NMBZ to mobilise credit lines
THE Zimbabwe Stock Exchange-listed financial services group, NMBZ Holdings Limited, is targeting to secure US$100 million dollars in external lines of credit before the end of the first quarter of next year to expand its credit portfolio in the market.
Group chief executive officer, Benefit Washaya, told the Financial Gazette’s last week that of this amount, about US$60 million had already been approved while negotiations with other foreign investors are at an advanced stage.
This will come from six funders who include the Norwegian State-owned investment vehicle, Norwegian Fund (Norfund), Dutch Development Bank (FMO) and African Export-Import Bank (Afreximbank),
The bank will channel the funds to various sectors of the economy.
“In spite of the economic challenges, as a bank, we continue to play our part in the country’s economic recovery efforts,” said Washaya.
“One of the ways we do this is by sourcing for lines of credit and this enables us to offer fairly priced facilities to our customers.
“Leveraging on our strong shareholding which include among others African Century LLP, Old Mutual, FMO, Norfund, and AfricInvest, we have been able to score considerable success in raising external lines of credit. Our approved lines (of credit) stand at US$60 million from six different funders and we are negotiating for additional lines in the region of US$40 million. We hope to conclude the negotiations before the end of the first quarter of 2016,” said Washaya.
The group has adjusted its business model and broadened its market segments.
NMBZ will open several so-called Excellence Centres around the country to continue providing excellent service to high net worth clients.
The first one was opened last week at Sam Levy’s Village in Borrowdale, Harare.
The group has also opened excellence desks in branches such as Avondale, Msasa, Southerton, Bulawayo, Mutare and Borrowdale.
It recently opened branches in Kwekwe and Masvingo and is expected to open another branch in Chinhoyi within the next three months.
In its financial results for the six months to June 30, 2015, the group recorded a profit of US$3,2 million from US$1,4 million reported in prior comparable period.
NMBZ’s total income for the period under review increased by 24 percentage points from US$23,3 million to US$28,8 million, while operating expenses increased by five percentage points to US$14,1 million.
These were driven largely by administration costs and amortisation of intangible assets.
Impairment losses on loans and advances amounted to US$2,6 million for the reporting period, from US$1,6 million. The increase was mainly due to the deteriorating economic environment.
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