HARARE – (FinX) – NMB Holding’s profit before tax increased by 103% to ZWL$146.1 million in the 9 months to September 30, 2019 from ZWL72 million from in the same period last year due to translation gains on forex balances, investment properties fair value gains and fee and commission income.
However, these were partly offset by the loss on net monetary position of ZWL69.3 million arising from the hyper-inflationary accounting basis adopted by the group.
The bank continued with its financial inclusion drive and this has seen the opening of a significant number of low cost accounts via its NMBLite product.
“We continued to invest in digital channels to support a cashless society and in this regard, the Bank has continued to rollout mPOS devices to SMEs and the informal sector and the take up has been quite positive, much to the convenience of the transacting public and our valued customers,” said NMBZ Holdings Limited group chief executive officer Benefit Washaya.
As the Bank’s focus remains that of increasing its customer base and transactional volumes anchored on the Bank’s digital strategy, it opened a branch in the resort town of Victoria Falls on for the convenience of the tourist town’s residents and visitors. However, the construction of the group’s new Head Office along Borrowdale Road, he said, is progressing well and the new building should be ready for occupation in the first half of 2020.
Due to the inflationary pressures in the market, operating expenses amounted to ZWL89.0 million. But, it was down 83% from the restated ZWL512.8 million in the prior period last year.
NMB recorded an expected credit loss reversal on financial assets measured at amortized cost amounting to ZWL0.6 million from a restated impairment charge of ZWL73.7 million in the comparable period last year owing to increased collection efforts on the banking subsidiary’s non-performing loans.
Total income for the group declined from ZWL1.1 million in the same period last year to ZWL328 257. The bank’s total deposits declined from ZWL1.83 million previously to ZWL604 039.
The Bank reported a basic earnings per share of 27.21 cents and a headline losses per share of 5.98 cents. The significant differential between the basic earnings per share and headline losses per share in the period under review is attributed to investment properties restated fair value gains and gains arising from the translation of foreign currency balances due to the change in functional and reporting currency from the US Dollar to the new local currency effective 22 February 2019.
In order to fund the growth initiatives being pursued by the group, the board resolved not to declare an interim dividend.