TIDMNMB
RNS Number : 8075M
NMBZ Holdings Ld
30 August 2013
NMBZ HOLDINGS LIMITED
Holding company of
NMB BANK LIMITED (Registered Commercial Bank)
CONDENSED RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2013
HIGHLIGHTS
30 June 31 December 30 June
--------------------------- ------------ ------------ ------------
2013 2012 2012
--------------------------- ------------ ------------ ------------
Reviewed Audited Reviewed
--------------------------- ------------ ------------ ------------
Attributable profit (US$) 2 672 911 7 570 502 2 564 350
--------------------------- ------------ ------------ ------------
Basic earnings per share
(US cents) 0.95 2.69 0.91
--------------------------- ------------ ------------ ------------
Total deposits (US$) 210 673 789 191 422 066 149 889 217
--------------------------- ------------ ------------ ------------
Loans and advances (US$) 183 454 912 152 417 375 127 870 654
--------------------------- ------------ ------------ ------------
Total Equity (US$) 47 950 247 30 942 083 25 935 931
--------------------------- ------------ ------------ ------------
Enquiries:
NMBZ HOLDINGS LIMITED Tel: +263-4-759 651/9
James A Mushore, Group Chief Executive Officer, NMBZ Holdings
Limited jamesm@nmbz.co.zw
Francis Zimuto, Deputy Group Chief Executive Officer, NMBZ
Holdings Limited francis@nmbz.co.zw
Benefit P Washaya, Managing Director, NMB Bank Limited
benefitw@nmbz.co.zw
Benson Ndachena, Chief Financial Officer, NMBZ Holdings Limited
bensonn@nmbz.co.zw
Website: http://www.nmbz.co.zw
Email: enquiries@nmbz.co.zw
CHAIRMAN'S STATEMENT
INTRODUCTION
These results were achieved under a relatively subdued economic
and operating environment which was characterised by an illiquid
market and a general tightening in the economy in light of the
national elections set for 31 July 2013. The banking sector
performance was adversely affected by the Memorandum of
Understanding (MOU) on interest rates and bank charges.
GROUP RESULTS
Compliance with International Financial Reporting Standards
The condensed consolidated interim financial statements have
been prepared in accordance with International Financial Reporting
Standards (IFRS). The condensed financial statements have been
prepared in accordance with IAS 34, Interim Financial
Reporting.
Commentary on operating results
The profit before taxation was US$3 812 214 during the period
under review and this gave rise to an attributable profit of US$2
672 911. Net interest income was US$9 488 623 for the period.
Non-interest income amounted to US$8 152 494 and this was mainly as
a result of commissions and fee income which amounted to US$7 590
765.
Operating expenses amounted to US$13 025 587 and these were
driven largely by administration and staff related expenditure.
Impairment losses on loans and advances amounted to US$1 887 537
for the current period from a prior year amount of US$688 020 and
the increase was mainly due to the liquidity and market challenges
being faced by businesses.
Dividend
In view of the need to retain cash in the business and to
strengthen the statutory capital requirements for the banking
subsidiary, the Board has proposed not to declare a dividend.
Statement of financial position
The Group's total assets grew by 17% from US$226 533 682 as at
31 December 2012 to US$264 784 407 as at 30 June 2013. The assets
comprised mainly loans, advances and other accounts (US$177 740
224), non-current assets held for sale (US$2 216 500), investment
securities held to maturity (US$5 578 070), investments in
debentures (US$3 984 723), cash and short term funds (US$61 029
068), investment properties (US$3 020 300) and property and
equipment (US$8 483 963).
Gross loans and advances increased by 20% from US$152 417 375 as
at 31 December 2012 to US$183 454 912 as at 30 June 2013.
Total deposits increased by 10% from US$191 422 066 as at 31
December 2012 to US$210 673 789 as at 30 June 2013 in the midst of
a declining market deposit base.
The Bank's liquidity ratio closed the period at 40.76% and this
was above the statutory requirement of 30%.
Capital
The banking subsidiary's capital adequacy ratio at 30 June 2013
calculated in accordance with the guidelines of the Reserve Bank of
Zimbabwe (RBZ) was 18.39% (31 December 2012 - 15.50%). The minimum
required by the RBZ is 12%.
The Group's equity increased by 55% from US$30 942 083 as at 31
December 2012 to US$47 950 247 as at 30 June 2013 as a result of an
increase in retained earnings and US$14.8 million capital injected
through a private placement by three strategic foreign
investors.
OUTLOOK AND STRATEGY
We eagerly wait to see whether the economic environment will now
become more certain and predictable post the recent harmonised
elections, whatever the case, the Group will continue to scout for
more international lines of credit. The Group will also explore
growth opportunities in other market segments.
APPRECIATION
I would like to pay tribute to our valued clients, shareholders
and regulatory authorities for their continued support in the
period under review. I would also like to thank my fellow board
members, management and staff for their profound commitment and
dedication which has made the achievement of these results possible
in the face of a subdued economic environment.
T N MUNDAWARARA
CHAIRMAN
21 August 2013
INDEPENDENT REVIEW BY THE AUDITORS
These interim condensed consolidated financial statements for
the six months ended 30 June 2013 have been reviewed by the
company's auditor, KPMG Chartered Accountants (Zimbabwe). In their
review report dated 21 August 2013, which is available for
inspection at the company's registered office, KPMG Chartered
Accountants (Zimbabwe) state that their review was conducted in
accordance with the International Standard on Review Engagements
2410, Review of interim information performed by the independent
auditor of the entity, and have expressed an unmodified conclusion
on the interim condensed consolidated financial statements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2013
Note 30 June 2013 30 June 2012
---------------------------- ----- -------------- -------------
US$ US$
---------------------------- ----- -------------- -------------
Reviewed Reviewed
---------------------------- ----- -------------- -------------
Interest income 4 16 099 196 11 658 274
---------------------------- ----- -------------- -------------
Interest expense (6 610 573) (4 854 771)
---------------------------- ----- -------------- -------------
---------- ----------
---------------------------- ----- -------------- -------------
Net interest income 9 488 623 6 803 503
---------------------------- ----- -------------- -------------
Net foreign exchange
gains 866 453 905 133
---------------------------- ----- -------------- -------------
Non-interest income 5 8 152 494 6 685 240
---------------------------- ----- -------------- -------------
---------- -----------
---------------------------- ----- -------------- -------------
Net operating income 18 507 570 14 393 876
---------------------------- ----- -------------- -------------
Operating expenditure 6 (13 025 587) (10 490 395)
---------------------------- ----- -------------- -------------
Impairment losses on
loans, advances and
debentures (1 887 537) (688 020)
---------------------------- ----- -------------- -------------
Share of profits of
associate 217 768 204 327
---------------------------- ----- -------------- -------------
---------- ---------
---------------------------- ----- -------------- -------------
Profit before taxation 3 812 214 3 419 788
---------------------------- ----- -------------- -------------
Taxation 7 (1 139 303) (855 438)
---------------------------- ----- -------------- -------------
----------- ---------
---------------------------- ----- -------------- -------------
Profit for the period 2 672 911 2 564 350
---------------------------- ----- -------------- -------------
Other comprehensive
income, - -
net of tax
---------------------------- ----- -------------- -------------
---------- ----------
---------------------------- ----- -------------- -------------
Total comprehensive
income for the period 2 672 911 2 564 350
---------------------------- ----- -------------- -------------
========= =========
---------------------------- ----- -------------- -------------
Attributable to:
---------------------------- ----- -------------- -------------
Owners of the parent 2 672 911 2 564 350
---------------------------- ----- -------------- -------------
Non - controlling interest - -
---------------------------- ----- -------------- -------------
---------- ----------
---------------------------- ----- -------------- -------------
2 672 911 2 564 350
---------------------------- ----- -------------- -------------
======== =========
---------------------------- ----- -------------- -------------
Earnings per share (US
cents)
---------------------------- ----- -------------- -------------
- Basic 9.3 0.95 0.91*
---------------------------- ----- -------------- -------------
- Diluted basic 9.3 0.65 0.91*
---------------------------- ----- -------------- -------------
*-the amounts were restated after the consolidation of shares
referred to in note 10.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2013
Note 30 June 2013 31 December 2012
------------------------------ ----- ---------------------------------------- ----------------------------------
US$
EQUITY US$
------------------------------ ----- ---------------------------------------- ----------------------------------
Reviewed Audited
------------------------------ ----- ---------------------------------------- ----------------------------------
Share capital 10 81 502 78 598
------------------------------ ----- ---------------------------------------- ----------------------------------
Capital reserves 34 531 257 18 084 902
------------------------------ ----- ---------------------------------------- ----------------------------------
Retained earnings 13 337 488 12 778 583
------------------------------ ----- ---------------------------------------- ----------------------------------
------------ -----------
------------------------------ ----- ---------------------------------------- ----------------------------------
Total equity 47 950 247 30 942 083
------------------------------ ----- ---------------------------------------- ----------------------------------
LIABILITIES
------------------------------ ----- ---------------------------------------- ----------------------------------
Deposits and other accounts 11 216 509 737 195 002 633
------------------------------ ----- ---------------------------------------- ----------------------------------
Current tax liabilities 324 423 588 966
------------------------------ ----- ---------------------------------------- ----------------------------------
------------ ------------
------------------------------ ----- ---------------------------------------- ----------------------------------
Total liabilities 216 834 160 195 591 599
------------------------------ ----- ---------------------------------------- ----------------------------------
------------ -------------
------------------------------ ----- ---------------------------------------- ----------------------------------
Total equity and liabilities 264 784 407 226 533 682
------------------------------ ----- ---------------------------------------- ----------------------------------
============ ============
------------------------------ ----- ---------------------------------------- ----------------------------------
ASSETS
------------------------------ ----- ---------------------------------------- ----------------------------------
Cash and cash equivalents 13 61 029 068 58 171 045
------------------------------ ----- ---------------------------------------- ----------------------------------
Investment securities held
to maturity 12 5 578 070 5 501 963
------------------------------ ----- ---------------------------------------- ----------------------------------
Investment in debentures 14 3 984 723 -
------------------------------ ----- ---------------------------------------- ----------------------------------
Loans, advances and other
accounts 15 177 740 224 146 599 994
------------------------------ ----- ---------------------------------------- ----------------------------------
Non - current assets held
for sale 2 216 500 2 225 300
------------------------------ ----- ---------------------------------------- ----------------------------------
Quoted and other investments 363 599 326 106
------------------------------ ----- ---------------------------------------- ----------------------------------
Deferred tax assets 2 367 960 1 380 596
------------------------------ ----- ---------------------------------------- ----------------------------------
Investment in associate 19 - 1 025 919
------------------------------ ----- ---------------------------------------- ----------------------------------
Investment properties 3 020 300 3 115 300
------------------------------ ----- ---------------------------------------- ----------------------------------
Property and equipment 16 8 483 963 8 187 459
------------------------------ ----- ---------------------------------------- ----------------------------------
------------- -----------
------------------------------ ----- ---------------------------------------- ----------------------------------
Total assets 264 784 407 226 533 682
------------------------------ ----- ---------------------------------------- ----------------------------------
============ ==========
------------------------------ ----- ---------------------------------------- ----------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2013
Capital Reserves
--------------- ------------------------------ ---------------------------------------------------- ------------------ ------------
Share Capital Share Share Option Regulatory Retained Total
Premium Reserve Reserve Earnings
--------------- ------------------------------ ------------ --------------------- --------------- ------------------ ------------
US$ US$ US$ US$ US$ US$
--------------- ------------------------------ ------------ --------------------- --------------- ------------------ ------------
Balances at 1
January 2012 78 598 15 737 548 45 671 1 023 431 6 486 333 23 371 581
--------------- ------------------------------ ------------ --------------------- --------------- ------------------ ------------
Total
comprehensive
income for
the
six months - - - - 2 564 350 2 564 350
--------------- ------------------------------ ------------ --------------------- --------------- ------------------ ------------
Impairment
allowance for
loans and
advances - - - 254 707 (254 707) -
--------------- ------------------------------ ------------ --------------------- --------------- ------------------ ------------
--------- ----------- ---------- ------------ ---------- -----------
--------------- ------------------------------ ------------ --------------------- --------------- ------------------ ------------
Balances at 30
June 2012 78 598 15 737 548 45 671 1 278 138 8 795 976 25 935 931
--------------- ------------------------------ ------------ --------------------- --------------- ------------------ ------------
Total
comprehensive
income for
the
six months - - - - 5 006 152 5 006 152
--------------- ------------------------------ ------------ --------------------- --------------- ------------------ ------------
Impairment
allowance for
loans and
advances - - - 1 023 545 (1 023 545) -
--------------- ------------------------------ ------------ --------------------- --------------- ------------------ ------------
--------- ----------- ---------- ----------- ---------- -----------
--------------- ------------------------------ ------------ --------------------- --------------- ------------------ ------------
Balances at 31
December 2012 78 598 15 737 548 45 671 2 301 683 12 778 583 30 942 083
--------------- ------------------------------ ------------ --------------------- --------------- ------------------ ------------
Total
comprehensive
income for
the
six months - - - - 2 672 911 2 672 911
--------------- ------------------------------ ------------ --------------------- --------------- ------------------ ------------
Impairment
allowance for
loans and
advances - - - 2 114 006 (2 114 006) -
--------------- ------------------------------ ------------ --------------------- --------------- ------------------ ------------
Shares issued
- private
placement 2 904 14 828 241 - - - 14 831 145
--------------- ------------------------------ ------------ --------------------- --------------- ------------------ ------------
Share issue
expenses - (495 892) - - - (495 892)
--------------- ------------------------------ ------------ --------------------- --------------- ------------------ ------------
--------- ----------- --------- ----------- ---------- -----------
--------------- ------------------------------ ------------ --------------------- --------------- ------------------ ------------
Balances at 30
June 2013 81 502 30 069 897 45 671 4 415 689 13 337 488 47 950 247
--------------- ------------------------------ ------------ --------------------- --------------- ------------------ ------------
========== ========== =========== ========== =========== ==========
--------------- ------------------------------ ------------ --------------------- --------------- ------------------ ------------
CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended 30 June 2013
30 June 2013 30 June2012
-------------------------------------------------- ------------- ------------
US$ US$
-------------------------------------------------- ------------- ------------
Reviewed Reviewed
-------------------------------------------------- ------------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES
-------------------------------------------------- ------------- ------------
Profit before taxation 3 812 214 3 419 788
-------------------------------------------------- ------------- ------------
Non-cash items
-------------------------------------------------- ------------- ------------
-Depreciation 865 224 634 736
-------------------------------------------------- ------------- ------------
-Impairment losses on loans, advances and
debentures 1 887 537 688 020
-------------------------------------------------- ------------- ------------
-Investment properties fair value adjustment - (122 500)
-------------------------------------------------- ------------- ------------
-Non - current assets held for sale fair 75 300 -
value adjustment
-------------------------------------------------- ------------- ------------
-Quoted and other investments fair value
adjustment (37 494) 3 919
-------------------------------------------------- ------------- ------------
-Profit on disposal of associate (580 137) -
-------------------------------------------------- ------------- ------------
-Profit on disposal of property and equipment - (725)
-------------------------------------------------- ------------- ------------
-Impairment reversal on land and buildings - (70 000)
-------------------------------------------------- ------------- ------------
-Share of associate profit (217 768) (204 327)
-------------------------------------------------- ------------- ------------
---------- ----------
-------------------------------------------------- ------------- ------------
Operating cash flows before changes in operating
assets and
liabilities 5 804 876 4 348 911
-------------------------------------------------- ------------- ------------
--------- ---------
-------------------------------------------------- ------------- ------------
Changes in operating assets and liabilities
-------------------------------------------------- ------------- ------------
Deposits and other accounts 21 507 104 11 348 739
-------------------------------------------------- ------------- ------------
Loans, advances and other accounts (33 027 768) (4 315 784)
-------------------------------------------------- ------------- ------------
Investment securities held to maturity (76 107) (5 425 534)
-------------------------------------------------- ------------- ------------
Investment in debentures (3 984 723) -
-------------------------------------------------- ------------- ------------
---------- ---------
-------------------------------------------------- ------------- ------------
(9 776 618) 5 956 332
-------------------------------------------------- ------------- ------------
---------- ---------
-------------------------------------------------- ------------- ------------
Taxation
-------------------------------------------------- ------------- ------------
Capital gains tax paid (264 024) -
-------------------------------------------------- ------------- ------------
Corporate tax paid (2 127 185) (1 758 006)
-------------------------------------------------- ------------- ------------
---------- ---------
-------------------------------------------------- ------------- ------------
Net cash (outflow)/inflow from operating
activities (12 167 827) 4 198 326
-------------------------------------------------- ------------- ------------
---------- ---------
-------------------------------------------------- ------------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES
-------------------------------------------------- ------------- ------------
Purchase of property and equipment (1 161 728) (1 228 446)
-------------------------------------------------- ------------- ------------
Proceeds on disposal of property and equipment - 9 003
-------------------------------------------------- ------------- ------------
Proceeds on disposal of non - current assets 28 500 -
held for sale
-------------------------------------------------- ------------- ------------
Proceeds on disposal of associate 1 850 000 -
-------------------------------------------------- ------------- ------------
Expenses on disposal of associate (26 175) -
-------------------------------------------------- ------------- ------------
---------- ---------
-------------------------------------------------- ------------- ------------
Net cash inflow/(outflow) from investing
activities 690 597 (1 219 443)
-------------------------------------------------- ------------- ------------
---------- ---------
-------------------------------------------------- ------------- ------------
Net cash (outflow)/inflow before financing
activities (11 477 230) 2 978 883
-------------------------------------------------- ------------- ------------
---------- ---------
-------------------------------------------------- ------------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES
-------------------------------------------------- ------------- ------------
Proceeds from issue of shares 14 831 145 -
-------------------------------------------------- ------------- ------------
Share issue expenses (495 892) -
-------------------------------------------------- ------------- ------------
---------- ----------
-------------------------------------------------- ------------- ------------
Net cash inflow from financing activities 14 335 253 -
-------------------------------------------------- ------------- ------------
---------- ----------
-------------------------------------------------- ------------- ------------
Net increase in cash and cash equivalents 2 858 023 2 978 883
-------------------------------------------------- ------------- ------------
Cash and cash equivalents at the beginning
of the period 58 171 045 32 265 953
-------------------------------------------------- ------------- ------------
---------- ----------
-------------------------------------------------- ------------- ------------
Cash and cash equivalents at the end of the
period (note 13) 61 029 068 35 244 836
-------------------------------------------------- ------------- ------------
========== ==========
-------------------------------------------------- ------------- ------------
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
for the six months ended 30 June 2013
1. REPORTING ENTITY
The Holding Company is incorporated and domiciled in Zimbabwe
and is an investment holding company. Its registered office is 64
Kwame Nkrumah Avenue, Harare. Its principal operating subsidiary is
engaged in banking and other companies hold investments.
2. ACCOUNTING CONVENTION
Statement of compliance
This condensed consolidated interim financial report has been
prepared in accordance with IAS 34; Interim Financial Reporting.
Selected explanatory notes are included to explain events and
transactions that are significant to an understanding of the
changes in financial position of the Group since the last annual
consolidated financial statements as at and for the year ended 31
December 2012. This condensed interim financial report does not
include all the information required for the full annual financial
statements prepared in accordance with International Financial
Reporting Standards.
This condensed interim financial report was approved by the
Board of Directors on 21 August 2013.
2.1 Basis of preparation
The condensed consolidated interim financial statements have
been prepared under the historical cost convention except for
quoted and other investments, investment properties and financial
instruments which are carried at fair value and land and buildings
which are stated at their revalued amounts. These condensed
financial statements are reported in United States of America
dollars and rounded to the nearest dollar.
2.2 Comparative financial information
The condensed consolidated interim financial statements comprise
a consolidated statement of financial position, a consolidated
statement of comprehensive income, a consolidated statement of
changes in equity and a consolidated statement of cash flows. The
comparative statement of comprehensive income and the comparative
statements of changes in equity and cash flows are for six
months.
2.3 Use of estimates and judgements
The preparation of the condensed financial statements requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised and in any future periods
affected.
In the process of applying the Group's accounting policies,
management has made the following judgements which have the most
significant effect on the amounts recognised in the condensed
consolidated interim financial statements:
2.3.1 Deferred tax asset
Provision for deferred taxation is made using the liability
method in respect of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes
and the amounts used for taxation purposes. Temporary differences
arising out of the initial recognition of assets or liabilities and
temporary differences on initial recognition of business
combinations that affect neither accounting nor taxable profit are
not recognised. The amount of deferred tax provided is based on the
expected manner of realisation or settlement of the carrying amount
of assets and liabilities, using tax rates enacted or substantively
enacted at the reporting date. Deferred income tax assets and
liabilities are measured at the tax rates that are expected to
apply in the year when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that have been enacted
or substantively enacted at the reporting date.
In determining the amounts used for taxation purposes the
directors referred to applicable effective exchange rates at the
date of acquisition of assets or incurring of liabilities. The
Zimbabwe Revenue Authority (ZIMRA), announced methods to account
for the deferred tax arising on assets purchased in ZWD. These
methods require the preparer to first estimate the equivalent USD
value of those assets at the time of purchase. Since the
measurement of transactions in Zimbabwe dollars in the periods
prior to indicating 2008 was affected by several economic variables
such as mode of payment and hyperinflation, this is an area where
the directors have had to apply their judgement and acknowledge
there could be significant variations in the results achieved
depending on assumptions made.
2.3.2 Land and buildings
Land and buildings are stated at their revalued amounts based on
valuations performed annually by independent valuers, less
subsequent accumulated depreciation and impairment losses.
2.3.3 Investment properties
The fair value of the investment properties at 30 June 2013 has
been arrived at on the basis of directors' valuation on an open
market value method. The valuation was arrived at by reference to
market evidence of transaction prices for similar properties. No
liabilities are guaranteed by the investment properties.
2.3.4 Investment securities held to maturity
The RBZ Bond was valued at cost as there is currently no market
information to facilitate the application of fair value principles.
There is currently no active market for these bonds.
2.3.5 Impairment losses on loans and advances
The Group reviews all loans and advances at each reporting date
to assess whether an impairment loss should be recorded in profit
or loss. In particular, judgement by management is required in the
estimation of the amount and timing of future cash flows when
determining the impairment loss. In estimating these cash flows,
the Group makes judgements about the borrower's financial situation
and the net realisable value of collateral. These estimates are
based on assumptions about a number of factors and actual results
may differ, resulting in future changes to the allowance. Loans and
advances that have been assessed individually and found not to be
impaired and all individually insignificant loans and advances are
then assessed collectively, in groups of assets with similar risk
characteristics, to determine whether provision should be made due
to incurred loss events for which there is objective evidence but
whose effects are not yet evident. The collective assessment takes
account of data from the loan portfolio (such as credit quality,
levels of arrears, credit utilisation, loan to collateral ratios
etc.), concentrations of risks and economic data.
The impairment loss on loans and advances is disclosed in more
detail under note 15.3.
2.3.6 Going concern
The Directors have assessed the ability of the Group to continue
operating as a going concern and believe that the preparation of
these condensed financial statements on a going concern basis is
still appropriate.
3. ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of
these condensed financial statements are set out below. These
policies have been consistently applied unless otherwise
stated.
3.1 Financial instruments
3.1.1 Classification
Financial assets and liabilities at fair value through profit
and loss include financial assets and liabilities held for trading
i.e. those that the Group principally holds for the purpose of
short-term profit taking as well as those that were, upon initial
recognition, designated by the entity as financial assets or
liabilities at fair value through profit and loss.
Loans and receivables are non-derivative financial assets with
fixed or determinable payments that are not quoted in an active
market other than those classified as held-for-trading and the
Group upon initial recognition designates as at fair value through
profit or loss and those the Group upon initial recognition
designates as available-for-sale.
Held-to-maturity investments are non-derivative financial assets
with fixed or determinable payments and fixed maturity that the
Group has the positive intention and ability to hold to
maturity.
Financial assets available-for-sale are non-derivative financial
assets that are designated as available-for- sale or are not
classified as loans and receivables, held-to-maturity investments
or financial assets at fair value through profit or loss.
3.1.2 Recognition
The Group recognises financial assets at fair value through
profit and loss and available for sale assets on the date it
commits to purchase the assets. From this date any gains and losses
arising from changes in fair value of the assets are recognised in
the income statement and other comprehensive income
respectively.
Held-to-maturity investments and loans and receivables are
recognised at cost which is the fair value of the consideration
given on the day that they are transferred to the Group.
3.1.3 Measurement
Financial assets and liabilities are measured initially at fair
value. Subsequent to initial recognition, financial assets and
liabilities are measured at fair value through profit and loss and
available-for-sale financial assets are measured at fair value,
except that any instrument that does not have a quoted market price
in an active market and whose fair value cannot be reliably
measured is stated at cost, less impairment losses.
Held-to-maturity investments and loans and receivables are
measured at amortised cost less impairment losses. Amortised cost
is calculated using the effective interest rate method. Premiums
and discounts, including initial transaction costs, are included in
the carrying amount of the related instrument and amortised based
on the effective interest rate of the instrument.
3.1.4 Fair value measurement principles
The fair value of financial instruments is based on their quoted
market price at the reporting date without any deduction for
transaction costs. If a quoted market price is not available, the
fair value of the instrument is estimated using pricing models or
discounted cash flow techniques.
Where discounted cash flow techniques are used, estimated future
cash flows are based on management's best estimates and the
discount rate is a market related rate at the reporting date for an
instrument with similar terms and conditions. Where pricing models
are used, inputs are based on market related measures at the
reporting date.
3.2 Investment properties
Investment properties are stated at fair value. Gains and losses
arising from a change in fair value of investment properties are
recognized in the income statement. The fair value is determined at
the end of each reporting period.
3.3 Share - based payments
The Group issues share options to certain employees in terms of
the Employee Share Option Scheme. Share options are measured at
fair value at the date of grant. The fair value determined at the
date of grant of the options is expensed on a straight-line basis
over the vesting period, based on the Group's estimate of shares
that will eventually vest. Fair value is measured using the
Black-Scholes option pricing model. The expected life used in the
model has been adjusted, based on management's best estimate, for
the effects of non-transferability, exercise restrictions and other
behavioral considerations.
3.4 Property and equipment
International Accounting Standard 16 (IAS 16) stipulates that
the residual value and the useful life of an asset must be reviewed
at least each financial year-end. If the residual value of an asset
increases by an amount equal to or greater than the asset's
carrying amount, then the depreciation of the asset ceases.
Depreciation will resume only when the residual value decreases to
an amount below the asset's carrying amount.
4. INTEREST INCOME
30 June 2013 30 June 2012
--------------------------------- ------------- -------------
US$ US$
--------------------------------- ------------- -------------
Loans and advances to banks 936 587 375 709
--------------------------------- ------------- -------------
Loans and advances to customers 15 038 076 11 182 430
--------------------------------- ------------- -------------
Investment securities 124 426 72 121
--------------------------------- ------------- -------------
Other 107 28 014
--------------------------------- ------------- -------------
---------- -----------
--------------------------------- ------------- -------------
16 099 196 11 658 274
--------------------------------- ------------- -------------
========= ==========
--------------------------------- ------------- -------------
5. non-interest income
30 June 2013 30 June 2012
----------------------------------------- ------------- -------------
US$ US$
----------------------------------------- ------------- -------------
Net gains/(losses)from quoted and other
investments 37 494 (3 919)
----------------------------------------- ------------- -------------
Commission and fee income 7 590 765 6 556 955
----------------------------------------- ------------- -------------
Fair value adjustment on investment
properties - 122 500
----------------------------------------- ------------- -------------
Fair value adjustment on non- current (75 300) -
assets held for sale
----------------------------------------- ------------- -------------
Profit on disposal of property and
equipment - 725
----------------------------------------- ------------- -------------
Profit on disposal of associate 580 137 -
----------------------------------------- ------------- -------------
Other net operating income 19 398 8 979
----------------------------------------- ------------- -------------
---------- ----------
----------------------------------------- ------------- -------------
8 152 494 6 685 240
----------------------------------------- ------------- -------------
========== ==========
----------------------------------------- ------------- -------------
6. Operating EXPENDITURE
30 June 2013 30 June 2012
------------------------------------------- ------------- ----------------
US$ US$
------------------------------------------- ------------- ----------------
The operating profit is after charging
the following:-
------------------------------------------- ------------- ----------------
Administration costs 6 279 681 5 076 333
------------------------------------------- ------------- ----------------
Staff costs - salaries, allowances
and related costs 5 880 682 4 849 326
------------------------------------------- ------------- ----------------
Depreciation 865 224 634 736
------------------------------------------- ------------- ----------------
Impairment reversal on land and buildings - (70 000)
------------------------------------------- ------------- ----------------
---------- ---------------
------------------------------------------- ------------- ----------------
13 025 587 10 490 395
------------------------------------------- ------------- ----------------
========== =========
------------------------------------------- ------------- ----------------
7. taxation
30 June 2013 30 June 2012
------------------- -------------------- ---------------
US$ US$
------------------- -------------------- ---------------
Current tax 1 808 389 1 050 982
------------------- -------------------- ---------------
Aids levy 54 252 31 550
------------------- -------------------- ---------------
Deferred tax (987 362) (227 094)
------------------- -------------------- ---------------
Capital gains tax 264 024 -
------------------- -------------------- ---------------
---------- --------------
------------------- -------------------- ---------------
1 139 303 855 438
------------------- -------------------- ---------------
========== =========
------------------- -------------------- ---------------
8. IMPAIRMENT LOSSES ON LOANS AND ADVANCES
Impairment losses are applied to write off advances in part or
in whole when they are considered partly or wholly irrecoverable.
The aggregate impairment losses which are raised during the period
are dealt with as per paragraph 8.3.
8.1 Specific provisions
Specific provisions are made where the repayment of identified
advances is in doubt and reflect estimates of the loss. Advances
are written off against specific provisions once the probability of
recovering any significant amounts becomes remote.
8.2 Portfolio provisions
The portfolio provision relates to the inherent risk of losses
which, although not separately identified, is known to be present
in any loan portfolio.
8.3 Regulatory Guidelines and International Financial Reporting Standards Requirements
The Banking Regulations 2000 gives guidance on provisioning for
doubtful debts and stipulates certain minimum percentages to be
applied to the respective categories of the loan book.
International Accounting Standard 39, Financial Instruments
Recognition and Measurement (IAS 39), prescribes the provisioning
for impairment losses based on the actual loan losses incurred in
the past applied to the sectoral analysis of book debts and the
discounting of expected cash flows on specific problem
accounts.
The two prescriptions are likely to give different results. The
Group has taken the view that where the IAS 39 charge is less than
the amount provided for in the Banking Regulations, the difference
is recognized directly in equity as a transfer from retained
earnings to a regulatory reserve and where it is more, the full
amount will be charged to the profit or loss.
8.4 Non-performing loans
Interest on loans and advances is accrued to income until such
time as reasonable doubt exists about its collectability,
thereafter and until all or part of the loan is written off,
interest continues to accrue on customers' accounts, but is not
included in income. Such suspended interest is deducted from loans
and advances in the statement of financial position. This policy
meets the requirements of the Banking Regulations 2000 issued by
the RBZ.
9. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the profit
for the year attributable to ordinary equity holders of NMBZ
Holdings Limited by the weighted average number of ordinary shares
outstanding during the year.
Diluted earnings per share is calculated by dividing the profit
attributable to ordinary equity holders of NMBZ Holdings Limited
adjusted for the after tax effect of: (a) any dividends or other
items related to dilutive potential ordinary shares deducted in
arriving at profit or loss attributable to ordinary equity holders
of the parent entity; (b) any interest recognised in the period
related to dilute potential ordinary shares; (c) any other changes
in income or expense that would result from the conversion of the
dilutive potential ordinary shares, by the weighted average number
of ordinary shares outstanding during the year plus the weighted
average
number of ordinary shares that would be issued on the conversion
of all the dilutive potential ordinary shares into ordinary
shares.
9.1 Earnings
30 June 2013 30 June 2012
------- ------------- -------------
US$ US$
------- ------------- -------------
Basic 2 672 911 2 564 350
------- ------------- -------------
9.2 Number of shares
30 June 2013 30 June 2012
-------------------------------------- --------------------- ----------------------
9.2.1 Basic earnings per share
-------------------------------------- --------------------- ----------------------
Weighted average number of ordinary
shares for basic earnings per share 280 710 729 280 710 729*
-------------------------------------- --------------------- ----------------------
9.2.2 Diluted earnings per share
-------------------------------------- --------------------- ----------------------
Number of share at beginning of
period 280 710 729 280 710 729*
-------------------------------------- --------------------- ----------------------
Shares issued 103 716 672 -
-------------------------------------- --------------------- ----------------------
Shares issued - private placement 103 714 287 -
-------------------------------------- --------------------- ----------------------
Shares issued on consolidation 2 385 -
-------------------------------------- --------------------- ----------------------
Effect of dilution:
-------------------------------------- --------------------- ----------------------
Shares options outstanding 1 074 287 1 074 287*
-------------------------------------- --------------------- ----------------------
Share options approved but not yet 28 071 073 -
granted
-------------------------------------- --------------------- ----------------------
---------- --------
-------------------------------------- --------------------- ----------------------
413 572 761 281 785 016*
-------------------------------------- --------------------- ----------------------
=========== ============
-------------------------------------- --------------------- ----------------------
9.3 Earnings per share (US cents)
30 June 2013 30 June 2012
--------------- ------------- -------------
Basic 0.95 0.91*
--------------- ------------- -------------
Diluted basic 0.65 0.91*
--------------- ------------- -------------
* Restated after the consolidation of shares referred to in note
10 below.
10. SHARE CAPITAL
30 June 2013 31 December 30 June 2013 31 December
2012 2012
------------------------------- ------------- ------------ ------------- ------------
Shares Shares US$ US$
------------------------------- ------------- ------------ ------------- ------------
million million
------------------------------- ------------- ------------ ------------- ------------
10.1 Authorised
------------------------------- ------------- ------------ ------------- ------------
Ordinary shares of US$0.00028
each 600 350 168 000 98 000
------------------------------- ------------- ------------ ------------- ------------
===== ==== ====== =======
------------------------------- ------------- ------------ ------------- ------------
At an Extraordinary General Meeting held on 19 February 2013,
the Company approved a share consolidation exercise at a ratio of
10:1 and consolidated 3 500 000 000 (3.5 billion) shares with a
nominal value of US$0.000028 per share to 350 000 000 (350 million)
shares with a nominal value of US$0.000028 per share. The Company
also approved an increase in the authorised share capital from 350
million shares with a nominal value of $0.000028 per share to 600
million shares with a nominal value of $0.000028 per share.
10.2 Issued and fully paid
30 June 2013 31 December 30 June 13 31 December
2012 2012
--------------- ------------- ------------ ----------- ------------
Shares Shares US$ US$
--------------- ------------- ------------ ----------- ------------
million million
--------------- ------------- ------------ ----------- ------------
At 1 January 281 281 78 598 78 598
--------------- ------------- ------------ ----------- ------------
Shares issued 104 - 2 904 -
--------------- ------------- ------------ ----------- ------------
----- ------ ------- -------
--------------- ------------- ------------ ----------- ------------
385 281 81 502 78 598
--------------- ------------- ------------ ----------- ------------
===== ====== ====== ======
--------------- ------------- ------------ ----------- ------------
The Company received a total of US$14 831 145 equity capital
from three strategic foreign partners namely Norfund, FMO and
AfricInvest who were allocated 34 571 429 shares each for
individually investing US$4 943 715. This amount, net of share
issue expenses, was used to recapitalise the Bank in order to
contribute towards the minimum capital requirements set by the
Reserve Bank of Zimbabwe of US$50 million by 30 June 2013.
NMBZ Holdings Limited entered into a share buy-back agreement
with Nederlandse Financierings-Maatschappij Voor
Ontiwikkelingslanden N.V. (FMO), Norwegian Investment Fund for
Developing Countries (Norfund) and AfricInvest Financial Sector
Holdings (AfricInvest) where these three strategic investors have a
right on their own discretion at any time after the 5(th)
anniversary but before the 9(th) anniversary of its first
subscription date, to request NMBZ to buy back all or part of its
NMBZ shares at a price to be determined using the agreed terms as
entailed in the share buy-back agreement. It is a condition
precedent that at any point when the share buy-back is being
considered, the proceeds used to finance the buy-back should come
from the distributable reserves which are over and above the
minimum regulatory capital requirements. Further, no buy-back
option can be exercised by any investor after the 9(th) anniversary
of the effective date.
Subject to the provisions of section 183 of the Companies Act
(Chapter 24:03), the unissued shares are under the control of the
directors.
11. DepositS and other accounts
11.1 Deposits and other accounts
30 June 2013 31 December
2012
------------------------------------------------------ ------------- ------------
US$ US$
------------------------------------------------------ ------------- ------------
Deposits from banks and other financial institutions 47 992 182 38 969 071
------------------------------------------------------ ------------- ------------
Current and deposit accounts 162 681 607 152 452 995
------------------------------------------------------ ------------- ------------
----------- ----------
------------------------------------------------------ ------------- ------------
Total deposits 210 673 789 191 422 066
------------------------------------------------------ ------------- ------------
Trade and other payables 5 835 948 3 580 567
------------------------------------------------------ ------------- ------------
----------- -----------
------------------------------------------------------ ------------- ------------
216 509 737 195 002 633
------------------------------------------------------ ------------- ------------
=========== ==========
------------------------------------------------------ ------------- ------------
11.2 Maturity analysis
30 June 2013 31 December
2012
--------------------- ------------- ------------
US$ US$
--------------------- ------------- ------------
Less than one month 169 304 967 159 048 090
--------------------- ------------- ------------
1 to 3 months 10 836 168 8 388 210
--------------------- ------------- ------------
3 to 6 months 20 220 081 5 686 674
--------------------- ------------- ------------
6 months to 1 year 1 769 715 1 675 259
--------------------- ------------- ------------
1 to 5 years 8 542 858 16 623 833
--------------------- ------------- ------------
Over 5 years - -
--------------------- ------------- ------------
----------- ----------
--------------------- ------------- ------------
210 673 789 191 422 066
--------------------- ------------- ------------
========== ==========
--------------------- ------------- ------------
11.3 Sectoral analysis of deposits
30 June 2013 31 December
2012
---------------------------------- ---------------------- ----------- ---------------- ------
US$ % US$ %
---------------------------------- ---------------------- ----------- ---------------- ------
Banks and other financial
institutions 47 992 182 23 38 969 071 20
---------------------------------- ---------------------- ----------- ---------------- ------
Transport and telecommunications
companies 6 344 963 3 6 040 981 3
---------------------------------- ---------------------- ----------- ---------------- ------
Mining companies 4 171 466 2 3 221 341 2
---------------------------------- ---------------------- ----------- ---------------- ------
Municipalities and parastatals 16 266 626 8 18 768 175 10
---------------------------------- ---------------------- ----------- ---------------- ------
Manufacturing 25 123 778 12 23 888 559 12
---------------------------------- ---------------------- ----------- ---------------- ------
Distribution 19 842 897 9 17 912 925 9
---------------------------------- ---------------------- ----------- ---------------- ------
Services 30 184 949 14 28 199 595 15
---------------------------------- ---------------------- ----------- ---------------- ------
Agriculture 6 659 542 3 9 085 971 5
---------------------------------- ---------------------- ----------- ---------------- ------
Individuals 33 320 712 16 29 115 145 15
---------------------------------- ---------------------- ----------- ---------------- ------
Other deposits 20 766 674 10 16 220 303 9
---------------------------------- ---------------------- ----------- ---------------- ------
--------------- ---------- --------------- -----
---------------------------------- ---------------------- ----------- ---------------- ------
191 422
210 673 789 100 066 100
---------------------------------- ---------------------- ----------- ---------------- ------
========= ====== ========= ===
---------------------------------- ---------------------- ----------- ---------------- ------
12. Investment securities held to maturity
30 June 2013 31 December 2012
---------------------------- ------------- -----------------
US$ US$
---------------------------- ------------- -----------------
RBZ foreign currency bonds 5 578 070 5 501 963
---------------------------- ------------- -----------------
12.1 Maturity analysis of investment securities held to
maturity
30 June 2013 31 December 2012
--------------------- ------------- -----------------
US$ US$
--------------------- ------------- -----------------
Less than one month - -
--------------------- ------------- -----------------
1 to 3 months - -
--------------------- ------------- -----------------
3 to 6 months 2 348 056 2 271 949
--------------------- ------------- -----------------
6 months to 1 year 969 004 969 004
--------------------- ------------- -----------------
1 to 5 years 2 261 010 2 261 010
--------------------- ------------- -----------------
Over 5 years - -
--------------------- ------------- -----------------
--------- ---------
--------------------- ------------- -----------------
5 578 070 5 501 963
--------------------- ------------- -----------------
========= =========
--------------------- ------------- -----------------
13. Cash and cash equivalents
30 June 2013 31 December 2012
----------------------------------- ------------- -----------------
US$ US$
----------------------------------- ------------- -----------------
Balances with Central Bank 6 988 836 22 671 712
----------------------------------- ------------- -----------------
Current, nostro accounts and cash 18 040 232 14 999 333
----------------------------------- ------------- -----------------
Interbank placements 36 000 000 20 500 000
----------------------------------- ------------- -----------------
---------- ----------
----------------------------------- ------------- -----------------
61 029 068 58 171 045
----------------------------------- ------------- -----------------
========== =========
----------------------------------- ------------- -----------------
14. Investment in debentures
30 June 2013 31 December 2012
------------------------------ ------------- -----------------
US$ US$
------------------------------ ------------- -----------------
Debentures 4 787 074 -
------------------------------ ------------- -----------------
Provision for impairment loss (802 351) -
------------------------------ ------------- -----------------
--------- --------
------------------------------ ------------- -----------------
3 984 723 -
------------------------------ ------------- -----------------
========= ========
------------------------------ ------------- -----------------
During the period under review a loan with a carrying amount of
US$4 787 074 was converted to convertible debentures of US$4 787
074 with a maturity period of 5 years. The debentures are at an
interest rate of 10% per annum. The Bank has an option to convert
the debentures to equity or redeem the debentures at par on or
before the maturity date, 9 March 2018.
15. LOANS, ADVANCES AND OTHER ACCOUNTS
15.1 Total loans, advances and other accounts
30 June 2013 31 December 2012
---------------------------- ------------- -----------------
15.1.1 Advances US$ US$
---------------------------- ------------- -----------------
Fixed term loans 50 916 541 57 124 283
---------------------------- ------------- -----------------
Local loans and overdrafts 122 639 517 86 823 914
---------------------------- ------------- -----------------
----------- -----------
---------------------------- ------------- -----------------
173 556 058 143 948 197
---------------------------- ------------- -----------------
Other accounts 4 184 166 2 651 797
---------------------------- ------------- -----------------
----------- ----------
---------------------------- ------------- -----------------
177 740 224 146 599 994
---------------------------- ------------- -----------------
=========== ===========
---------------------------- ------------- -----------------
15.1.2 Maturity analysis
------------------------------------------- ------------- ------------
30 June 2013 31 December
2012
------------------------------------------- ------------- ------------
US$ US$
------------------------------------------- ------------- ------------
Less than one month 88 639 551 92 386 313
------------------------------------------- ------------- ------------
1 to three months 39 382 731 19 352 134
------------------------------------------- ------------- ------------
3 to 6 months 3 840 001 3 271 119
------------------------------------------- ------------- ------------
6 months to 1 year 7 208 722 4 968 635
------------------------------------------- ------------- ------------
1 to 5 years 44 383 907 32 439 174
------------------------------------------- ------------- ------------
Over 5 years - -
------------------------------------------- ------------- ------------
----------- -----------
------------------------------------------- ------------- ------------
Total advances 183 454 912 152 417 375
------------------------------------------- ------------- ------------
Provision for impairment losses on loans
and advances (8 351 528) (7 269 799)
------------------------------------------- ------------- ------------
Suspended interest (1 547 326) (1 199 379)
------------------------------------------- ------------- ------------
----------- -----------
------------------------------------------- ------------- ------------
173 556 058 143 948 197
------------------------------------------- ------------- ------------
Other accounts 4 184 166 2 651 797
------------------------------------------- ------------- ------------
----------- -----------
------------------------------------------- ------------- ------------
177 740 224 146 599 994
------------------------------------------- ------------- ------------
=========== ===========
------------------------------------------- ------------- ------------
15.2 Sectoral analysis of utilisations
30 June 2013 31 December
2012
------------------------------ ------------- ----- ----------------------- -----
US$ % US$ %
------------------------------ ------------- ----- ----------------------- -----
Agriculture and horticulture 14 407 057 8 9 894 729 6
------------------------------ ------------- ----- ----------------------- -----
Conglomerates 6 896 969 4 4 683 682 3
------------------------------ ------------- ----- ----------------------- -----
Services 39 483 207 22 30 216 258 20
------------------------------ ------------- ----- ----------------------- -----
Mining 1 467 763 1 1 347 402 1
------------------------------ ------------- ----- ----------------------- -----
Food & beverages 236 761 - 214 163 -
------------------------------ ------------- ----- ----------------------- -----
Individuals 40 457 048 21 30 379 234 20
------------------------------ ------------- ----- ----------------------- -----
Manufacturing 25 754 814 14 29 008 475 19
------------------------------ ------------- ----- ----------------------- -----
Distribution 54 751 293 30 46 673 432 31
------------------------------ ------------- ----- ----------------------- -----
----------- ---- ---------- ----
------------------------------ ------------- ----- ----------------------- -----
183 454 912 100 152 417 375 100
------------------------------ ------------- ----- ----------------------- -----
=========== ==== ========= ===
------------------------------ ------------- ----- ----------------------- -----
The material concentration of loans and advances are in the
distribution sector at 30% (2012:31%).
15.3 Allowance for impairment losses on loans, advances and
debentures
30 31 December
June 2012
2013
---------------- ------------ ---------- ------------ ----------- ------------ ------------
Specific Portfolio Total Specific Portfolio Total
---------------- ------------ ---------- ------------ ----------- ------------ ------------
US$ US$ US$ US$ US$ US$
---------------- ------------ ---------- ------------ ----------- ------------ ------------
3 354
At 1 January 7 164 064 105 735 7 269 799 088 - 3 354 088
---------------- ------------ ---------- ------------ ----------- ------------ ------------
Charge against 3 879
profits 1 841 017 46 520 1 887 537 327 105 735 3 985 062
---------------- ------------ ---------- ------------ ----------- ------------ ------------
Bad debts
written off (3 458) - (3 458) (69 351) - (69 351)
---------------- ------------ ---------- ------------ ----------- ------------ ------------
--------- --------- -------- ------- ------- ---------
---------------- ------------ ---------- ------------ ----------- ------------ ------------
7 164
Balance 9 001 623 152 255 9 153 878 064 105 735 7 269 799
---------------- ------------ ---------- ------------ ----------- ------------ ------------
========= ======== ======== ======== ======= ========
---------------- ------------ ---------- ------------ ----------- ------------ ------------
15.4 Non-performing loans and advances
30 June 2013 31 December 2012
----------------------------------------- ------------- -----------------
US$ US$
----------------------------------------- ------------- -----------------
Total non-performing loans and advances 41 877 499 23 996 312
----------------------------------------- ------------- -----------------
Provision for impairment loss on loans
and advances (9 001 623) (7 164 064)
----------------------------------------- ------------- -----------------
Provision for impairment losses on 802 351 -
debentures (note 14)
----------------------------------------- ------------- -----------------
Suspended interest (1 547 326) (1 199 379)
----------------------------------------- ------------- -----------------
----------- -----------
----------------------------------------- ------------- -----------------
Residue 32 130 901 15 632 869
----------------------------------------- ------------- -----------------
========== ===========
----------------------------------------- ------------- -----------------
16. PROPERTY AND EQUIPMENT
Land and Computer Furniture Motor vehicles Total
buildings equipment andfittings
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
US$ US$ US$ US$ US$
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
COST
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
Balance at 1
January 8 507
2012 2 738 252 1 524 271 2 478 701 1 766 515 739
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
2 744
Additions - 920 559 268 028 1 556 092 679
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
Revaluation gain 77 472 - - - 77 472
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
Disposals - - (10 825) (250) (11 075)
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
Reclassifications - 251 703 (251 703) - -
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
------------- ----------- ------------- ----------- -------------
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
Balances at 31
December 11 318
2012 2 815 724 2 696 533 2 484 201 3 322 357 815
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
1 161
Additions 4 216 590 068 255 276 312 168 728
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
--------------- ------------- -------------- ------------- ------------
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
Balance at 30 12 480
June 2013 2 819 940 3 286 601 2 739 477 3 634 525 543
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
------------- ------------- ------------- ------------ -----------
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
DEPRECIATION
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
Balance at 1
January 1 705
2012 293 469 976 912 287 323 201 757
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
Charge for the 1 430
year 45 430 312 943 410 138 662 445 956
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
Transfers - (2 562) - - (2 562)
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
Reclassification - 65 826 (65 826) - -
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
Disposals - - (2 545) (250) (2 795)
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
-------------- -------------- --------------- ------------- ------------
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
Balance at 31
December 3 131
2012 45 723 846 183 1 254 054 985 396 356
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
Charge for the
period 20 525 198 236 208 637 437 826 865 224
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
-------------- --------------- ------------- ------------ -------------
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
Balance at 30 3 996
June 2013 66 248 1 044 419 1 462 691 1 423 222 580
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
-------------- -------------- ------------- ----------- ------------
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
NET BOOK VALUE
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
8 483
At 30 June 2013 2 753 692 2 242 182 1 276 786 2 211 303 963
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
======== ======= ======== ======= ========
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
At 31 December 8 187
2012 2 770 001 1 850 350 1 230 147 2 336 961 459
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
======== ======= ======= ======= ========
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
6 801
At 1 January 2012 2 737 959 1 054 295 1 566 414 1 443 314 982
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
======== ====== ======= ======= ========
-------------------- ---------------- ---------------- ---------------- ------------------------ ----------------
17. CAPITAL COMMITMENTS
30 June 31 December
-------------------------------- ------------ -------------
2013 2012
-------------------------------- ------------ -------------
US$ US$
-------------------------------- ------------ -------------
Capital expenditure contracted 224 101 -
for
-------------------------------- ------------ -------------
Capital expenditure authorised
but not yet contracted for 4 353 828 5 739 655
-------------------------------- ------------ -------------
----------- ------------
-------------------------------- ------------ -------------
4 577 929 5 739 655
-------------------------------- ------------ -------------
======== =========
-------------------------------- ------------ -------------
The capital expenditure will be funded from internal
resources.
18. CONTINGENT LIABILITIES
30 June 2013 31 December 2012
--------------------- ------------- -----------------
US$ US$
--------------------- ------------- -----------------
Guarantees 3 641 105 7 827 744
--------------------- ------------- -----------------
Commitments to lend 38 582 928 29 326 528
--------------------- ------------- -----------------
---------- ----------
--------------------- ------------- -----------------
42 224 033 37 154 272
--------------------- ------------- -----------------
========= ==========
--------------------- ------------- -----------------
19. INVESTMENT IN ASSOCIATE
The Group had a 24.79% interest in African Century Limited,
which is involved in the provision of lease finance. The investment
was disposed off on the 29(th) of May 2013 for a consideration of
US$1 850 000.
African Century Limited is a company that is not listed on any
public exchange. The following table illustrates summarized
unaudited and audited financial information of the Group's
investment in African Century Limited.
Share of the associate's statement of financial position:
30 June 2013 31 December 2012
----------------------------------- --------------- -----------------
US$ US$
----------------------------------- --------------- -----------------
Unaudited Audited
----------------------------------- --------------- -----------------
Current assets 5 876 431 5 036 603
----------------------------------- --------------- -----------------
Non-current assets 49 722 56 750
----------------------------------- --------------- -----------------
Current liabilities (700 609) (457 427)
----------------------------------- --------------- -----------------
Non-current liabilities (3 981 857) (3 610 007)
----------------------------------- --------------- -----------------
-------------- -------------
----------------------------------- --------------- -----------------
Equity 1 243 687 1 025 919
----------------------------------- --------------- -----------------
========= ========
----------------------------------- --------------- -----------------
Share of associate's revenue
and profit:
----------------------------------- --------------- -----------------
Revenue 564 172 904 446
----------------------------------- --------------- -----------------
========= =======
----------------------------------- --------------- -----------------
Profit 217 768 434 252
----------------------------------- --------------- -----------------
========= =======
----------------------------------- --------------- -----------------
Disposal of investment (1 243 687) -
----------------------------------- --------------- -----------------
Carrying amount of the investment - 1 025 919
----------------------------------- --------------- -----------------
========= =======
----------------------------------- --------------- -----------------
Reconciliation of carrying
amount of
investment in Associate:
----------------------------------- --------------- -----------------
Balance at 1 January 1 025 919 591 667
----------------------------------- --------------- -----------------
Share of profit of associate 217 768 434 252
----------------------------------- --------------- -----------------
Disposal of investment (1 243 687) -
----------------------------------- --------------- -----------------
-------------- ------------
----------------------------------- --------------- -----------------
Balance - 1 025 919
----------------------------------- --------------- -----------------
========= ========
----------------------------------- --------------- -----------------
20. EXCHANGE RATES
The following exchange rates have been used to translate the
foreign currency balances to United States of America dollars (US$)
at period end:-
Mid-rate Mid-rate
------------------------ ----- ------------- -----------------
30 June 2013 31 December 2012
------------------------ ----- ------------- -----------------
US$ US$
------------------------ ----- ------------- -----------------
British Pound Sterling GBP 1.5274 1.6156
------------------------ ----- ------------- -----------------
South African Rand ZAR 9.9279 8.4776
------------------------ ----- ------------- -----------------
European Euro EUR 1.3074 1.3200
------------------------ ----- ------------- -----------------
Botswana Pula BWP 8.5985 7.7721
------------------------ ----- ------------- -----------------
NMB BANK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2013
30 June 2013 30 June 2012
-------------------------------- ------ ------------------------------- -------------
US$ US$
-------------------------------- ------ ------------------------------- -------------
Reviewed Reviewed
-------------------------------- ------ ------------------------------- -------------
Note
-------------------------------- ------ ------------------------------- -------------
Interest income 16 099 198 11 541 401
---------------------------------------- ------------------------------- -------------
Interest expense (6 610 712) (4 855 839)
---------------------------------------- ------------------------------- -------------
----------- -----------
-------------------------------- ------ ------------------------------- -------------
Net interest income 9 488 486 6 685 562
---------------------------------------- ------------------------------- -------------
Net foreign exchange gains 866 453 905 133
---------------------------------------- ------------------------------- -------------
Non-interest income a 7 536 120 6 695 141
-------------------------------- ------ ------------------------------- -------------
----------- -----------
-------------------------------- ------ ------------------------------- -------------
Net operating income 17 891 059 14 285 836
---------------------------------------- ------------------------------- -------------
Operating expenditure b (13 009 202) (10 490 395)
-------------------------------- ------ ------------------------------- -------------
Impairment losses on loans,
advances and debentures (1 887 537) (688 020)
---------------------------------------- ------------------------------- -------------
----------- ----------
-------------------------------- ------ ------------------------------- -------------
Profit before taxation 2 994 320 3 107 421
---------------------------------------- ------------------------------- -------------
Taxation (815 104) (787 981)
---------------------------------------- ------------------------------- -------------
---------- ---------
-------------------------------- ------ ------------------------------- -------------
Profit for the period 2 179 216 2 319 440
---------------------------------------- ------------------------------- -------------
Other comprehensive income, - -
net of tax
-------------------------------- ------ ------------------------------- -------------
---------- ---------
-------------------------------- ------ ------------------------------- -------------
Total comprehensive income
for the
Period 2 179 216 2 319 440
---------------------------------------- ------------------------------- -------------
========== =========
-------------------------------- ------ ------------------------------- -------------
Earnings per share (US cents):
-------------------------------- ------ ------------------------------- -------------
-Basic c 13.21 14.06
-------------------------------- ------ ------------------------------- -------------
NMB BANK LIMITED
STATEMENT OF FINANCIAL POSITION
as at 30 June 2013
30 June 2013 31 December 2012
------------------------------ ------ --------------------------------------------------- ------------------
US$ US$
------------------------------ ------ --------------------------------------------------- ------------------
Reviewed Audited
------------------------------ ------ --------------------------------------------------- ------------------
EQUITY Note
------------------------------ ------ --------------------------------------------------- ------------------
Share capital d 16 506 16 502
------------------------------ ------ --------------------------------------------------- ------------------
Capital reserves 35 890 190 17 879 615
-------------------------------------- --------------------------------------------------- ------------------
Retained earnings 12 552 758 12 487 547
-------------------------------------- --------------------------------------------------- ------------------
------------ -----------
------------------------------ ------ --------------------------------------------------- ------------------
Total Equity 48 459 454 30 383 664
-------------------------------------- --------------------------------------------------- ------------------
LIABILITIES
------------------------------ ------ --------------------------------------------------- ------------------
Deposits and other accounts 216 334 626 194 981 244
-------------------------------------- --------------------------------------------------- ------------------
Current tax liabilities 425 835 728 620
-------------------------------------- --------------------------------------------------- ------------------
------------- -------------
------------------------------ ------ --------------------------------------------------- ------------------
Total liabilities 216 760 461 195 709 864
-------------------------------------- --------------------------------------------------- ------------------
------------- -------------
------------------------------ ------ --------------------------------------------------- ------------------
Total equity and liabilities 265 219 915 226 093 528
-------------------------------------- --------------------------------------------------- ------------------
============= =============
------------------------------ ------ --------------------------------------------------- ------------------
ASSETS
------------------------------ ------ --------------------------------------------------- ------------------
Cash and cash equivalents e 61 029 068 58 171 045
------------------------------ ------ --------------------------------------------------- ------------------
Investment securities held
to maturity 5 578 070 5 501 963
-------------------------------------- --------------------------------------------------- ------------------
Amount owing from Holding
Company 641 319 956 161
-------------------------------------- --------------------------------------------------- ------------------
Investment in debentures 3 984 723 -
------------------------------ ------ --------------------------------------------------- ------------------
Loans, advances and other
accounts 177 803 072 146 485 358
-------------------------------------- --------------------------------------------------- ------------------
Non - current asset held
for sale g 2 216 500 2 225 300
------------------------------ ------ --------------------------------------------------- ------------------
Unquoted investments 83 749 82 513
-------------------------------------- --------------------------------------------------- ------------------
Deferred tax assets 2 379 151 1 368 429
-------------------------------------- --------------------------------------------------- ------------------
Investment properties f 3 020 300 3 115 300
------------------------------ ------ --------------------------------------------------- ------------------
Property and equipment 8 483 963 8 187 459
-------------------------------------- --------------------------------------------------- ------------------
------------- ------------
------------------------------ ------ --------------------------------------------------- ------------------
Total assets 265 219 915 226 093 528
-------------------------------------- --------------------------------------------------- ------------------
============= ============
------------------------------------- --------------------------------------------------- ------------------
NMB BANK LIMITED
STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2013
Capital Reserves
---------------------------- -------------- ------------------------------------- ---------------- ---------------
Share Capital Share Premium Regulatory Retained Total
Reserve Earnings
---------------------------- -------------- -------------- --------------------- ---------------- ---------------
US$ US$ US$ US$ US$
---------------------------- -------------- -------------- --------------------- ---------------- ---------------
13 690
Balances at 1 January 2012 16 501 931 1 023 431 6 116 397 20 847 260
---------------------------- -------------- -------------- --------------------- ---------------- ---------------
Total comprehensive income
for the six months - - - 2 319 440 2 319 440
---------------------------- -------------- -------------- --------------------- ---------------- ---------------
Impairment allowance
reversal
for loans and advances - - 254 707 (254 707) -
---------------------------- -------------- -------------- --------------------- ---------------- ---------------
-------- --------- -------- ------- --------
---------------------------- -------------- -------------- --------------------- ---------------- ---------------
13 690
Balances at 30 June 2012 16 501 931 1 278 138 8 181 130 23 166 700
---------------------------- -------------- -------------- --------------------- ---------------- ---------------
Shares issued 1 1 887 001 - - 1 887 002
---------------------------- -------------- -------------- --------------------- ---------------- ---------------
Total comprehensive income
for the six months - - - 5 329 962 5 329 962
---------------------------- -------------- -------------- --------------------- ---------------- ---------------
Impairment allowance for
loans and advances - - 1 023 545 (1 023 545) -
---------------------------- -------------- -------------- --------------------- ---------------- ---------------
-------- --------- -------- ------- -------
---------------------------- -------------- -------------- --------------------- ---------------- ---------------
Balances at 31 December 15 577
2012 16 502 932 2 301 683 12 487 547 30 383 664
---------------------------- -------------- -------------- --------------------- ---------------- ---------------
15 896
Shares issued 4 570 - - 15 896 574
---------------------------- -------------- -------------- --------------------- ---------------- ---------------
Total comprehensive income
for the six months - - - 2 179 216 2 179 216
---------------------------- -------------- -------------- --------------------- ---------------- ---------------
Impairment allowance for
loans and advances - - 2 114 005 (2 114 005) -
---------------------------- -------------- -------------- --------------------- ---------------- ---------------
-------- --------- -------- ------- --------
---------------------------- -------------- -------------- --------------------- ---------------- ---------------
31 474
Balances at 30 June 2013 16 506 502 4 415 688 12 552 758 48 459 454
---------------------------- -------------- -------------- --------------------- ---------------- ---------------
======== ======= ========== =========
=========
---------------------------- -------------- -------------- --------------------- ---------------- ---------------
NMB BANK LIMITED
STATEMENT OF CASH FLOWS
for the six months ended 30 June 2013
CASH FLOWS FROM OPERATING ACTIVITIES
------------------------------------------------ ------------- -------------
30 June 2013 30 June 2012
------------------------------------------------ ------------- -------------
US$ US$
------------------------------------------------ ------------- -------------
Reviewed Reviewed
------------------------------------------------ ------------- -------------
Profit before taxation 2 994 320 3 107 421
------------------------------------------------ ------------- -------------
Non-cash items
------------------------------------------------ ------------- -------------
-Impairment losses on loans, advances
and debentures 1 887 537 688 020
------------------------------------------------ ------------- -------------
-Investment properties fair value adjustment - (122 500)
------------------------------------------------ ------------- -------------
-Non - current assets held for sale fair 75 300 -
value adjustment
------------------------------------------------ ------------- -------------
-Profit on disposal of property and equipment - (725)
------------------------------------------------ ------------- -------------
-Quoted and other investments fair value
adjustment (1 237) (2 406)
------------------------------------------------ ------------- -------------
-Impairment reversal on land and buildings - (70 000)
------------------------------------------------ ------------- -------------
-Depreciation 865 224 634 736
------------------------------------------------ ------------- -------------
---------- ----------
------------------------------------------------ ------------- -------------
Operating cash flows before changes in
operating assets and liabilities 5 821 144 4 234 546
------------------------------------------------ ------------- -------------
Changes in operating assets and liabilities
------------------------------------------------ ------------- -------------
Deposits and other liabilities 21 353 382 11 466 696
------------------------------------------------ ------------- -------------
Amount owing from holding company 314 842 -
------------------------------------------------ ------------- -------------
Loans, advances and other accounts (33 205 251) (4 319 372)
------------------------------------------------ ------------- -------------
Investment securities held to maturity (76 107) (5 425 534)
------------------------------------------------ ------------- -------------
Investment in debentures (3 984 723) -
------------------------------------------------ ------------- -------------
---------- ---------
------------------------------------------------ ------------- -------------
(9 776 713) 5 956 336
------------------------------------------------ ------------- -------------
---------- ---------
------------------------------------------------ ------------- -------------
Taxation
------------------------------------------------ ------------- -------------
Corporate tax paid (2 127 185) (1 758 010)
------------------------------------------------ ------------- -------------
Capital gains tax paid (1 425) -
------------------------------------------------ ------------- -------------
---------- ---------
------------------------------------------------ ------------- -------------
Net cash (outflow)/ inflow from operating
activities (11 905 323) 4 198 326
------------------------------------------------ ------------- -------------
---------- ---------
------------------------------------------------ ------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES
------------------------------------------------ ------------- -------------
Proceeds on disposal of property and equipment - 9 003
------------------------------------------------ ------------- -------------
Purchase of property and equipment (1 161 728) (1 228 446)
------------------------------------------------ ------------- -------------
Proceeds on disposal of non - current 28 500 -
assets held for sale
------------------------------------------------ ------------- -------------
----------- ---------
------------------------------------------------ ------------- -------------
Net cash outflow from investing activities (1 133 228) (1 219 443)
------------------------------------------------ ------------- -------------
---------- ---------
------------------------------------------------ ------------- -------------
Net cash (outflow)/inflow before financing
activities (13 038 551) 2 978 883
------------------------------------------------ ------------- -------------
---------- ---------
------------------------------------------------ ------------- -------------
CASHFLOWS FROM FINANCING ACTIVITIES
------------------------------------------------ ------------- -------------
Issue of shares 15 896 574 -
------------------------------------------------ ------------- -------------
---------- ---------
------------------------------------------------ ------------- -------------
Net cash inflow from financing activities 15 896 574 -
------------------------------------------------ ------------- -------------
---------- ---------
------------------------------------------------ ------------- -------------
Net increase in cash and cash equivalents 2 858 023 2 978 883
------------------------------------------------ ------------- -------------
Cash and cash equivalents at the beginning
of the period 58 171 045 32 265 953
------------------------------------------------ ------------- -------------
---------- ---------
------------------------------------------------ ------------- -------------
Cash and cash equivalents at the end of
the period (note e) 61 029 068 35 244 836
------------------------------------------------ ------------- -------------
========== =========
------------------------------------------------ ------------- -------------
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
for the six months ended 30 June 2013
There are no material differences between the Bank and the
Holding company as the Bank is the principal operating subsidiary
of the Group. The notes to the financial statements under NMBZ
Holdings Limited are therefore the same as those of the Bank in
every material respect.
a. NON-INTEREST income
30 June 2013 30 June 2012
---------------------------------------------- ------------- -------------
US$ US$
---------------------------------------------- ------------- -------------
Investment property fair value adjustment - 122 500
---------------------------------------------- ------------- -------------
Non - current assets held for sale fair (75 300) -
value adjustments
---------------------------------------------- ------------- -------------
Unquoted investments fair value adjustments 1 237 2 406
---------------------------------------------- ------------- -------------
Commission and fee income 7 590 765 6 556 955
---------------------------------------------- ------------- -------------
Profit on disposal of property and equipment - 725
---------------------------------------------- ------------- -------------
Other net operating income 19 418 12 555
---------------------------------------------- ------------- -------------
--------- ---------
---------------------------------------------- ------------- -------------
7 536 120 6 695 141
---------------------------------------------- ------------- -------------
========= =========
---------------------------------------------- ------------- -------------
b. Operating EXPENDITURE
30 June 2013 30 June 2012
---------------------------------------- ------------- -------------
US$ US$
---------------------------------------- ------------- -------------
The operating profit is after charging
the following:-
---------------------------------------- ------------- -------------
Administration costs 6 637 891 5 076 333
---------------------------------------- ------------- -------------
Staff costs - salaries, allowances and
related costs 5 506 087 4 849 326
---------------------------------------- ------------- -------------
Depreciation 865 224 634 736
---------------------------------------- ------------- -------------
Impairment reversal on land, buildings
and other property - (70 000)
---------------------------------------- ------------- -------------
---------- ----------
---------------------------------------- ------------- -------------
Total 13 009 202 10 490 395
---------------------------------------- ------------- -------------
========== ==========
---------------------------------------- ------------- -------------
c. EARNINGS PER SHARE
The calculation of earnings per share is based on the following
figures:
c.1 Earnings
30 June 2013 30 June 2012
------- ------------- -------------
US$ US$
------- ------------- -------------
Basic 2 179 216 2 319 440
------- ------------- -------------
c.2 Number of shares
Weighted average shares in issue 16 501 075 16 501 000
---------------------------------- ----------- -----------
c.3 Earnings per share (US cents)
Basic 13.21 14.06
------- ------ ------
d. SHARE CAPITAL
d.1 Authorised
The authorised ordinary share capital at 30 June 2013 is at the
historical cost figure of US$25 000 (2012 -US$25 000) comprising 25
million ordinary shares of US$0.001 each.
d.2 Issued and fully paid
The issued share capital at 30 June 2013 is at the historical
cost figure of US$16 506 (2012 - US$16 502) comprising 16.506
million ordinary shares of US$0.001 each
e. CASH AND CASH EQUIVALENTS
30 June 2013 31 December 2012
----------------------------------- ------------- -----------------
US$ US$
----------------------------------- ------------- -----------------
Balances with the Central Bank 6 988 836 22 671 712
----------------------------------- ------------- -----------------
Current, nostro accounts and cash 18 040 232 14 999 333
----------------------------------- ------------- -----------------
Interbank placements 36 000 000 20 500 000
----------------------------------- ------------- -----------------
---------- ----------
----------------------------------- ------------- -----------------
61 029 068 58 171 045
----------------------------------- ------------- -----------------
========== =========
----------------------------------- ------------- -----------------
f. INVESTMENT PROPERTIES
30 June 2013 31 December 2012
----------------------------------- ---------------- -----------------
US$ US$
----------------------------------- ---------------- -----------------
Balance at 1 January 3 115 300 2 510 000
----------------------------------- ---------------- -----------------
Additions - 291 890
----------------------------------- ---------------- -----------------
Transfers to non - current assets
held for sale (95 000) (2 225 300)
----------------------------------- ---------------- -----------------
Fair value adjustments - 2 538 710
----------------------------------- ---------------- -----------------
--------------- ---------------
----------------------------------- ---------------- -----------------
Balance 3 020 300 3 115 300
----------------------------------- ---------------- -----------------
========= =========
----------------------------------- ---------------- -----------------
Rental income amounting to US$18 954 (2012 - US$6 600) was
received and no operating expenses were incurred on the investment
properties in the current period due to the net leasing
arrangements on the properties.
The Bank has no restrictions on the realisability of all
investment properties and no contractual obligations to purchase,
construct or develop the investment properties or for repairs,
maintenance and enhancements.
Investment properties are stated at fair value, as at 30 June
2013. The fair value of the investment properties at 30 June 2013
was arrived at on the basis of directors' valuation on an open
market value method.
g. NON - CURRENT ASSETS HELD FOR SALE
30 June 2013 31 December 2012
-------------------------------------- --------------- -----------------
US$ US$
-------------------------------------- --------------- -----------------
Carrying amount as at 1 January 2 225 300 -
-------------------------------------- --------------- -----------------
Transfers from investment properties 95 000 2 225 300
-------------------------------------- --------------- -----------------
Fair value adjustments (75 300) -
-------------------------------------- --------------- -----------------
Disposals (28 500) -
-------------------------------------- --------------- -----------------
-------------- --------------
-------------------------------------- --------------- -----------------
2 216 500 2 225 300
-------------------------------------- --------------- -----------------
========= =========
-------------------------------------- --------------- -----------------
Land with a fair value of US$95 000 was transferred to non
-current assets held for sale. Some of the land with a fair value
of US$28 500 was disposed off during the period for a consideration
of US$28 500. As at 30 June 2013 a directors' valuation of an
investment property resulted in a fair valuation loss of US$75
300.
h. CORPORATE GOVERNANCE AND RISK MANAGEMENT
1. RESPONSIBILITY
These condensed financial statements are the responsibility of
the directors. This responsibility includes the setting up of
internal control and risk management processes, which are monitored
independently. The information contained in these condensed
financial statements has been prepared on the going concern basis
and is in accordance with the provisions of the Companies Act
(Chapter 24:03), the Banking Act (Chapter 24:20) and International
Financial Reporting Standards.
2. CORPORATE GOVERNANCE
The Group adheres to principles of corporate governance derived
from the King II Report, the United Kingdom Combined Code and RBZ
Corporate Governance Guidelines. The Group is cognisant of its duty
to conduct business with due care and in good faith in order to
safeguard all stakeholders' interests.
3. BOARD OF DIRECTORS
Board appointments are made to ensure a variety of skills and
expertise on the Board. Non-executive directors are of such calibre
as to provide independence to the Board. The Chairman of the Board
is an independent non-executive director. The Board is supported by
mandatory committees in executing its responsibilities. The Board
meets at least quarterly to assess risk, review performance and
provide guidance to management on both operational and policy
issues.
The Board conducts an annual peer based evaluation on the
effectiveness of its activities. The process involves the members
evaluating each other collectively as a board and individually as
members. The evaluation, as prescribed by the RBZ, takes into
account the structure of the board, effectiveness of committees,
strategic leadership, corporate social responsibility, attendance
and participation of members and weaknesses noted. Remedial plans
are invoked to address identified weaknesses with a view to
continually improve the performance and effectiveness of the Board
and its members.
3.1 Directors' attendance at NMB Bank Limited Board meetings
Human
Asset and Resources,
Liability Remuneration
Risk Management Loans and
Board of Audit Management Committee Review Nominations Credit
Directors Committee Committee (ALCO) Committee Committee Committee
Finance
& Strategy
Committee
----------------- ------------- ------------- -------------- -------------- ------------- --------------- -------------
T N Mundawarara 2 2 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
A M T Mutsonziwa 2 2 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
J A Mushore 2 2 2 1 2 1 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
F Zimuto 2 2 2 2 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
B Ndachena 2 2 2 2 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
B W Madzivire 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
L Majonga (Ms) 2 2 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
J Chigwedere 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
J de la Fargue* 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
J Chenevix -
Trench* 2 2 2 2 2 1 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
B P Washaya 2 2 2 2 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
F S Mangozho 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
L
Chinyamutangira 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
Meetings planned
-----------------
KEY
*Mr J de la Fargue is an alternate director to Mr J Chenevix -
Trench on the ALCO, Finance and Strategy Committee
4. RISK MANAGEMENT
The Board of Directors has overall responsibility for the
establishment and oversight of the Group's risk management
framework. The Board has established the Board Asset and Liability
Management Committee (ALCO) and Board Risk Committee, which are
responsible for defining the Bank's risk universe and risk
appetite, developing policies and monitoring implementation. The
Bank has a Risk Management department, which reports to the
Managing Director and is responsible for the management of the
Bank's overall risk universe. The Bank has complied with the
implementation timelines for key Basel II implementation milestones
contained in the Reserve Bank of Zimbabwe Action Plan issued in
July 2011.
Risk management is linked logically from the level of individual
transactions to the Bank level. Risk management activities broadly
take place simultaneously at the following different hierarchy
levels:
a) Strategic Level: This involves risk management functions
performed by senior management and the board of directors. It
includes the definition of risk, ascertaining the Bank's risk
appetite, formulating strategy and policy for managing risk and
establishes adequate systems and controls to ensure overall risk
remains within acceptable levels and is adequately compensated.
b) Macro Level: It encompasses risk management within a business
area or across business lines. These risk management functions are
performed by middle management.
c) Micro Level: This involves "On-the-line" risk management
where risks are actually created. These are the risk management
activities performed by individuals who assume risk on behalf of
the organization such as Treasury Front Office, Corporate Banking,
Retail Banking e.t.c. The risk management in these areas is
confined to operational procedures set by management.
Risk management is premised on four (4) mutually reinforcing
pillars, namely:
a) adequate board and senior management oversight;
b) adequate strategy, policies, procedures and limits;
c) adequate risk identification, measurement, monitoring and information systems; and
d) comprehensive internal controls and independent reviews.
4.1 Credit risk
Credit risk is the risk that a financial contract will not be
honoured according to the original set of terms. The risk arises
when borrowers or counterparties to a financial instrument fail to
meet their contractual obligations. The Board has put in place
sanctioning committees with specific credit approval limits. The
Credit Risk Management department does the initial review of all
applications before passing them on to the Executive Credit
Committee and finally Board Credit Committee depending on the loan
amount. The Bank has in place a Board Loans Review Committee
responsible for reviewing the quality of the loan book.
The Credit Risk Management department is responsible for
implementing the group's credit risk policies and standards and
this includes:
-- Formulating credit policies in consultation with business
units, covering collateral requirements, credit assessment, risk
grading and reporting, documentary and legal procedures, and
compliance with regulatory and statutory requirements ;
-- Establishing the authorization structure for the approval and
renewal of credit facilities. Facilities require authorization by
the Risk Management Committee, Executive Committee or the Board
Credit Committee depending on amount as per set limits;
-- The Credit Risk Management department assesses all credit
exposures in excess of designated limits, prior to facilities being
committed to clients by the business unit concerned. Renewals and
reviews of facilities are subject to the same review process,
-- Limiting concentrations of exposure to counter parties and industry for loans and advances;
-- Maintaining and monitoring the risk grading as per the RBZ
requirement in order to categorize exposures according to the
degree of risk of financial loss faced and to focus management on
the attendant risks.
-- Reviewing compliance of business units with agreed exposure
limits, including those for selected industries; and
-- Providing advice, guidance and specialist skills to business
units to promote best practice throughout the Group in the
management of credit risk.
4.2 Market risk
This is the exposure of the Bank's on and off balance sheet
positions to adverse movement in market prices resulting in a loss
in earnings and capital. The market prices will range from interest
rates, foreign exchange and equity prices. The Bank has in place a
Management Asset and Liability Committee (ALCO) which monitors
market risk and recommends the appropriate levels to which the Bank
should be exposed at any time. The Net Interest Margin and Interest
Rate Repricing gaps form the primary measure of interest rate risk,
supported by periodic stress tests to assess the Bank's ability to
withstand stressed market conditions. On foreign exchange risk, the
Bank monitors currency mismatches and makes adjustments depending
on exchange rate movement forecast. The mismatches are also
contained within 10% of the Bank's capital.
ALCO meets on a monthly basis and operates within the prudential
guidelines and policies established by the Board ALCO. The Board
ALCO is responsible for setting exposure thresholds and limits, and
meets on a quarterly basis.
4.3 Liquidity risk
Liquidity risk is the risk of financial loss arising from the
inability of the Bank to fund asset increases or meet obligations
as they fall due without incurring unacceptable costs or losses.
The Bank identifies this risk through maturity profiling of assets
and liabilities and assessment of expected cash flows and the
availability of collateral which could be used if additional
funding is required.
The Bank uses the following tools and techniques in the
management of liquidity risk:
a) Daily Cash flow Monitoring:
b) Liquidity Gap Analysis;
c) Benchmarks and Ratios; and
d) Liquidity Stress Testing.
The daily liquidity position is monitored and regular liquidity
stress testing is conducted under a variety of scenarios covering
both normal and more severe market conditions. The Bank has a
Contingency Liquidity Plan which covers both a name specific crisis
and market wide crisis. All liquidity policies and procedures are
subject to review and approval by the Board.
Liquidity risk is monitored through a daily treasury strategy
meeting. This is augmented by a monthly management ALCO and a
quarterly board ALCO. The Bank monitors its liquidity ratio in
compliance with Banking Regulations to ensure that it is above the
30% threshold set by the regulatory authorities.
4.4 Operational risk
This risk is inherent in all business activities and is the risk
of loss arising from inadequate or failed internal processes,
people, systems or from external events. The Bank has an
Operational Risk Loss Tracker System (OLTS) in which any incident
with a potential loss to the Bank or could affect the Bank's
reputation is recorded within 24 hours of occurrence. This forms
the Bank's operational loss database which is then used for
operational risk modeling and improvement in controls. The Bank
also uses Key Risk Indicator reports which are received by the Risk
department from various operational units on a monthly basis and
are used to detect adverse trends in key indicators and are
reported to the board on a quarterly basis.
The risk department conducts periodic risk assessments on all
the units within the Bank aimed at identifying the top risks and
ways to minimise their impact. There is a Board Risk Committee
whose function is to ensure that this risk is minimized. The Risk
Committee with the assistance of the internal audit function and
the Risk.
Management department assesses the adequacy of the internal
controls and makes the necessary recommendations to the Board.
4.5 Legal Risk
Legal risk is risk from uncertainty due to legal actions or
uncertainty in the applicability or interpretation of contracts,
laws or regulations. Legal risk may entail such issues as contract
formation, capacity and contract frustration.
The Legal and Corporate Affairs Department is responsible for
managing litigation and analysing emerging legal trends, statues
and regulations that may impact on the operations of the Bank. The
department is responsible for coordinating the flow of information
with a legal bearing to all business units of the Bank. All
business units are required to liaise with the department on every
legal matter or issues with a legal impact. Permanent relationships
are also maintained with firms of legal practitioners and access to
legal advice is readily available to all departments.
4.6 Compliance Risk
Compliance risk is the risk arising from non-compliance with
laws and regulations. The Bank has an independent compliance
function which is responsible for identifying and monitoring all
compliance issues and ensures the Bank complies with regulatory and
statutory requirements.
The compliance function conducts compliance monitoring
activities such as compliance visits, reviews, snap checks,
training and reporting compliance risk to senior management and the
Board.
4.7 Reputational risk
Reputation risk is the risk of loss of business as a result of
negative publicity or negative perceptions by the market with
regards to the way the Bank conducts its business. To manage this
risk, the Bank strictly monitors customers' complaints,
continuously train staff at all levels, conducts market surveys and
periodic reviews of business practices through its internal audit
department. The Bank is active on the Social Responsibility front
supporting various social responsibility programs.
The Bank maintains Complaints Registers at all the branches
wherein all customer grievances or concerns are recorded and date
of resolution annotated.
Monthly customer complaints returns are submitted to the
Compliance Unit for monitoring and tracking of resolutions
recommended. All incidents with a potential impact on the Bank's
reputation are reported to the Risk & Compliance Department
within 24 hours of occurrence and appropriate action is taken to
protect the Bank's reputation. All legal cases and litigations are
reviewed and reported to the Board Risk Committee, including the
possible impact on the Bank's reputation. Media reports are
monitored on a daily basis and any such reports with an adverse
impact on the Bank's reputation are responded to appropriately.
4.8 Strategic risk
This refers to current and prospective impact on a Bank's
earnings and capital arising from adverse business decisions or
implementing strategies that are not consistent with the internal
and external environment. To manage this risk, the Bank always has
a strategic plan that is adopted by the board of directors.
Further, attainment of strategic objectives by the various
departments is monitored periodically at management level. Further,
there is an ALCO, Finance and Strategy Committee at board level
responsible for monitoring overall progress towards attaining
strategic objectives for the Bank.
The directors are satisfied with the risk management processes
in the Bank as these have contributed to the minimisation of losses
arising from risky exposures.
4.9 External credit ratings
The external credit ratings were given by Global Credit Rating
(GCR), a credit rating agency accredited with the Reserve Bank of
Zimbabwe.
Security class 2012
Long term BBB-
5. REGULATORY COMPLIANCE
There were no instances of regulatory non - compliance in the
period under review. The Bank remains committed to complying with
and adhering to all regulatory requirements.
6. CAPITAL MANAGEMENT
The primary objective of the Bank's capital management is to
ensure that the Bank complies with the RBZ requirements. In
implementing the current capital requirements, the RBZ requires the
Bank to maintain a prescribed ratio of total capital to total risk
weighted assets.
Regulatory capital consists of Tier 1 capital, which comprises
share capital, share premium, retained earnings (including current
year profit), statutory reserve and other equity reserves.
The other component of regulatory capital is Tier 2 capital,
which includes subordinated term debt, revaluation reserves and
portfolio provisions.
Tier 3 capital relates to an allocation of capital to market and
operational risk.
Various limits are applied to elements of the capital base. The
core capital (Tier 1) shall comprise not less than 50% of the
capital base and portfolio provisions are limited to 1.25% of total
risk weighted assets.
The Bank's regulatory capital position at 30 June 2013 was as
follows:
30 June 2013 31 December
2012
----------------------------------------------- ------------------ ----------------------
US$ US$
----------------------------------------------- ------------------ ----------------------
Share capital 16 506 16 502
----------------------------------------------- ------------------ ----------------------
Share premium 31 474 502 15 577 932
----------------------------------------------- ------------------ ----------------------
Retained earnings 12 552 758 12 487 547
----------------------------------------------- ------------------ ----------------------
Fair value gain on investment property (2 340 240) (2 411 775)
----------------------------------------------- ------------------ ----------------------
----------------- -------------
----------------------------------------------- ------------------ ----------------------
41 703 526 25 670 206
----------------------------------------------- ------------------ ----------------------
Less: capital allocated for market and
operational risk (1 118 388) (1 198 520)
----------------------------------------------- ------------------ ----------------------
Credit to insiders (5 591 608) (2 231 128)
----------------------------------------------- ------------------ ----------------------
----------------- -------------
----------------------------------------------- ------------------ ----------------------
Tier 1 capital 34 993 530 22 240 558
----------------------------------------------- ------------------ ----------------------
Tier 2 capital (subject to limit as per
Banking
regulations) 6 452 577 4 819 193
----------------------------------------------- ------------------ ----------------------
Revaluation reserve 2 340 240 2 411 775
----------------------------------------------- ------------------ ----------------------
Subordinated debt 1 400 000 -
----------------------------------------------- ------------------ ----------------------
Regulatory reserve (limited to 1.25%
of risk
weighted assets) 2 712 337 2 301 683
----------------------------------------------- ------------------ ----------------------
Portfolio provisions (limited to 1.25%
of risk
weighted assets) - 105 735
----------------------------------------------- ------------------ ----------------------
Total Tier 1 & 2 capital 41 446 107 27 059 751
----------------------------------------------- ------------------ ----------------------
Tier 3 capital (sum of market and operational
risk capital) 1 118 388 1 198 520
----------------------------------------------- ------------------ ----------------------
----------------- -------------
----------------------------------------------- ------------------ ----------------------
Total capital base 42 564 495 28 258 271
----------------------------------------------- ------------------ ----------------------
=========== ========
----------------------------------------------- ------------------ ----------------------
Total risk weighted assets 231 452 058 182 361 802
----------------------------------------------- ------------------ ----------------------
=========== ========
----------------------------------------------- ------------------ ----------------------
Tier 1 ratio 15.12% 12.20%
----------------------------------------------- ------------------ ----------------------
Tier 2 ratio 2.79% 2.64%
----------------------------------------------- ------------------ ----------------------
Tier 3 ratio 0.48% 0.66%
----------------------------------------------- ------------------ ----------------------
Total capital adequacy ratio 18.39% 15.50%
----------------------------------------------- ------------------ ----------------------
RBZ minimum required 12.00% 12.00%
----------------------------------------------- ------------------ ----------------------
NMB BANK LIMITED
5. SEGMENT INFORMATION
For management purposes, the Bank is organised into four
operating segments based on products and
services as follows:
Retail Banking - Individual customers deposits and consumer
loans, overdrafts, credit card facilities and funds transfer
facilities.
Corporate Banking - Loans and other credit facilities and deposit and current accounts for corporate and institutional customers.
Treasury - Money market investment, securities trading, accepting and discounting of
instruments and foreign currency trading.
International Banking - Handles the Bank's foreign currency denominated banking business and manages relationships with correspondent banks.
Management monitors the operating results of its business units
separately for the purpose of making decisions about resource
allocation and performance assessment. Segment performance is
evaluated based on operating profit or loss which in certain
respects is measured differently from operating profit or loss in
the financial statements. Income taxes are managed on a bank - wide
basis and are not allocated to operating segments.
Interest income is reported net as management primarily relies
on net interest revenue as a performance measure not the gross
income and expense.
Transfer prices between operating segments are on arm's length
basis in a manner similar to transactions with third parties.
No revenue from transactions with a single external customer or
counterparty amounted to 10% or more of the Bank's total revenue in
2013 and 2012.
The following tables present income and profit and certain asset
and liability information regarding the bank's operating segments
and service units:
For the six months ended 30 June 2013
Retail Corporate Banking Treasury International Leasing Unallocated Total
Banking Banking
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
US$ US$ US$ US$ US$ US$ US$
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
Income
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
10 770
Third party 870 10 397 840 2 232 510 820 236 123 804 156 511 24 501 771
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
Inter - - - - - - - -
segment
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
------- -------- -------- ----------- ------- --------- ---------
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
Total
operating 10 770
income 870 10 397 840 2 232 510 820 236 123 804 156 511 24 501 771
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
-------- ---------- --------- ----------- ------- ---------- ---------
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
Impairment
losses on
loans
advances and
debentures (352 094) (1 535 443) - - - - (1 887 537)
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
------- ----------- -------- --------- ------- --------- ---------
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
Net operating 10 418
income 776 8 862 397 2 232 510 820 236 123 804 156 511 22 614 234
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
-------- ----------- -------- ---------- -------- ---------- ---------
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
Results
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
Interest and
similar
income 6 193 946 8 720 435 1 061 013 - 123 804 - 16 099 198
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
Interest and
similar (1 081
expense 104) (4 982 657) (546 951) - - - (6 610 712)
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
-------- ----------- --------- ----------- -------- ---------- ---------
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
Net interest
income 5 112 842 3 737 778 514 062 - 123 804 - 9 488 486
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
-------- ----------- -------- ---------- -------- --------- ---------
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
Fee and
commission
income 6 503 259 267 400 - 820 106 - - 7 590 765
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
Fee and
commission
expense - - - - (24 761) - (24 761)
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
-------- ----------- --------- ----------- -------- --------- ---------
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
Net fees and
commission
income 6 503 259 267 400 - 820 106 (24 761) - 7 566 004
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
-------- ----------- --------- ----------- -------- ---------- ---------
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
Depreciation
of property
and
equipment 344 989 64 588 15 873 23 372 - 416 402 865 224
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
Segment
profit/
(loss) 1 626 455 632 637 443 623 77 767 99 043 114 795 2 994 320
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
Income tax
expense - - - - - (815 104) (815 104)
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
-------- ---------- -------- ----------- -------- ---------- --------
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
Profit/(loss)
for the
period 1 626 455 632 637 443 623 77 767 99 043 (700 309) 2 179 216
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
========== ======== ======== ======= ======== ========= ==========
--------------- ------------ -------------------- ---------- -------------- --------- ------------ --------------
For the six months ended 30 June 2013
Retail Corporate Banking Treasury International Leasing Unallocated Total
Banking Banking
------------------ --------- ------------------ ----------- -------------- ---------- ------------ ------------
US$ US$ US$ US$ US$ US$ US$
------------------ --------- ------------------ ----------- -------------- ---------- ------------ ------------
Assets and
Liabilities
------------------ --------- ------------------ ----------- -------------- ---------- ------------ ------------
Capital
expenditure 635 654 1 486 130 489 10 551 - 383 548 1 161 728
------------------ --------- ------------------ ----------- -------------- ---------- ------------ ------------
45 890
Total assets 760 149 825 238 61 718 631 158 111 2 518 934 5 108 241 265 219 915
------------------ --------- ------------------ ----------- -------------- ---------- ------------ ------------
Total liabilities 48 974
and capital 008 99 464 620 61 936 262 - 2 518 934 52 326 091 265 219 915
------------------ --------- ------------------ ----------- -------------- ---------- ------------ ------------
For the six months ended 30 June 2012
Retail Corporate Banking Treasury International Unallocated Total
Banking Banking
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
US$ US$ US$ US$ US$ US$
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
Income
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
Third party 7 481 083 9 515 248 1 352 964 654 194 129 564 19 133 053
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
Inter - segment - - - - - -
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
-------- ---------- --------- ----------- ---------- ---------
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
Total operating income 7 481 083 9 515 248 1 352 964 654 194 129 564 19 133 053
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
Impairment losses on loans
and advances (87 064) (600 956) - - - (688 020)
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
-------- ---------- --------- --------- ---------- ---------
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
Net operating income 7 394 019 8 914 292 1 352 964 654 194 129 564 18 445 033
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
-------- ---------- --------- ---------- ---------- ---------
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
Results
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
Interest and similar
income 2 319 785 8 989 529 447 830 - - 11 757 144
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
Interest and similar
expense (945 547) (3 612 876) (297 416) - - (4 855 839)
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
-------- ---------- --------- ----------- ---------- ---------
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
Net interest income 1 374 238 5 376 653 150 414 - - 6 901 305
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
-------- ---------- --------- ----------- --------- ---------
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
Fee and commission income 4 995 567 787 536 - 654 194 119 658 6 556 955
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
Fee and commission expense - - - - - -
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
-------- ---------- --------- ----------- ---------- ---------
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
Net fees and commission
income 4 995 567 787 536 - 654 194 119 658 6 556 955
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
-------- ---------- --------- ----------- ---------- --------
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
Depreciation of property
and
equipment 273 360 45 871 10 611 6 198 298 696 634 736
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
Segment profit/ (loss) 2 117 064 4 031 864 975 342 154 699 (4 171 548) 3 107 421
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
Income tax expense - - - - (787 981) (787 981)
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
--------- ------------- -------- ---------- ---------- --------
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
Profit/(loss) for the
period 2 117 064 4 031 864 975 342 154 699 (4 959 529) 2 319 440
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
========== ======== ======== ======= ========== ==========
--------------------------- ----------- -------------------- ---------- -------------- ------------ ------------
For the six months ended 30 June 2012
Retail Corporate Banking Treasury International Unallocated Total
Banking Banking
------------------------------ --------- ------------------ ----------- -------------- ------------ ------------
US$ US$ US$ US$ US$ US$
------------------------------ --------- ------------------ ----------- -------------- ------------ ------------
Assets and Liabilities
------------------------------ --------- ------------------ ----------- -------------- ------------ ------------
Capital expenditure 313 916 105 930 9 553 40 699 758 348 1 228 446
------------------------------ --------- ------------------ ----------- -------------- ------------ ------------
40 466
Total assets 863 111 121 307 14 849 230 40 699 11 354 978 177 833 077
------------------------------ --------- ------------------ ----------- -------------- ------------ ------------
51 732
Total liabilities and capital 968 53 963 981 44 872 277 - 27 263 851 177 833 077
------------------------------ --------- ------------------ ----------- -------------- ------------ ------------
8. GEOGRAPHICAL INFORMATION
The Group operates in one geographical market, Zimbabwe
Registered Offices
1(st) Floor NMB Centre
Unity Court George Silundika Avenue/
Cnr 1(st) Street/Kwame Nkrumah Avenue Leopold Takawira Street
Harare Bulawayo
Zimbabwe Zimbabwe
Telephone +263 4 759651 +263 9 70169
Facsimile +263 4 759648 +263 9 68535
Website: http://www.nmbz.co.zw
Email: enquiries@nmbz.co.zw
Transfer Secretaries
In Zimbabwe In UK
First Transfer Secretaries Computershare Services PLC
1 Armagh Avenue 36 St Andrew Square
(Off Enterprise Road) Edinburgh
Eastlea EH2 2YB
P O Box 11 UK
Harare
Zimbabwe
This information is provided by RNS
The company news service from the London Stock Exchange
END
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