Business / Companies
Robust set of results from NMBZ
29 Mar 2012 at 09:32hrs | Views
A robust set of results by NMBZH showing attributable earnings of $4.5 million, up 6.6 folds, albeit off a low base. The robust performance can be attributed to the strong funded income growth as well as cost containment following the rationalization exercise. The 73% growth in funded income was supported by a 74% jump in advances.
Funded income contribution to total income improved to 47% from 40%. The noninterest income is attributed to commission and fee income of $12 million (+23%) as well as forex earnings of US$ 1.3 million. Commission and fee income growth was propelled by strong volume growth especially ATM withdrawals and POS transactions.
The group's CIR improved to 76% from 95% the prior period. The groups assets grew by 63% to US$ 167.3m on the back of growth in deposits and advances.
Gross NPLs to total advances improved 7.5% from 8.2% while impairments as a percentage of book deteriorated to 3.5% from 1.8%, however the coverage ratio (provisions/NPLs) improved to 73% from 25%. The CAR was 14.3% against a regulatory requirement of 10%. Liquidity ratio average 35% for the period. RoaE improved to 22% from 5%.
The leasing unit was profitable and contributed US$ 0.1 million. NMBZH plans to launch another new unit this year. New product launch planned for FY 2012 to include credit card will aid transactional volume hence fee income.
Management focuses on increasing lines of credit given the firm demand for loans in the market. Management targets a CIR of 74% in FY 2012 and a loan to deposit ratio of 78%.
Funded income contribution to total income improved to 47% from 40%. The noninterest income is attributed to commission and fee income of $12 million (+23%) as well as forex earnings of US$ 1.3 million. Commission and fee income growth was propelled by strong volume growth especially ATM withdrawals and POS transactions.
The group's CIR improved to 76% from 95% the prior period. The groups assets grew by 63% to US$ 167.3m on the back of growth in deposits and advances.
Gross NPLs to total advances improved 7.5% from 8.2% while impairments as a percentage of book deteriorated to 3.5% from 1.8%, however the coverage ratio (provisions/NPLs) improved to 73% from 25%. The CAR was 14.3% against a regulatory requirement of 10%. Liquidity ratio average 35% for the period. RoaE improved to 22% from 5%.
The leasing unit was profitable and contributed US$ 0.1 million. NMBZH plans to launch another new unit this year. New product launch planned for FY 2012 to include credit card will aid transactional volume hence fee income.
Management focuses on increasing lines of credit given the firm demand for loans in the market. Management targets a CIR of 74% in FY 2012 and a loan to deposit ratio of 78%.
Source - Byo24News
