NMB.zw | HY2017 financial results

By Published On: August 24th, 2017Categories: Corporate announcement, Earnings

CHAIRMAN’S STATEMENT

INTRODUCTION

The Group continued to operate in an environment characterised by nostro funding challenges, interest rate and non-funded income price controls, cash shortages, job losses, deflationary pressures and company closures. The Group has however continued to make considerable progress towards attaining its short and medium term goals. The financial results were largely driven by the banking subsidiary’s continued expansion into the broader market segment, stricter credit underwriting standards and concerted efforts to contain non-performing loans and operating costs.

The key financial highlights at 30 June 2017, which are commendable in the current harsh operating environment are:
– Shareholders’ funds stood at US$59.2 million;
– Capital adequacy ratio of 23.88% against the RBZ’s minimum requirement of 12%; and
– Liquidity ratio of 35.7% versus RBZ’s minimum requirement of 30%.

GROUP RESULTS

Financial performance

The profit before taxation was US$4 838 174 during the period under review and this gave rise to total comprehensive income of US$3 556 915. The Group achieved an earnings per share of 0.93 cents (2016 – 0.69 cents)…

Financial position

The Group’s total assets increased by 5% from US$320 984 926 as at 31 December 2016 to US$337 754 147 as at 30 June 2017 mainly due to an increase of 24% in cash and cash equivalents as well as a 26% increase in investment properties and these were partly offset by decreases in non-current assets held for sale and deferred tax assets…

Capital

The banking subsidiary’s capital adequacy ratio at 30 June 2017 calculated in accordance with the guidelines of the Reserve Bank of Zimbabwe (RBZ) was 23.88% (31 December 2016 – 23.32%). The minimum required by the RBZ is 12%. We consider the level of our capitalisation to be adequate to support our growth strategy…

DIVIDEND

In view of the need to retain cash in the business in order to fund growth initiatives as well as to strengthen the statutory capital requirements for the banking subsidiary, the Board resolved not to pay a dividend.

DIRECTORATE

There were no changes to the directorate during the period under review. The directors of both NMBZ Holdings Limited and NMB Bank Limited boards remain as follows: Mr Benedict A. Chikwanha (Board Chairman), Mr Benefit P. Washaya (Chief Executive Officer), Mr Benson Ndachena (Chief Finance Officer), Mr Charles Chikaura (Independent Non-Executive Director), Mr Erik Sandersen (Non-Executive Director), Mr James de la Fargue (Non-Executive Director), Ms Jean Maguranyanga (Independent Non-Executive Director), Mr Julius Tichelaar (Non-Executive Director) and Ms Sabinah Chitehwe (Independent Non-Executive Director).

CORPORATE SOCIAL INVESTMENTS

The Group made social investments into the country’s educational system, the disadvantaged, vulnerable groups, the arts and various sporting disciplines during the six months under review. The activities and charities supported during the year included the Zimbabwe National Paralympic Games, Tokwe Mukosi flood victims, Enactus BOOST Fellowship programme for universities, Dominican Convent School, HIFA, Birdlife Zimbabwe, St Monica Parish (Chitungwiza), as well as the Salvation Army Annual Fundraising Pro-AM golf day and many other charity golf tournaments.

OUTLOOK AND STRATEGY

The Bank will continue to accelerate the deployment of POS machines throughout the country and enhance all the e-channels for the convenience of our transacting customers. The Group will continue to broaden its target market by widening its catchment area to include segments of the mass market previously not catered for, thereby contributing to the financial inclusion agenda. The Bank will be rolling out its agency banking model in the second half of the year.

APPRECIATION

I remain sincerely grateful to our valued clients, depositors, shareholders and regulatory authorities who have continued to render their unwavering support to the Group. To my fellow board members, management and staff, I extend my heartfelt gratitude for their diligence, dedication and steadfast commitment which have culminated in the Group’s remarkable results in the face of an increasingly challenging operating environment.

B. A. CHIKWANHA
CHAIRMAN


2017 Interim financial results.pdf

NMBZ Holdings Limited (NMB.zw)

Share price: 1,700.00 ZWL cents (0.00 | 0.00% – 11/08/22)

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