HARARE – Listed financial services group, NMB Zimbabwe (NMBZ), has secured a $5 million credit line for on-lending to the productive sector, an executive with the group said.
NMBZ chief executive Benefit Washaya (pictured) on Wednesday said the group — which last year accessed a $20 million credit line for the productive sector — was also looking at lending to the country’s growing informal sector.
“…A regional finance house approved a $5 million line of credit and the line will shortly be available for draw-down by productive sector clients including SMEs,” he said at the group’s Annual General Meeting, adding the loan had been approved two weeks ago.
Meanwhile, the group — also listed on the London Stock Exchange — recorded a marginal drop in loans and advances for the four months to April 30, 2017 to $202,3 million.
At $262,4 million, total deposits rose two percent on prior comparable period, with cheap demand deposits contributing 58 percent as operating income was down eight percent to $12,6 million on the back of stricter lending.
However, on month-on-month performance, April 2017 operating income was five percent higher than April 2016.
Operating expenses for the four months increased by two percent while cost to income ratio narrowed to 73 percent compared to 75 percent.
Washaya said the bank’s capital stood at $51,4 million and on target to reach $100 million by 2020.
The bank’s half year performance will be ahead of last year because of improved inflows from tobacco and less pressure from grain imports.
“Barring a significant deterioration in the economy, we expect 2017 to surpass the 2016 performance as we are currently operating above our budget,” said Washaya.
At the AGM, the group received shareholder approval to purchase at least 10 percent of its ordinary shares.
Shareholders also voted to amend the articles of association that deals with retirement.
The bank — which traditionally catered for high net worth individuals — recently took a decision to broaden its market segments to include small-to-medium enterprises and ordinary workers in response to changes in the global, regional and local operating environment.