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*We Made $10 Million Profit In 2017, NMB Announces* *Follow Pindula on WhatsApp for daily new updates* https://whatsapp.com/channel/0029Va84dngJP21B2nWeyM3v?fp > NMBZ Holdings’ profit before taxation for the year ended 31 December 2017 was $13 017 690. Profit after tax was $9 938 826, an increase of 96 percent over last year’s after tax figure of $5 058 166. > Its banking subsidiary, NMB Bank, achieved a capital adequacy ratio of 24,26 percent. The minimum required by the Reserve Bank of Zimbabwe is 12 percent. NMB’s regulatory capital was $61 135 389, well above the minimum required regulatory capital of $25 million. > Operating expenses increased by five percent from $26 176 706 in 2016 to $27 578 347 last year, as a result of non-recurrent staff expenses. > Briefing analysts on the group’s results, NMBZ chief executive Ben Washaya attributed the increased profit to an increase in income from transactional fees and a significant reduction in impairment losses on loans and advances. > Impairment losses on loans and advances amounted to $3 853 149 compared to $8 059 726 the previous year. > He pointed out that last year was characterised by nostro funding challenges, cash shortages, company closures and job losses, which put pressure on the bank’s lending. > Interest income was adversely affected by the capping of 12 percent per annum as the maximum interest rate banks could charge borrowers in the productive sectors of the economy. > “However, it was good for the economy,” he said. > He said the positive financial results were largely driven by the bank’s broadening of its target market, migration to digital channels, stricter credit underwriting standards and concerted efforts to contain non-performing loans and operating expenditure. The bank upgraded its core banking system and other electronic channels. It launched a mobile point of sale machine (mPOS) largely targeted at the SMEs and informal sector. > Draw down on its lines of credit was limited by the need to reserve the funds for exporters, who have foreign currency generating capacity to support repayments. > Shareholders’ funds and shareholders’ liabilities stood at $65 651 843 compared to $55 600 406 in 2016. The board declared a dividend of 0,36 cents per share, Mr Washaya said. > Mr Washaya said there had been a nationwide blitz to acquire low cost accounts in order to promote financial inclusion. He said the non-performing loans ratio was 7,98 percent, compared to 10,69 percent the previous year. He expressed satisfaction that the ratio had come down to a single digit figure. He said the bank was targeting five percent by the end of 2018. > “We will continue to promote our mortgages and leasing products to assist individual customers to own or improve their homes and enable companies to retool,” he said. _If you found this article useful_ *Please support Pindula by forwarding to friends and groups*
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