NMB moves to protect balance sheet
LIVINGSTONE MARUFU
Listed financial services provider NMBZ has moved to protect its balance sheet by creating microfinance, property and technological divisions.
CEO Gerald Gore said broadening the group would help “us to protect the balance sheet as various subsidiaries will cover each other”.
“When microfinance is not doing well, the bank covers for it and when the bank is not doing well the property unit will cover for it. And this will protect us against a volatile, uncertain, complex, and ambiguous environment,” Gore said.
He also said the company technology can be sold for a great deal of money as various banks in the region want the top-of-the-range technology and this is an opportunity for NMB.
NMBZ established a microfinance unit targeting to provide more focused services to individuals and micro businesses. A technology services division was also set up and is in various discussions with several banks in the region where it will become their technology partner to drive their digital transformation agendas.
Gore said the new divisions have opened up new markets for the group and have a clear vision of how to establish themselves as formidable players in their domains.
He said all the group’s divisions are adequately capitalised and capacitated to pursue their strategic goals.
In its financial results for the 12 months to December 31,2022, NMBZ reported an 87% profit increase to ZWL$12bn from ZWL$6.4bn for the previous year.
Total income for the group was ZWL$12.5bn during the reviewed period, which was a 62% increase from ZWL$7.7bn reported in the previous year.
Operating costs, however, increased by 57% to ZWL$19bn in the reviewed period from ZWL$12.1bn reported in 2021.
The group grew its loan book by 40% in the period under review to ZWL$46.3bn from ZWL$42.5bn in 2021.
Gore said the group partnered with Zimpost during the period under review, making it accessible in over 100 Zimpost branches countrywide from 13.
“We believe such partnerships are key for us to deliver services that require a physical touch point. The agency arrangement has also assisted in decongesting our branches, complemented by our efficient digital service delivery platforms,” he said.
NMBZ is also negotiating a US$53m line of credit with five unnamed offshore funders for onward lending to the productive sector.
NMB is expecting “to get that amount before the end of the year” and disburse it to small-scale exporters.
He said the lines of credit are at different levels as some (funders) came (to Harare) for due diligence and some for term sheets.
