The Group’s capital raising initiatives resulted in the Group receiving a total of US$14 831 145 capital from three strategic foreign partners in June 2013. The net amount was used to recapitalise the banking subsidiary in order to contribute to the minimum capital requirements set by the Reserve Bank of Zimbabwe…
Compliance with International Financial Reporting Standards
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The financial statements have been prepared in compliance with the provisions of the Companies Act (Chapter 24:03) and the Banking Act (Chapter 24:20).
Assessment of the Economic Environment
The Zimbabwean economy in the last two quarters of 2013 and replicated in the first quarter of 2014 has been characterised by slow economic growth primarily as a result of reduced operating margins and tight liquidity…
Commentary on Operating Results
The loss before taxation was US$3 951 865 during the period under review and this gave rise to an attributable loss of US$3 321 823. Total income for the period increased by 11% from a prior year of US$45 055 751 to US$50 135 302 which is split into interest income of US$33 181 704, fee and commission income of US$14 673 834, net foreign exchange gains of US$1 502 044 and non-interest income of US$777 720…
Statement of financial position
The Group’s total assets grew by 15% from US$226 533 682 as at 31 December 2012 to US$259 483 112 as at 31 December 2013…
The banking subsidiary’s capital adequacy ratio at 31 December 2013 calculated in accordance with the guidelines of the Reserve Bank of Zimbabwe (RBZ) was 17.28% (31 December 2012 – 15.50%)…
In view of the attributable loss position for the year and need to retain cash in the business and to strengthen the statutory capital requirements for the banking subsidiary, the Board has proposed not to declare a dividend.
CORPORATE SOCIAL INVESTMENTS
The Group is committed to playing an active role in the communities it serves. Our community investments are channeled into education, the disadvantaged, vulnerable groups, protection of the environment, wild life conservation, the arts and various sporting disciplines.
In line with our strategic thrust to offer service excellence to our valued high net worth individuals and businesses, we successfully launched the Mobile Banking, Internet Banking, Teller POS, Aptra Promote and EcoCash integration during the year under review.
OUTLOOK AND STRATEGY
The Group has since dollarisation secured lines of credit amounting to US$57 million and these have allowed the Bank to underwrite more lending business for the benefit of our clients…
Ms. L. Majonga, Mr. B. Ndachena, Mr. F. Zimuto and Mr. J. de la Fargue resigned as directors of NMBZ Holdings Limited and NMB Bank Limited with effect from 20 November 2013. Mr. L. Chinyamutangira and Mr. F. S. Mangozho resigned from the NMB Bank Limited Board with effect from 20 November 2013. Mr. B. Ndachena, Mr. F. Zimuto, Mr. L. Chinyamutangira and Mr. F. S. Mangozho remain employees of the Group. I would like to thank them all for their invaluable contribution to the respective Board over the years…
I would like to express my profound gratitude and appreciation to our valued clients, shareholders and the regulatory authorities for their unwavering support during the period under review. I would also like to thank my fellow Board members, management and staff for their steadfast commitment and dedication in the face of an increasingly difficult operating environment.
T N MUNDAWARARA
2013 Annual report