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Business Reporter
NMBZ chairman Mr Tendai Mundawarara will step down from his position after being re-elected at the group’s annual general meeting yesterday while group chief executive officer Mr James Mushore did not seek re-election raising speculation of a management shake-up at the financial institution.

Mr Mushore did not attend the AGM as he was said to have taken a medical break but his failure to seek re-election as a director casts doubt over his continued stay at the bank. He is one of the founders of NMBZ Holdings.

Despite Mundawarara having been re-elected at the AGM, he said five years is a long time at the helm of a financial institution to still be able to add value.

“Just on a personal note before I close the meeting, I would like to advise that I have the pleasure of serving this company for close to five years now. I have always believed that five years is about as long as anybody can usefully add value to an organisation. I will, during the course of the coming year, obviously with consultation with my board and the major shareholders, be stepping down from the chair,” said Mr Mundawarara.

Mr Mundawarara was re-elected following a ballot after major shareholders requested for a poll vote.

Forty votes, constituting 321 million shares, voted in favour of his re-election with two votes, representing about 4 000 shares, voting against. Two votes, representing 35 million shares or 4,55 percent of the votes, abstained. All other directors who offered themselves for re-election were re-elected.

“I would like to take this opportunity to thank you all as shareholders for the great support that you have always given to me and to the bank and to request that you continue to do so in the years going forward,” he said.

A major shareholder who controls more than 18 percent of the financial services institution, Mr Jonathan Chenevix-Trench, thanked Mr Mundawarara for burning the midnight candle for the bank.

The AGM authorised management to proceed with a share buyback at market prices.

In a trading update, the banks’ managing director Mr Benefit Washaya said the financial services institution is performing below expectations.

“Post the June 30 half-year end, the economy has continued to show signs of stagnation and this has largely been driven by the illiquid market resulting in an increasingly difficult operating environment for all economic players,” Mr Washaya said.

“The performance of the group to August 31 has been below our expectations with attributable profit below budget. The performance has been affected by tightening interest margins and the poor performance of the economy.”

The group targets to lower non-performing loans to below 15 percent from the current 20,1 percent recorded as at June 30.

In the half-year to June, the group recorded an attributable profit of $1,4 million — a significant improvement on the attributable loss of $3,3 million for the year ended December 2013.