- PAT increased 161% to ZWL296.4 million
- The Bank’s regulatory capital of ZWL4.1bn above prescribed minimum of ZWL25m
- Says will continue to strategically focus on the enhancement of digital channels
HARARE – NMB Holdings Limited, the holding company of NMB Bank posted a strong start to the year despite a slower economic activity experienced following the implementation of level four (4) lockdown at the beginning of the year to contain the spread of the COVID-19 virus.
The Group recorded inflation-adjusted net income for the three months ended 31 March 31, 2021, of ZWL930.8 million, a 42% increase over ZWL655.5 million recorded in the first quarter of 2020.
Net profit jumped 161% to ZWL296.4 million from ZWL113.6 million same period last year.
The results also show shareholders funds and shareholders liabilities increasing by 7% to ZWL4.9 billion during the period under review against ZWL4.6 billion in 2020.
Meanwhile, the Bank’s inflation-adjusted regulatory capital as at 31 March 2021 was ZWL$4.1 billion (8% ahead of ZWL3.8 billion in the 2020 period) and is above the minimum required regulatory capital of ZW$25 million.
“This translated to a Capital Adequacy Ratio of 31.59% as at 31 March 2021 (31 December 2020 – 39.51%) and this was significantly above the prescribed regulatory minimum ratio of 12%,” the Group said.
“All things being equal, the Bank is confident that it will achieve the required minimum regulatory capital level for Tier 1 banks of USD30 million equivalent by the set deadline of 31 December 2021.”
The Group expects momentum to continue on account of the ongoing vaccine roll-out which potentially minimises the risk of COVID-19 induced business disruptions.
“We are hopeful that the exchange rate stability achieved so far will continue to prevail in order to create a conducive operating environment for businesses and the attraction of local and international capital in order to propel the much-needed economic growth for the country,” said the Group.
in relation to the banking subsidiary, the Group said it will continue to strategically focus on the enhancement of its digital channels in order to further improve the customer experience as well as contribute to the financial inclusion agenda.
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