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Sunday, January 29, 2023
HomeBusinessNMB Treasury Bills and Bonds Reach $100 Million Mark

NMB Treasury Bills and Bonds Reach $100 Million Mark

Zimbabwe Stock Exchange listed NMB Holdings gross investment securities (Treasury Bills and Bonds) increased from US$92 245 425 as at 31 December 2017 to US$100 137 224 as at 30 June 2018 in line with the financial institution’s exposure limits and risk appetite.

Impairment losses on loans and advances for the half year ended June 2018 amounted to US$1 421 078 for the current period from a prior year amount of US$878 304 due to the adoption of the International Financial Reporting Standard (IFRS 9) with effect from 1 January 2018.

The profit before taxation was US$11 757 594 during the period under review and this gave rise to total comprehensive
income of US$9 086 483.

According to the group chairperson, Benedict Chikwanha, operating expenses were 23% up from a prior year amount of US$13 627
312.

“Operating expenses amounted to US$16 820 851 and these were up 23% from a prior year amount of US$13 627
312.

“This was due to increased transaction processing and operational costs arising from the bank’s digital drive and
continued expansion into the broader market segments,” he said.

Chikwanha added that the bank has continued with its drive to reduce non-performing loans (NPLs) and this saw the NPL ratio reduce from 10.71% as at 30 June 2017 to 6.12% as at 30 June 2018  due to aggressive collections and stricter credit underwriting standards.

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“Total deposits increased by 4% from US$348 956 385 as at 31 December 2017 to US$364 580 517 as at 30 June 2018 as a result of increased current account balances due to the broadening of the bank’s market segments.

“The Bank maintained a sound liquidity position with a liquidity ratio of 42.09% and this was above the statutory
minimum of 30%,” added Chikwanha.

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