· Total assets up by 17%
· NPLs drop to 0.44%
· Property and equipment increase by 25%
Harare- NMB Holdings has issued an update for the year ended 31 December 2020, saying the Group’s total assets increased by 17 percent from ZWL9.3 billion up to ZWL10.9 billion mainly due to an increase in investment securities, properties and equipment investments.
During the period under review, the company recorded a 125% increase in investment securities, a 60% increase in investment properties and an increase of 25% in property and equipment.
These increases were partly offset by a 32% decrease in intangible assets and an 11% decrease in cash and cash equivalents whereas Investment securities mainly due to the acquisition of Treasury bills and Bonds.
Furthermore, the Investment properties increased to ZWL1.6 billion as of December 31, 2020, due to additions and improvements made on the Bank’s property portfolio in line with the value preservation strategies adopted by the Group to curtail the devastating effects of the prevailing hyperinflationary environment.
In a statement accompanying the financial results the Group highlighted that the bank has continued to reduce non-performing loans (NPLs),
“The bank has continued with its drive to reduce non-performing loans (NPLs) and the ratio stood at 0.44% as of 31 December 2020 this was lower than the prior-year largely due to aggressive collections and stricter credit underwriting standards,” said the Group.
Going forward, the company said it is pursuing a number of value-preservation in pursuit of the revised capitalisation levels announced by the Central Bank.
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