent decrease in intangible assets and an 81 percent decrease in investment securities.
These were partly offset by an increase of 154 percent in property and equipment and a 57 percent increase in investment properties.
Gross loans and advances decreased by 60 percent to $259,6 million from the restated $857,8 million as at 31 December 2018 due to loan repayments as well as a slowdown in advances during the period under review in view of the prevailing economic conditions.
By close of period, NPL ratio had improved to 3,41 percent from 7,43 percent as at December 30, 2018 due to aggressive collections and stricter credit underwriting standards.
NMBZ is maintaining its focus on increasing its customer base as well as transactional volumes anchored on digital banking initiatives.
In line with this, the bank also continued to invest in digital platforms while also working on enhancing financial inclusion through opening of low cost accounts.
“We continued to invest in digital channels to support a cashless society and in this regard, the Bank has continued to rollout mPOS devices to SMEs and the informal sector and the take up has been quite positive, much to the convenience of the transacting public and our valued customers,” said Mr Washaya.
During the period under review, the Bank opened a branch in the resort town of Victoria Falls on September 9, 2019 for the convenience of the tourist town’s residents and visitors.
Meanwhile, the construction of the new head office along Borrowdale Road is progressing well and group anticipates the new building should be complete in the first half of 2020.
Online Reporter