NMBZ expecting a good performance in 2015

NMBZ is expecting a good performance in 2015, barring a significant deterioration in the economy, NMB Chief Executive, Ben Washaya has said.
 
Washaya said the tough economic conditions continue to present the biggest challenge on the bank's business with falling consumer demand and the high rate of company closures putting pressure on borrowing customers.

Speaking on the sidelines of the AGM, Washaya said NMB's total loans and advances in the 4 months to 30 April 2015 went up by 11% and total deposits going up by 10%.

"Our total loans and advances in the 4 months to 30 April 2015 went up by 11% and total deposits have gone up by 10%.

"Our net interest income and non-interest income for the 4 months to 30 April 2015 have increased by 29% and 26% respectively compared to the same period last year. As a result, our operating income for the 4 months to 30 April 2015 at US$13.9 million has increased by 28% when compared to the same period last year. The growth in income has largely been driven by our strategic shift into the broader market segments.

"Operating expenses for the 4 months increased by 2% mainly due to the expansion in capacity as we broadened our market catchment profile."

The cost to income ratio for the 4 months ended 30 April 2015 was 65% compared to 79% recorded in the 12 months ended 31 December 2014.

Washaya said NMB will pursue controlled growth bearing in mind the NPL risk.

"The NPL ratio has reduced to 16.5% at 30 April 2015 from 17.7% at 31 December 2014 due to aggressive collections and the growth in the loan and advances book and we are confident that we will achieve our target of 15% by 30 June 2015 and 10% by 31 December 2015."