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LISTED financial services firm, NMB Holdings has secured a $5 million loan facility from a “regional finance house”, CEO Mr Ben Washaya has said. The facility is targeted at players in the productive sectors of the economy, as well as small-to-medium enterprises.

“On May 17, a regional finance house approved a $5 million line of credit for us and the line will shortly be available for draw down by productive sector clients, including SMEs,” Mr Washaya told the group’s shareholders yesterday.

The latest loan facility comes on the back of the syndicated $15 million loan facility that NMB secured from two European development finance institutions (DFIs), which was aimed at exporters in the country. Drawdown of the $15 million facility is yet to commence although the facility is now ready. “The line is available for draw down by exporting customers,” said the CEO.

Meanwhile, in respect of the group’s performance for the first four months of the year, Mr Washaya noted that its operating income for the four-months to April 30, 2017 stood at $12, 6 million, down eight percent from the same period last year.

He attributed this to constrained lending. Operating expenses for the period under review rose two percent “mainly due to a once-off cost in the four months,” adding that without the once-off cost operating expenses would have declined by two percent. The group is however optimistic of improved first half performance, which will dovetail into the rest of the year.

“Based on our trajectory so far, we are projecting a June 30, 2017 half year performance that is higher than what was recorded during the same period last year,” said Mr Washaya.

“Barring a significant deterioration in the economy, we expect 2017 to surpass the 2016 performance as we are currently operating above our PAT (profit after tax) budget.”

NMB’s total deposits for the four-months period rose two percent to $262, 4 million with 58 percent being the cheaper demand deposits. Loans and advances recorded a slight decline of 1 percent to close at $202, 3 million compared to the December 31, 2016 figure.

Cost-to-income ratio for the period under review improved to 73 percent compared to 75 percent in the prior comparable period. — BH24.