NMBZ Holdings Limited (NMBZ) has chalked up a profit before tax of more than $2,1 million this year, reversing a more than $1,8 million loss achieved during th same period previously.
Last year NMBZ Holdings Limited, led by chartered accountant, James Mushore, made a shocking loss of $1 764 256 for the year ended June 30, 2010.
For the period ended June 30, 2011 it however made a profit before tax of $2 138 132.
“This loss was because we spent a lot of money on our retrenchment programme,” James Mushore, NMBZ Chief Executive told analysts gathered in Harare for a briefing abut the results.
“I think we have done well because in Zimbabwe we still have the lowest inflation in the region right now – at less than three percent – but our retrenchment exercise affected our earnings.”
Benson Ndachena, NMBZ Chief Financial Officer told the analysts that during the first half of the year NMBZ had continued to experience a relatively stable economic environment.
“A combination of political stability and international re-engagement resulted in considerable growth in business activity in the country,” he said.
The profit before taxation was $2 729 807 during the period under review, which gave rise to an attributable profit of $2 138 132 for the period. Net interest income at NMBZ was $5 635 314.
Non-interest income amounted to $6 246 738 and this was mainly as a result of commissions and fee income ($6 246 738) which was partly offset by an unfavourable fair value adjustment on investment properties ($152 500).
Ndachena said operating expenses amounted to $8 281 016 and were driven by admistration and staff related expenditure.
“Impairment losses on loans and advances amounted to $1 346 063 for the current period,” he told the analysts.
“This is commensurate with the loans and advances which amounted to $73 131 880 at June 30, 2011.”
He said the Group’s banking subsidiary (NMB Bank Limited) capital adequacy ratio at June 30, 2011 calculated in accordance with the guidelines of the Reserve Bank of Zimbabwe (RBZ) was 13,5 percent.
In December 2011, it stood at 17,5 percent. The minimum required by the RBZ is 10 percent. “We will trry to maintain this at about 12 percent so hat we do not put unnecessary pressure on ourselves,” Ndachea said in Harare.
NMBZ is dually listed on the Zimbabwe and London Stock Exchanges, respectively.