Business / Companies
Politics in Zimbabwe are not right at the moment: NMBZ chief
31 Aug 2011 at 08:55hrs | Views
An improved set of interims from NMB with the attributable profit moving up to $2.1 million from a prior period loss of $1.7 million. The cost to income ratio improved to 78% from the prior period's 96% (excluding retrenchments). Management is targeting a 70% cost to income ratio by December 2011.
The net interest income amounted to $5.6 million (H1 2010: $2.3 million), whilst the non-interest income stood at $6.2 million from $3.7 million. The non-interest income was supported by net commission and fee income of $6.2 million up from $4.3 million. The new leasing business (ACL) is now profitable, in less than 8 months into operation. As at 30 June 2011, the lease book was $5.9m (currently at $7 million).
The bank continues to look for credit lines for the unit. Impairment losses on loans and advances amounted to $1.3 million from $345,509, indicating an impairment on loans/loans and advances ratio of 1.41% down from 1.83%.
The loan to deposit ratio grew from 78% to 93%, whilst the liquidity ratio worsened to 26.5% from the prior period's 41.9%. Gross NPLs/ Loans and advances stood at 6.54% from 0.79%. Management reported that they can recover about 3% of the NPL. The group has $12 million lines of credit and is currently drawing down $5 million on the ZETREF credit line and finalising the legal documentation for a $10 million approved facility.
Imara Stockbrokers advised their clients that on the back of the improving performance, we recommend investors Accumulate.
NMBZ Holdings Limited Chief James Mushore also revealed that his company is seeking a $10 million loan to help re-ignite Zimbabwe's economy.
"The politics in Zimbabwe are not right at the moment and most of our efforts trying to secure loans from investors are affected because we are not clear. Investors strive on certainty which is not the case at the moment in Zimbabwe" said Mushore.
Mushore said that the agriculture, mining and manufacturing sectors needed more investment so that the economy ticks again.
Mushore said NMBZ had "done well" this year save for the "expensive retrenchment programme that it had carried out last year".
NMBZ splashed more than $2,1 million retrenching staff last year.
The move came at a time when the financial services sector was faced with numerous problems including too much staff on their payroll.
He said delays in rewriting the Constitution of Zimbabwe, as well as the problems facing the Reserve Bank of Zimbabwe (RBZ) were all causing mayhem in the financial services sector.
The net interest income amounted to $5.6 million (H1 2010: $2.3 million), whilst the non-interest income stood at $6.2 million from $3.7 million. The non-interest income was supported by net commission and fee income of $6.2 million up from $4.3 million. The new leasing business (ACL) is now profitable, in less than 8 months into operation. As at 30 June 2011, the lease book was $5.9m (currently at $7 million).
The bank continues to look for credit lines for the unit. Impairment losses on loans and advances amounted to $1.3 million from $345,509, indicating an impairment on loans/loans and advances ratio of 1.41% down from 1.83%.
The loan to deposit ratio grew from 78% to 93%, whilst the liquidity ratio worsened to 26.5% from the prior period's 41.9%. Gross NPLs/ Loans and advances stood at 6.54% from 0.79%. Management reported that they can recover about 3% of the NPL. The group has $12 million lines of credit and is currently drawing down $5 million on the ZETREF credit line and finalising the legal documentation for a $10 million approved facility.
Imara Stockbrokers advised their clients that on the back of the improving performance, we recommend investors Accumulate.
NMBZ Holdings Limited Chief James Mushore also revealed that his company is seeking a $10 million loan to help re-ignite Zimbabwe's economy.
Mushore said that the agriculture, mining and manufacturing sectors needed more investment so that the economy ticks again.
Mushore said NMBZ had "done well" this year save for the "expensive retrenchment programme that it had carried out last year".
NMBZ splashed more than $2,1 million retrenching staff last year.
The move came at a time when the financial services sector was faced with numerous problems including too much staff on their payroll.
He said delays in rewriting the Constitution of Zimbabwe, as well as the problems facing the Reserve Bank of Zimbabwe (RBZ) were all causing mayhem in the financial services sector.
Source - Byo24News
