INTRODUCTION
The country witnessed a leadership transition in November 2017 which ushered in a new political dispensation. This was followed by various re-engagement efforts with the international community and there has been a notable increase in interest from foreign investors raising prospects of an economic turnaround. This said, the 2017 operating environment was characterised by nostro funding challenges, cash shortages, job losses, inflationary pressures and company closures. Despite the environment, the group recorded a positive set of results, largely driven by the banking subsidiary’s decision to broaden its target market, migration to digital channels, stricter credit underwriting standards and concerted efforts to contain non-performing loans and operating expenditure…
GROUP RESULTS
Financial performance
The profit before taxation was US$13 017 690 (2016 – US$6 208 904) during the period under review and this gave rise to total comprehensive income of US$10 029 136 (2016 – US$5 055 196). The Group achieved a basic earnings per share of 2.58 cents (2016 – 1.32 cents)…
Financial position
The Group’s total assets increased by 32% from US$320 984 926 as at 31 December 2016 to US$422 564 352 as at 31 December 2017 mainly due to a 273% increase in investment securities, an increase of 29% in cash and cash equivalents and a 34% increase in investment properties…
DIVIDEND
In light of the improved financial performance recorded in the year under review, the need to utilise retained earnings in the holding company and limit the utilization of retained earnings in the banking subsidiary, the Board has proposed a scrip dividend alternative to the cash dividend of 0.36 cents per share. The scrip dividend option was arrived at taking into account shareholders’ expectations and value preservation and the need to ensure sustainable organic growth in view of the banking subsidiary’s regulatory capitalization requirements.
DIRECTORATE
There were no changes to the directorate during the period under review. The directors of both NMBZ Holdings Limited and NMB Bank Limited boards remain as follows: Mr Benedict A. Chikwanha (Board Chairman), Mr Benefit P. Washaya (Chief Executive Officer), Mr Benson Ndachena (Chief Finance Officer), Mr Charles Chikaura (Independent Non-Executive Director), Mr Erik Sandersen (Non-Executive Director), Mr James de la Fargue (Non-Executive Director), Ms Jean Maguranyanga (Independent Non-Executive Director), Mr Julius Tichelaar (Non-Executive Director) and Ms Sabinah Chitehwe (Independent NonExecutive Director).
OUTLOOK AND STRATEGY
The efforts to broaden the target market have continued to be accelerated with a nationwide blitz to acquire low cost accounts in an effort to promote the national financial inclusion agenda. The Bank also launched the Life and retirement products which are underwritten by Old Mutual. We will continue to promote our mortgages and leasing products as we assist our customers to own homes and for companies to retool. The bank will continue to leverage on its strong shareholder base to access the best technology platforms to accelerate our digital strategy and drive responsible inclusive growth and financial inclusion in Zimbabwe…
APPRECIATION
My utmost appreciation goes to our clients, shareholders and regulatory authorities for their unwavering support in the period under review. I would also like to thank my fellow Board members, management and staff for their profound commitment, dedication and passion which have underpinned the achievement of the Group’s notable results.
MR. B. A. CHIKWANHA
CHAIRMAN
