Munashe Matambo Business Reporter
NMB Bank Zimbabwe operating income rose 53 percent to $19,2 million for the four months to April 30, 2018 driven by growth in interest and non-interest income. Chief executive Benefit Washaya told shareholders at an annual general meeting that the bank’s net interest income and non-interest income for the period rose 30 percent and 83 respectively compared to the same period last year.
The increase in net-interest income was driven by an 18 percent jump in interest income and a 13 percent reduction in interest expense.
“The 83 percent increase in non-interest income resulted largely from increased transactional revenues due to the increase in the number of accounts and the migration of transactional activity to the digital platforms,” said Mr Washaya.
NMB has been deploying more point of sale (POS) machines in the market in order to provide transactional convenience to customers and it is also distributing cheaper POS to informal traders and SMEs in order to improve market penetration. Mr Washaya also told The Herald Business that the bank was confident of achieving a non performing loan (NPL) ratio of 5 percent by December 31, this year.
At close of the four months under review, NPL ratio reduced to 6,62 percent from 12,82 percent during the same period last year on aggressive collections.
Operating expenses increased by 14 percent mainly due to IT related costs.
Bad and doubtful debts charge for the period under review was 48 percent below the same period last year due to increased collections, less NPL downgrades in the period on generally cleaner book.
Management anticipates better performance this year on improved efficiencies. The bank completed upgrading its core banking system in February resulting in a significant improvement in processing capacity of systems which has enhanced customer’s experience.
The bank also opened the Bindura Service Centre in May 2018 which will serve the Mashonaland Central Region where the bank was not represented.