NMBZ Holdings recorded a threefold jump in after tax profit to $5,5 million for the year ended December last year as a decision to widen its target market and contain non-performing loans paid off. Through its principal subsidiary NMB Bank, the financial institution previously focused on high net worth clients but has since expanded its tentacles to other lower income segments.Group chief executive Ben Washaya said the group achieved the results even after writing off bad debts amounting to nearly $12 million.
“The significant improvement in operating results was largely underpinned by the bank’s decision to broaden its target market, stricter underwriting standards and concerted efforts to contain non-performing loans,” he said
During the period, the group saw its revenue surge to $43 million from $35,4 million while interest income rose marginally to $20,6 million from $18,4 million.
Despite the improved profitability, NMBZ Holdings opted not to declare a dividend to maintain a strong capital balance.
At the end of the period, NMB Bank’s capital adequacy stood at 19,26 percent ahead of the 12 percent set by the Reserve Bank of Zimbabwe.
The group’s basic earnings per share, however, improved to 1,43 cents from 0,43 cents the previous year in line with improved profitability.
In the period, group assets grew 17 percent to $334 million. — New Ziana.