Zimpapers Logo

Oliver Kazunga  Senior Business Reporter
INVESTMENT holding firm, NMBZ Holdings, has posted a net profit of $1,6 million for the year ended December 31, 2014 from a $3,3 million loss reported in prior year on the back of cost reduction and a good loan book.In a statement for the period under review, chairman Tawanda Mundawarara said the improvement in operating results was underpinned by present efforts to contain non-performing loans.

“The improvement in operating results was underpinned by the current efforts being made by the group to contain non–performing loans, implementation of a new credit system and the repositioning of the bank in the financial services sector,” he said.

Mundawarara said the group recorded an attributable profit of $1,6 million, which was an improvement from an attributable loss of $3,3 million recorded in 2013.

He said interest income declined to $31 million from $33 million while interest expenses also dropped to $12,6 million from $13 million. “Profit before tax was $2,4 million and this gave rise to an attributable profit of $1,6 million,” he said.

Income for the period decreased by four percent from prior year of $50,1 million to $48 million, which is comprised of interest income of $15,1 million, net foreign exchange gains of 41,8 million and non income interest of $62,025.

Operating expenses were $27,984 and these were 11 percent up from prior year mainly driven by administration expenses, depreciation and staff- related expenses.

The group’s total deposits also surged to $235 million from $211 million with shareholders funds increasing by four percent to $45 million.

Turning to economic environment, Mundawarara said:

“The economic slowdown, which started in the last two quarters of 2013 persisted into 2014 and the economy has continued to be characterised by company closures, deflation, lack of liquidity and increasing default risk”.