NMBZ posts $1,4m profit

Business Reporter
NMBZ Holdings recorded attributable profit of about $1,4 million, but total income decreased by about seven percent as operating expenses shot up in the six months to June.
The bank attributed the recovery from attributable loss of $3 321 823 for the year ended December 31 2013 to efforts made in containing non-performing loans.

Total income for the six months retreated by 7,23 percent to $23 million from a prior period of $25 million. The total income is split into interest income of $15 million during the period under review from $16,1 in 2013 and commission income of $7 million from $7,5 million in 2013, net foreign exchange gains of $945 309 (2013-$866 453) and non-interest income of $509 579 from $561 729 in 2013.

Operating expenses raced by 2,5 percent to $13,4 million, driven largely by staff costs, depreciation of property and equipment and amortisation of intangible assets, NMBZ said. The bank said total deposits increased by 1,22 percent to $213 795 232 in the period to June from $211 215 066 as at December 31 2013. NMBZ did not declare a dividend, citing the need to retain cash in the business and to strengthen the statutory capital requirements for the banking subsidiary.

The distribution of the non-performing loans shows that the manufacturing sector accounted for 36 percent, followed by distribution at 21 percent, services at 18 percent, while personal lending accounted for 9 percent in the year to December 31 2013.

The bank is implementing a credit management system as a measure to control non-performing loans. In the 2013 financial results, the banking group said that a return to profitability will be premised on mortgage lending and bancassurance.