NMBZ half-year profit rises

Funded income contribution to total income improved to 48 percent from 46 percent in the same period last year.
Non-interest income from commission and fees was up 5 percent to US$6,6 million.
Commission and fee income growth was driven by strong deposit growth, which rose 46,2 percent.
The cost income ratio deteriorated slightly to 77 percent from 76 percent pressured by administration and staff costs due to increased capacity utilisation in the branches.
Administration and staff costs contributed 46 percent and 43 percent of total operating expenses, respectively.
The group’s assets grew by 7,l percent from year end to US$180,5 million on the back of a 7,7 percent and 6,9 percent growth in deposits and advances, respectively.
Impairments as a percentage of total loan book deteriorated to 3,2 percent from 2,5 percent.
The capital adequacy ration was 13 percent against a regulatory requirement of 12 percent.
The loan to deposit ratio improved to 85 percent from 94 percent. NMBZ said it will focus on increasing lines of credit given the firm demand for loans in the market.
With regards to new minimum capital requirements for banks, NMBZ said it has a medium term business strategic plan which demonstrates compliance with the new thresholds. The plan will be submitted to the central bank before end of this month.
The central bank announced in June that minimum capital for commercial banks has been raised from US$12,5 million to US$25 million by December 21 this year, US$50 million and US$75 million by June and December next year and US$100 million by June 2014. The RBZ also increased the minimum capital adequacy ration from 10 percent to 12 percent with effect from August 1 this year.