[Updated] NMB Bank opens branch in Bindura, net interest income up 30pc YTD

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HARARE – NMB Bank has opened a sub-branch in Bindura to provide existing and potential customers in Mashonaland Central with ready access to its banking services and products. The sub-branch opened for business earlier this month.

The sub-branch, which is located at number 8 Matuka Complex, 846 Chenjerai Hunzvi Street, is the first of a number of sub-branches that NMB intends to open in various towns around the country.

NMB Bank chief executive officer Ben Washaya said most banking transactions are being conducted electronically these days, with services and products paid for with a debit card or through internet or mobile banking.

However, the bank felt there was need, as a value added service, to establish sub-branches to provide advice and support services where required and so that customers do not have to travel long distances for those few transactions that require a branch visit.

“While it is seldom necessary to visit a bank these days, with most transactions occurring online, we felt that it would be good to open a sub-branch in Bindura, where we have many customers, so that there is a banking hall nearby and ready access to advice, support and assistance, when needed,” he said.

“The sub-branch will service the entire province, providing banking services and support to our existing and potential clients in Bindura and the whole of Mashonaland Central.

“This is the first of a number of sub-branches the bank intends to establish in various centres. The convenience of internet banking, mobile banking and card transactions means that we do not get to see our clients as often as we used to when most transactions required a visit to the bank.

“However, we feel there may be times when our customers would like advice and assistance from a banking official they can sit down and talk to. We feel there is still need for that human interaction at a branch or sub-branch that is conveniently located and accessible”.

“Hence our establishment of a sub-branch in Bindura and our decision to establish more of these in other places,” he said.

MEANWHILE – NMB Zimbabwe net interest income for for the for months of 2018 increased 30 percent compared to the same period last year

Washaya told the group’s Annual General Meeting that the increase in net income was driven by an 18 percent jump in interest income and a 13 percent reduction in interest expense.

As a result, the operating income for the period of $19,2 million increased by 53 percent when compared to the same period last year.

 “The 83 percent  increase in non-interest income  resulted lagely  from increased transactional revenues due to the increase in the number of accounts and the migration nof transactional activity to the digital platforms,” he said.

Operating expenses for the four months to April 30, 2018 increased 14 percent due to information technology related  costs and depreciation associated with the IT systems upgrade.

The cost to income ratio for the period under review was 55 percent compared to 73 percent recorded in the four months ended April 2017 due to an  increase in operating income.

The bank’s non-perfoming loans ratio reduced to 6,62 percent during the four months from 12,82 percent due to aggressive collections.

“We are confident that we will achieve our target of five percent by December 31, 2018,” said Washaya.