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NMB profits surge

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NMB Holdings’ profit after tax surged 650% to $4,5 million for the year ended December 2011 on the back of increased interest income.

In 2010, the bank recorded a profit of $692 234.
Earnings per share rose from 0,03 cents per share to 0,16 cents last year.

Company chairman Tendai Mundawarara said net interest income stood at $11,9 million, while non-interest income was $12,1 million mainly emanating from commissions and fee income stood at $11,9 million during the period under review.

Mundawarara said operating expenses were 11% up to $16,9million from the previous year due to staff and administration costs.

“Impairments losses on loans and advances amounted to $2,2 million from $971 803 (and) this is commensurate with loans and advances which amounted to $97 138 043 at December 2011 compared to $57 913 589 at December 2010,” he said.

Total assets for the group grew by 63% to $167 287 033 from $102 839 504 last year.

Loans and advances and other accounts comprised of $99,8 million, while financial assets at fair value through profit and loss totaled $24 585 255.

The bank’s liquidity ratio closed the year under review at 35,25%.

Mundawarara said the country continued to experience a stable economic environment.
“A combination of the relative political stability and continued international re-engagement resulted in considerable growth in business activity in the country,” he said.

“The financial sector experienced intermittent liquidity constraints in the period under review and this constrained availability of credit to industry and commerce.”

The bank upgraded its core banking system to the latest version of T24.

It said the new platform provided a solid base for seamless integration with other modern service delivery channels that brought convenience to individuals and businesses.

“Going forward, the bank is looking at enhancing existing electronic delivery channels through upgrades as well as acquiring new channels in an endevour to bring more convenience to our valued clients,” Mundawarara said.

In the last quarter of last year the bank opened a new branch in Avondale, Harare.

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