Categories: Stories

NMB returns to profitability

NMBZ Holdings has posted a $1.6 million net profit for the full year to December compared to a loss of $3.3 million reported in prior year, buoyed by cost cuts and a good loan book despite a slight decline in interest income.

The group, which is listed on the London and Zimbabwe stock exchanges, went on an aggressive campaign to keep its non-performing loans under check resulting in impairments dropping to $5 million from $16.6 million in 2013. Interest income declined to $31 million from $33 million while interest expenses also dropped to $12.6 million from $13 million.

“The improvement in the operating results was underpinned by current efforts being made by the group to contain non-performing loans, implementation of a new credit system and the repositioning of the bank in the financial services sector,” former chairman Tendai Mundawarara said in a statement accompanying the financials.

The group’s total deposits also surged to $235 million from $211 million and shareholders’ funds increased by four percent to $45 million. No dividend was declared for the period.-The Source

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Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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