NMB sources $12m lines of credit

NMB Bank has received a line of credit for $7 million from an unnamed investor and is expecting a further $5 million in the next two months to bolster the bank’s lending capacity in line with its growing loan book.

NMB chief executive Benefit Washaya told shareholders at the company’s 20th Annual General Meeting that total loans and advances in the four months to April 30 had gone up by 11 percent while total deposits had risen by 10 percent.

“The bank has approved lines of credit of $66.5 million and we are actively sourcing for more credit lines to support the productive sectors of the economy,” said Washaya.

“We are also in discussion with 4 potential providers of credit lines with a bias towards SMEs and we hope to access the additional funding before the end of the year.”

The non-performing loans (NPLs) ratio went down to 16.5 percent from 17.7 percent at December 31 due to aggressive collections and the bank is on course to meet the target of 15 percent by mid-year and 10 percent by year-end.

Net interest income and non-interest income increased by 29 percent and 26 percent respectively compared to the same period last year, driving operating income up 28 percent to $13.9 million.

Washaya attributed the growth in income to the bank’s strategic shift into the broader market segments.

Operating expenses during the period under review increased by two percent mainly due to the expansion in capacity as the bank broadened its market catchment profile.- The Source

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