NMB H1 profit drops 17 percent

NMB H1 profit drops 17 percent

HARARE, August 24 (The Source) – NMBZ Holdings, the holding company of NMB Bank on Wednesday reported a 17 percent decline in after tax profit to $2,6 million in the six months to June as income decreased by nine percent.

Total income in the half year period fell from $28 million last year to $26 million this year. The drop in income was partially cushioned by a four percent drop in operating expenses to $13, 5 million as a result of cost containment measures

Interest income was almost flat, at $17 million while fee and commission income, declined from $10, 5 million to $7, 5 million.

NMBZ chairman Benedict Chikwanha said the bank had adopted a cautious approach to lending reducing its loan book from $243,2 million to $225, 2 million.

“In view of the deteriorating operating environment, the bank went on a drive to reduce exposures on clients in vulnerable sectors while selectively issuing loans to those in strong and growth sectors, hence the decline,” he said in a statement accompanying the unaudited results.

Its non-performing loans ratio came down from 14.9 percent as at June 30 2015 to 11,1 percent as a result of aggressive collection efforts and loan disposals to ZAMCO

The bank surrendered to the Zimbabwe Asset Management Corporation (ZAMCO) loans amounting to $11,6 million.

Chikwanha said the group was in the process of drawing down a $20 million line of credit and finalising the legal documentation for an approved further $15 million facility.

Total assets decreased by seven percent from $333 million as at December 31, 2015, to $311 million as at June 30.