HARARE – NMB Bank Limited (NMB) profit for the six months ended June 30, 2018 increased by 155 percent to $9.1 million from $3.6 million recorded during the same period last year despite facing challenges posed by the current liquidity crisis.

In a statement accompanying the Group’s financial results, NMB chairperson, Benedict Chikwanha said the operating environment in 2018 remained challenging but the Group has successfully taken substantive measures to overcome the challenges.

“The operating environment in 2018 continued to be challenging largely due to nostro funding challenges, cash shortages, job losses and inflationary pressures,” he said.

“The group has however continued to make considerable progress towards attaining its short and medium term goals. The financial results were largely driven by the banking subsidiary’s continued expansion into the broader market segment, enhanced use of bank’s digital platforms, stricter credit underwriting standards and concerted efforts to contain non-performing loans and operating costs.”

Profit before tax was recorded at $11.8 million, a 292 percent increase from $4.8 million achieved in the same period last year.

Revenue grew by 49 percent to $28.5 million in the period under review from $19.1 million achieved during the same period last year.

NMB embarked on a successful drive to reduce non-performing loans (NPLs) which saw the NPLs ratio reduce from 10.71 percent as at June 2017 to 6.12 percent as at June 2018.

“This is largely due to aggressive collections and stricter credit underwriting standards,” reads the chairperson’s statement.

The Group recorded a net interest income of $14.6 million from $10.7 million achieved during the prior year, which is an increase of 36 percent.

Mr Chikwanha said that total assets increased by 4 percent from $422.6 million as at December 2017 to $441.6 million as June 30, 2018 due to an increase in property and equipment together with an 8 percent increase in both investment securities and loans, advances and other accounts.

“These increases were partly offset by a decrease in cash and cash equivalents of 10 percent,” he said.

Total deposits increased by 4 percent from $349 million as at December 2017 to $364.6 million as at June 30, 2018 as result of increased current account balances due to the broadening of the bank’s market segment.

Income from operations increased by 55 percent to $30 million in the period under review from $19.3 million achieved during the same period last year.

However, the bank’s digital drive and expansion into broader market segments weighed on the Group’s operating expenses which increased by 23 percent to $16.8 million in the current period from $13.6 million recorded during the prior period.

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