NMBZ Holdings posted an attributable profit of $1,6 million in the full year to December 31 2014 from a loss position in 2013 after containing non-performing loans and implementing a new credit system In the same period last year, the group posted a loss of $3 321 823.
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“The improvement in the operating results was underpinned by the 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 group’s financial results.
Mundawarara resigned as NMBZ board chairman last week and was replaced by veteran banker Ben Chikwanha. Total income for the period was down 4% at $48 078 454.
Operating expenses were up 11% to $27 984 051 largely driven by administration expenses, depreciation and staff related expenditure.
Impairment losses on loans and advances amounted to $5 017 362 during the period under review down from $16 645 810 attributed to reduced write-offs in the current year.
“The board took a decision to write off loans and advances amounting to $5 912 371 during the year under review after recovery efforts had not yielded the anticipated results,” the group said.
Total assets grew by 10% to $286 049 034 from the previous year due to an increase in loans and advances , investment in debentures and cash and short term funds which all registered growth in 2014.
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Gross loans and advances grew by 12% in 2014 to $217 463 319 from $194 777 798 attributed to increase in loans and advances to civil servants. Civil servants are creditworthy due to the consistency by government in paying salaries.
The group said it had broadened the market catchment segment for the banking subsidiary by tapping into the mass market. The banking unit had prided itself as target the high net worth individuals and the shift to the mass market is an aggressive approach to survive in the tough economic environment.
NMB Bank Limited had a capital base of $45 157 334 in 2014 up from $39 457 845 in 2013.
