RNS Number:1821S
NMBZ Holdings Ld
28 February 2002
NMBZ HOLDINGS LIMITED
Holding company of
NMB Bank Limited (Registered Commercial Bank)
and
Continental Securities Trading (Private) Limited
AUDITED INFLATION ADJUSTED AND HISTORICAL RESULTS FOR THE YEAR ENDED 31 DECEMBER
2001
HIGHLIGHTS
2001 Z$ millions 2000 Z$ millions Change %
Inflation adjusted attributable profit 907.1 747.4 +21
Historical attributable profit 1 841.6 626.8 +193
Inflation adjusted non-interest income 2 666.8 1 848.0 +44
Inflation adjusted total asset base 31 391.8 15 757.6 +99
Inflation adjusted basic earnings per share (cents) 221.5 187.5 +18
Historical dividend per share (cents) 109.0 43.4 +151
Inflation adjusted cost to income ratio (%) 28 33 -15
Mr Paddy Zhanda, Chairman of NMBZ Holdings, said:
"It gives me great pleasure in this, the fifth year since NMBZ Holdings'
listing, to report that the Group overcame tough trading conditions in the year
under review to achieve strong real growth and significant value creation for
shareholders."
28 February 2002
Enquiries:
NMBZ HOLDINGS LIMITED Tel: +263-4-759 651/9
Dr Julius Makoni, Managing Director juliusm@nmbz.co.zw
James Mushore, Deputy Managing Director jamesm@nmbz.co.zw
Otto Chekeche, Finance Director ottoc@nmbz.co.zw
Website: http://www.nmbz.co.zw
Email: enquiries@nmbz.co.zw
COLLEGE HILL - LONDON
Corinna Dorward/Matthew Gregorowski Tel: +44-207-457-2020
CHAIRMAN'S STATEMENT
OVERVIEW
The year 2001 was a difficult one for business and the general public and was
characterised by:-
* Declining Gross Domestic Product (GDP)
* Hyperinflation and high money supply growth
* Weak Balance of Payments (BOP) position
* Foreign currency shortages
Positive factors during the year were:-
* Concessionary financing schemes for exporters and producers
* Savings on domestic debt service
ECONOMIC REVIEW
Declining GDP
Economic performance during 2001 was well below the levels achieved in 2000. The
country's real GDP is expected to decrease by 8% in 2001 compared to an
estimated decline of 4.2% in 2000. Major reductions in GDP are expected in
agriculture (2%), mining (1%), manufacturing (2%) and distribution, hotels and
restaurants (3%).
Hyperinflation and high money supply growth
The country recorded runaway levels of inflation during 2001. Inflation, which
stood at 57% in January 2001, rose to 112.1% by December 2001. This trend, which
was mainly driven by excessive growth in money supply and the cost-push effect
of high parallel market foreign exchange rates, is expected to continue into
2002. The hyperinflationary conditions have seriously eroded the purchasing
power of incomes with a 1990 dollar now worth less than 5 cents. A major
challenge remains the high recourse to bank finance by the government. Without
fiscal discipline, any efforts to control the excessive money supply growth and
hence the runaway inflation will remain a pipe dream. Broad money supply growth,
M3, which closed the year 2000 at 59.9%, increased by approximately 100% in
2001.
Weak Balance of Payments (BOP) position
The country's BOP position remains poor in the face of declining export
performance, a drastic reduction in foreign capital inflows and cessation of
offshore lines of credit.
Merchandise exports are expected to decline by 4% in 2001 compared to a decline
of 5.5% in 2000.
A current account deficit of US$300 million is forecast for 2001, compared to an
estimated deficit of US$159 million in 2000.
On the capital account, a deficit of US$ 200 million is forecast for 2001,
compared to an estimated deficit of US$336 million in 2000. This was driven
mainly by the suspension of disbursements by the International Monetary Fund
(IMF), the World Bank and other global finance houses. In addition, the sharp
decline in foreign direct and portfolio investment inflows, from a pre-1997
level of around US$120 million to under US$25 million in 2001 contributed to the
deficit.
The overall balance of payments deficit is estimated at US$500 million for 2001
compared to an estimated deficit of US$495 million in 2000.
The country's foreign payment arrears continued to build up during 2001 and
ended the year at just over US$700 million.
Foreign exchange market and exchange rate policy
Despite the runaway inflation in the year, the official exchange rate remained
static at Z$55 to the US$. This standstill position has continued to erode the
viability of most exporting businesses, particularly those in agriculture and
manufacturing. Excessive rains towards the end of the 2000/2001 agricultural
season resulted in a 14.6% decline in flue-cured tobacco sales on the auction
floors from 236.9 million kgs recorded in 2000 to 202.4 million kgs registered
in 2001. Given that tobacco is the country's main foreign exchange earner, an
aggressive export strategy aimed at diversifying the export basket is required
if the economy is to generate sufficient foreign currency to sustain the
country's needs.
The continued existence of an active parallel market gives an urgent impetus to
the need for a clear exchange rate management policy in order to restore order
in the foreign exchange market.
Gold producers were given a lifeline by the Government in April 2001 when they
were granted an US$343 per oz floor price at the official exchange rate. To show
Government's commitment to the revival of the gold mining industry, the floor
price was revised to US$430 per oz in August 2001 with a further increase of an
additional US$4 per oz with effect from 1 December 2001. Despite these
concessions, gold production during the year declined to 18 tonnes compared to
22 tonnes produced in 2000.
Concessionary financing schemes for exporters and producers
At the beginning of 2001, the Reserve Bank of Zimbabwe (RBZ) introduced an
accommodative monetary policy characterised by low interest rates. In January
2001, the Reserve Bank of Zimbabwe introduced the Export and Productive Sector
Financing facilities, which saw the release of banks' statutory reserves for on-
lending to exporters and other producers at rates of 15% and 30% per annum
respectively. This policy thrust resulted in an estimated Z$30 billion being
extended to exporters and other producers over the 11 months to December 2001
and this provided significant relief to the beneficiaries.
Positive fiscal result
The Government made substantial savings amounting to over Z$30 billion on
domestic debt service largely as a result of the low interest regime. Government
domestic debt rose from Z$163 billion in 2000 to Z$194 billion in 2001. Treasury
bills continue to dominate the debt accounting for 84% in 2001 compared to 94%
in 2000.
THE ZIMBABWE STOCK EXCHANGE
The stock market performed strongly during the year. The industrial index
increased by 157% as investors responded to the fall in interest rates by
redirecting their funds to the stock market. A number of initial public
offerings brought increased activity to the bourse. The continuing negative
returns on the money market will continue to spur activity on the stock market.
This will benefit the operations of the stock broking subsidiary.
ECONOMIC OUTLOOK
In order to steer the economy back onto the recovery and growth path, the
following key factors are pertinent:-
* Formulation and implementation of exchange rate and interest rate policies
* Containment of money supply growth rate and runaway inflation
* Resolution of the land distribution exercise
* Re-establishment of links with the IMF, World Bank and other multilateral
lending institutions.
We are optimistic that given the right economic policies and the political will,
our economy will return to a growth and recovery path.
GROUP RESULTS
Introduction
The difficult and trying macro-economic environment that was characterised by
managed interest rates, hyperinflation, shortages of foreign currency and the
absence of offshore lines of credit greatly hampered the scope for growth,
especially with regards to the offshore portfolio in the banking subsidiary. The
banking subsidiary sought to offset the effects of the above negative factors on
earnings and growth by continuing to place emphasis on tight risk management
processes and simultaneously growing the lending book in the commercial bank and
non-interest income.
Commercial Banking
Following the acquisition of the commercial banking licence in December 1999,
the Bank went on to launch its commercial banking division in August 2000.
During the year under review, the Bank continued to make significant investments
in cutting edge technology laying a solid platform from which to launch a wide
variety of innovative products and services as well as improve operational
efficiency. A new branch at the up-market Eastgate complex was opened in
November 2001 and in less than two months, the level of clientele is
encouraging. Four new ATM sites were launched in the year, namely Card Centre,
Eastgate, Marimba Shopping Centre and Bradfield in Bulawayo. Plans are at an
advanced stage to open more branches and other delivery channels. The increased
product and service range, is expected to assist the Bank to lower its cost of
funds as well as increase utilisation of the Bank's offerings and broaden the
revenue base.
The commercial banking division continues to target medium and large corporate
business clients and selected individuals, a policy adopted from its inception.
The year 2001 represents a full year of operation of the commercial banking
division and the board is confident that proven returns will continue to justify
the investment.
Compliance with International Accounting Standards
The existence of hyperinflation as defined by International Accounting Standard
29 (IAS 29) was formally identified in Zimbabwe by the Zimbabwe Accounting
Practices Board, which decided that IAS 29 would be applied for financial
periods beginning on or after 1 January 2000. Consequently, these results have
been prepared in compliance with IAS 29, which requires the adjustment of the
financial statements on the basis of the inflation indices over the reporting
period, and a restatement of prior year comparative figures.
Profit before taxation
Restated profit before taxation increased by 46% during the period under review.
Significant gains from the successful investment strategy were party offset by
the increased monetary loss.
Effective tax rate
The effective tax rate increased to 53% (2000 - 45%). The increase highlights
the impact of, inter alia, the financial institutions levy of 5% of bank's
profits before tax introduced with effect from 1 January 2001.
Attributable profits
The Group achieved inflation adjusted attributable profits of Z$907.1 million,
an increase of 21% over the adjusted result for the same period last year as the
Group begins to realise the benefits of the investment in the retail banking
sector. The return on shareholders' funds at 32% for the year from 28% last
year, reflects continued value creation for the shareholders.
Net interest income
Net interest income increased by 112% to Z$2 994.4 million from Z$1 410.3
million as the bank was able to attract deposits through the retail bank for on
lending at competitive rates. In addition, lendings grew as clients accessed the
cheaper statutory reserve funds offered by the RBZ for the Export and Productive
Sectors. Lending to the agricultural sector continued to be low due to the
disruptions associated with the land redistribution programme. Income earned on
the money market increased significantly due to attractive margins earned on
treasury bills purchased before the fall in interest rates at the beginning of
the year. The expanding lending book should assure continued growth in this
income stream.
Non-interest income
Non-interest income increased by 44% and contributed 47% of Group net operating
income. The increase was in line with the Group's strategy of focussing on fees
and other non-lending income. The Zimbabwe Stock Exchange (ZSE) experienced a
bull run for the greater part of the year, resulting in substantial profits on
the group's portfolio.
Foreign exchange gains were sluggish over the period with a 26% growth recorded
from this revenue base. The slowdown is consistent with the prevailing low
foreign currency volumes.
Continental Securities Trading (Private) Limited (CST) continues to contribute
positively to the Group results, with an increase of 411% being realised from
the subsidiary whose success in the reporting period was aided by a boom in the
stock market.
Operating expenses
Operating expenses increased by 43% over the same period last year. The bulk of
the increases were incurred in administration, payroll costs and the increased
depreciation charge resulting from commissioning of the commercial bank
branches. The cost/income ratio at 28% shows an improvement of 5 percentage
points compared with the same period last year. This reflects improved
efficiencies and cost control initiatives undertaken in the year under review.
Loss on net monetary position
The loss on net monetary position occurs as a result of the restatement of
amounts to current value. The adjustment is based on the inflation index as
provided by the Central Statistical Office of Zimbabwe. The loss has been
charged to income in accordance with the International Accounting Standard 29
"Reporting in Hyperinflationary Economies" The relative increase in monetary
assets has contributed to the significant loss on net monetary position incurred
in the reporting period in the face of runaway inflation, particularly in the
second half of the year.
Bad and doubtful debts
The charge for bad and doubtful debts increased to Z$290.7 million from Z$165.2
million the previous year. The directors continue to take a conservative
approach to provisions due to the industry risks associated with the difficult
operating environment resulting in an increase in provisions made. The exposure
to the agricultural sector at 9% is not material, however, management has been
cautious and adequate provisions have been made where appropriate.
Dividend
A final dividend of 75.8 cents per share has been declared, bringing the total
dividend for the year to 109.0 cents per share an increase of 17% from the
position at 31 December 2000. This is in line with the Group's twice covered
dividend policy.
Balance Sheet
Growth in Asset Base
Group total asset base increased by 99% to Z$31 391.8 million from Z$15 757.6
million at 31 December 2000. The major influences on this movement were
increases in:-
- Quoted and other investments (988%)
- Advances and other accounts (174%)
- Financial assets held for trade (101%)
- Customers' indebtedness for acceptances (28%)
Capital Adequacy
The banking subsidiary's capital adequacy ratio at 31 December 2001 calculated
on the historic cost basis in accordance with the guidelines of the Reserve Bank
was 13.44% (31 December 2000 - 21.09%). This compares favourably with the
Reserve Bank's minimum ratio of 10%. The decrease is a result of the expansion
of the bank's lending book.
Share split
At an Extraordinary General Meeting held on 19 October 2001, the shareholders
authorised the directors that each of the 40 000 000 ordinary shares of Z$3.50
each in the authorised share capital of the company be split into 560 million
shares of Z$0.25 each. Comparatives for the number of shares in prior year have
been restated accordingly.
Share buy back
The directors were authorised at an Extraordinary General Meeting held on 19
October 2001 to repurchase up to 560 million shares for cancellation. No shares
were repurchased for the period to 31 December 2001.
THE STOCK MARKET
The number of listed companies grew from 73 in 2000 to 77 by the end of 2001.
The total market capitalisation during the period grew by 201% in Zimbabwe
dollar terms to close the year at Z$362 billion.
The unfavourable macro economic conditions and price controls introduced during
the year saw the market closing the year on a low note. Trading in 2002 has
started on a subdued note with a further decline in the market index as the
market awaits direction from the outcome of the Presidential election to be held
on 9 and 10 March 2002. With interest rates expected to rise after the
Presidential election, the stock market will have to compete strongly for funds
with the money market.
DIRECTOR APPOINTMENT
Mr Peter Madubeko Bhebhe (53) - BCOM (SA), IMM (SA), EMBA, NUST, was appointed
to the board in the third quarter of 2001.
He has extensive experience in commerce and industry and is a director of
several companies and institutions including Zimtrade, which he chairs, and the
Zimbabwe Revenue Authority. He resides in Bulawayo.
I would like to welcome him to the Board and look forward to his valuable and
positive contribution to the company.
OUTLOOK AND STRATEGY
The continued isolation of the country from the international community is a
cause for concern. The outcome of the Presidential election and the acceptance
of the election results as free and fair will shape the destiny of our operating
environment. Measures to be taken by the authorities to rein in the galloping
inflation will have a significant impact on boosting business confidence and
activity in the country. The inclusion of more products on the controlled price
list will, if it goes unchecked, have an adverse impact on both local and
foreign investment.
We will continue to pursue growing non-interest income in the year ahead.
DIRECTORS, MANAGEMENT AND STAFF
I would like to extend my gratitude to the non-executive directors, the Managing
Director, executive directors, management and staff for their consistent hard
work and dedication in achieving these results. We look forward to a year of
consolidating our expansion.
PADDY TENDAYI ZHANDA CHAIRMAN
26 February 2002
DIVIDEND ANNOUNCEMENT year ended 31 December 2001
The Board has proposed a final dividend of 75.8 cents per share on 415 991 100
shares payable to members registered in the books of the company on 15 March
2002. The transfer books and register of members will be closed from 16 March to
22 March 2002. Dividend cheques will be mailed to shareholders on or about 29
March 2002. The dividends payable to non-resident shareholders will be paid in
accordance with Exchange Control Regulations. With effect from 1 February 2000
exchange control approval is required for payment of dividends declared by
banks. Resident and non-resident shareholders' tax of 15% will be deducted where
applicable.
By order of the Board
M B Narotam Secretary
26 February 2002
DIRECTORS:
P T Zhanda (Chairman), Dr J T Makoni (Managing Director)*, P M Bhebhe,
O O Chekeche*, Dr C J Constable, M L dos Remedios,J S Friedlander, J A
Mushore*, A M T Mutsonziwa, F Zimuto*
* Executive
INFLATION ADJUSTED GROUP INCOME STATEMENT
year ended 31 December 2001
Restated
Note 2001 2000
Z$'000 Z$'000
Interest from lending activities 1 157 882 794 696
Charge for bad and doubtful debts (290 681) (165 215)
867 201 629 481
Interest from investing activities 3 462 853 1 213 396
4 330 054 1 842 877
Interest expense (1 335 699) (432 618)
Net interest income 2 994 355 1 410 259
Foreign exchange gains 838 072 663 248
Net dealing income from securities 660 820 430 431
Other income 5 1 167 934 754 300
Net operating income 5 661 181 3 258 238
Operating expenditure 6 (1 559 716) (1 091 065)
Loss on net monetary position (2 096 781) (796 987)
Profit before taxation 2 004 684 1 370 186
Taxation 7 (913 878) (614 409)
Financial institutions levy 7 (140 013) -
Profit after taxation 950 793 755 777
Minority interest (43 699) (8 422)
Profit attributable to ordinary shareholders 907 094 747 355
Dividends per share (cents) 8 109.0 93.5
Earnings per share (cents)
- Basic 9 221.5 187.5
- Headline 9 216.8 187.4
- Diluted basic 9 221.3 183.1
- Diluted headline 9 216.7 183.0
INFLATION ADJUSTED GROUP BALANCE SHEET
31 December 2001
Restated
Note 2001 2000
SHAREHOLDERS' FUNDS Z$'000 Z$'000
Share capital 10 893 821 887 473
Capital reserves 1 944 132 1 821 834
Revenue reserves 656 953 51 803
Total shareholders' funds 3 494 906 2 761 110
MINORITY INTEREST 90 479 48 980
3 585 385 2 810 090
LIABILITIES
Deferred tax liability - 427 818
Provision for current taxation 1 594 447 245 491
Current and deposits accounts 13 413 665 4 993 292
Financial liabilities held for trading 4 719 388 956 219
Acceptances 8 078 919 6 324 684
31 391 804 15 757 594
ASSETS
Balances with banks and cash 978 414 948 833
Financial assets held for trading 5 728 429 2 855 357
Advances and other accounts 10 812 158 3 950 415
Investments:-
Trade investment 59 114 26 116
Quoted and other investments 3 696 228 339 672
Property, plant & equipment 1 660 024 1 312 517
Deferred tax asset 378 518 378 518
Customers' indebtedness
for acceptances 8 078 919 6 324 684
31 391 804 15 757 594
P T ZHANDA
O O CHEKECHE
Directors
M B NAROTAM
Secretary
26 February 2002
INFLATION ADJUSTED STATEMENT OF CHANGES IN EQUITY
As at 31 December 2001
Revenue
Capital Reserves
Share Share Statutory Redemption Accumulated
Capital Premium Reserve Reserve Other Profit Total
Z$'000 Z$'000 Z$'000 Z$'000 Z$'000 Z$'000 Z$'000
1 January 2001
As previously reported 887 473 1 396 362 251 203 171 650 2 619 51 803 2 761 110
Effect of adopting IAS 39 - - - - - (14 742) (14 742)
As restated at 1 January 2001 887 473 1 396 362 251 203 171 650 2 619 37 061 2 746 368
Shares issued 6 348 122 298 - - - - 128 646
Net profit for the year - - - - - 907 094 907 094
Dividends paid - - - - - (287 202) (287 202)
Balances at 31 December 2001 893 821 1 518 660 251 203 171 650 2 619 656 953 3 494 906
At 31 December 2000 - (Restated)
Revenue
Capital Reserve
Share Share Statutory Redemption Accumulated
Capital Premium Reserve Reserve Other Profit Total
Z$'000 Z$'000 Z$'000 Z$'000 Z$'000 Z$'000 Z$'000
I January 2001
As previously reported 99 630 172 149 22 500 27 921 675 288 880 611 755
Restatement for IAS 29 786 740 1 218 041 228 703 143 729 1 944 (827 016) 1 552 141
Effect of adopting IAS 10 - - - - - 530 651 530 651
As restated at 1 January 2000 886 370 1 390 190 251 203 171 650 2 619 (7 485) 2 694 547
Shares issued 1 103 6 172 - - - - 7 275
Net profit for the year - - - - - 747 355 747 355
Dividends paid - - - - - (688 067) (688 067)
Balances at 31 December 2000 887 473 1 396 362 251 203 171 650 2 619 51 803 2 761 110
IAS 10 (Revised) requires the inclusion of dividends in reserves and not in the
income statement.
INFLATION ADJUSTED GROUP CONSOLIDATED CASH FLOW STATEMENT
year ended 31 December 2001
Restated
CASH FLOWS FROM OPERATING ACTIVITIES 2001 2000
Z$'000 Z$'000
Profit before taxation and interest on government
and public sector securities and monetary loss 3 767 341 2 084 672
Non-cash items
Profit on disposal of property, plant & equipment (27 400) (834)
Depreciation 188 544 185 940
Charge for bad and doubtful debts 290 681 165 215
Monetary loss (2 096 781) (796 987)
IAS 39 fair value adjustment (36 891) -
Operating cash flow before changes in operating
assets and liabilities 2 085 490 1 638 006
Changes in operating assets and liabilities
Financial liabilities held for trading 3 764 873 -
Deposits and other accounts 8 420 373 (889 560)
Advances and other accounts (7 152 424) (102 476)
Financial assets held for trading (1 047 259) -
6 071 057 645 970
Taxation
Corporate tax paid (511 271) (222 962)
Net cash inflow from operating activities 5 559 786 423 008
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of government and public sector securities - (51 256)
Proceeds on disposal of property, plant & equipment 192 870 14 073
Purchase of property, plant & equipment (701 522) (981 331)
Proceeds on disposal of investments - 266 817
Purchase of quoted and other investments (3 389 554) (89 729)
Net interest received on government and public sector securities 334 124 82 501
Net cash outflow from investing activities (3 564 078) (758 925)
Net cash inflow/(outflow) before financing activities 1 995 704 (335 917)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares 128 646 5 233
Dividends paid (289 402) (692 101)
Net cash outflow from financing activities (160 756) (686 868)
Net increase/(decrease) in cash and cash equivalents 1 834 948 (1 022 785)
Cash and cash equivalents at the beginning of year 3 765 410 4 788 195
CASH AND CASH EQUIVALENTS AT THE END OF YEAR 5 600 358 3 765 410
Cash and cash equivalents comprise cash and bank balances, treasury bills, fuel
bonds and bills receivable.
NOTES TO THE INFLATION ADJUSTED GROUP FINANCIAL STATEMENTS
31 December 2001
1. INCORPORATION AND ACTIVITIES
The company is incorporated in Zimbabwe and is an investment holding company.
Its subsidiaries are engaged in banking, stockbroking services and fund management.
2. CURRENCY
These financial statements are expressed in Zimbabwe dollars.
3. BASIS OF PREPARATION
The financial statements are prepared under the historical cost convention. The
historical results presented as a supplement on pages 21 - 31 have been audited
and adjusted to reflect the changes in general price levels in accordance with
IAS 29, Financial Reporting in Hyperinflationary Economies and IAS 39, Financial
Instruments: Recognition and Measurement.
4. INFLATION ACCOUNTING
The economy of Zimbabwe is considered to be a hyperinflationary economy. In
order to comply with IAS 29 Financial Reporting in Hyperinflationary Economies,
financial statements need to be expressed in terms of the measuring unit current
at the balance sheet date. Accordingly, the accompanying financial statements,
including comparatives, have been restated to account for changes in the general
purchasing power of the Z$. The restatement is based on the consumer price index
at the balance sheet date. The indices are derived from the inflation rates
which are issued by the Central Statistical Office of Zimbabwe. The indices used
were as follows:-
Dates Indices Conversion Factors
31-Dec-95 100.00 11.6740
31-Dec-96 121.40 9.6161
31-Dec-97 144.30 8.0901
31-Dec-98 190.10 6.1410
31-Dec-99 354.60 3.2922
31-Dec-00 550.40 2.1210
31-Dec-01 11 167.40 1.0000
The indices have been applied to the historical costs of transactions and
balances as follows:
* All comparative figures as of and for the year ended 31 December 2000 have
been restated by applying the change in the index to 31 December 2001;
* Income statement transactions have been restated by applying the change in the
index from the approximate date of the transactions to 31 December 2001;
* Gains and losses arising from the monetary asset or liability positions have
been included in the income statement;
* Non-monetary assets and liabilities have been restated by applying the change
in the index from the date of the transaction, to 31 December 2001, and;
* Fixed assets and accumulated depreciation have been restated by applying the
change in the index from the date of their purchase to 31 December 2001. *
Equity has been restated by applying the change in index from the date of issue.
* All items in the cash flow statement are expressed in terms of measuring unit
current at the balance sheet date.
IAS 29 discourages publication of historical results as a supplement to
inflation adjusted accounts. However, historical results appearing on pages 21 -
31 have been published to allow comparability of results during the transitional
phase in applying the standard in Zimbabwe. The Zimbabwe Accounting Practices
Board and the Zimbabwe Stock Exchange have permitted companies in Zimbabwe to
publish historical results in conjunction with inflation adjusted accounts for
the first three years ending 31 December 2002.
5. OTHER INCOME
Restated
2001 2000
Z$'000 Z$'000
Gains less losses from quoted and other
investments 400 455 436 234
Commission and fee income 352 218 227 265
Broking income 342 340 52 794
Profit on disposal of assets 27 400 834
Other operating income 45 521 37 173
1 167 934 754 300
6. OPERATING EXPENDITURE
The operating profit is after
charging the following:
Administration costs 434 974 301 588
Audit fees 8 762 7 392
Depreciation
- Fixed assets leased to
customers 2 141 24 586
- Own assets 186 403 161 354
Directors' remuneration
Paid by subsidiary companies
Fees for services as directors 1 840 2 337
Other emoluments 100 544 71 081
Staff costs 825 052 522 727
1 559 716 1 091 065
7. TAXATION
Restated
2001 2000
Z$'000 Z$'000
Current tax 1 494 102 205 069
Deferred tax (credit)/ charge (580 224) 409 340
913 878 614 409
Financial institutions levy 140 013 -
1 053 891 614 409
The effective tax rate has increased from 44.8% to 52.6% as a result of the 5%
financial institutions levy introduced with effect from 1 January 2001.
8. Dividends Restated
2001 2000
Z$'000 Z$'000
Interim dividend
33.25 cents per share on 415 991 100 shares
(2000 -39.50 cents per share on 398 518 246 shares) 138 322 157 417
Final proposed dividend
75. 8 cents per share on 415 991 100 shares
(2000 - 53.98 cents per share on 400 600 410 shares) 315 225 216 260
453 547 373 677
9. EARNINGS PER SHARE
9.1 Basic earnings per share
The calculation of basic earnings per share for the year ended 31 December 2001
of 221.5 cents (2000 - 187.5 cents) is based on profit after taxation
attributable to ordinary shareholders of Z$907 094 000 (2000 - Z$747 355 000)
and the weighted average shares in issue after share split of 409 578 313 (2000
- 398 603 814).
9.2 Headline earnings per share
The calculation of headline earnings per share for the year ended 31 December
2001 of 216.8 cents (2000 - 187.4 cents) is based on adjusted profit after
taxation attributable to ordinary shareholders of Z$888 161 000 (2000 - Z$746
822 000) and on the weighted average shares in issue after share split of 409
578 313 (2000 - weighted average of 398 603 814).
The adjustments were as follows:-
Restated
2001 2000
Z$'000 Z$'000
Profit attributable to shareholders 907 094 747 355
Deduct non-recurring items:
Profit on disposal of property, plant & equipment (27 400) (834)
Tax effect 8 467 301
888 161 746 822
Number of shares (000's) 409 578 398 604
This is calculated in accordance with Statement of Investment Practice No.1
issued by the Institute of Investment Management and Research to assist users of
accounts to identify earnings derived from trading activities.
9.3 Diluted earnings per share
The diluted earnings per share for the year ended 31 December 2001 is 221.3
cents (2000 - 183.1 cents). The calculation is based on profit after taxation
attributable to ordinary shareholders of Z$907 094 000 (2000 - Z$747 355 000)
and on the diluted shares after share split of 409 851 113 (2000 - 408 142 714).
The dilution in earnings per share arises from 660 000 share options granted
to senior employees, in terms of the employee share option scheme outstanding at
31 December 2001.
9.4 Diluted headline earnings per share
The diluted headline earnings per share for the year ended 31 December 2001 is
216.7 cents (2000 - 183.0 cents). The calculation is based on adjusted profit
after taxation of Z$888 161 000 (2000 - Z$746 822 000) and on diluted shares of
409 851 113 (2000 - 408 142 714).
10. SHARE CAPITAL
10.1 Share Split
At an Extraordinary General Meeting held on 19 October 2001, the shareholders
authorised the directors to split 40 000 000 ordinary shares of Z$3.50 each in
the authorised share capital of the company into 560 000 000 shares of Z$0.25
each. Comparatives for the number of shares in prior years have been restated
accordingly.
Restated
2001 2000 2001 2000
10.2 Authorised Shares Shares $'000 $'000
Ordinary shares of Z$0.25 each 560 000 000 560 000 000 140 000 140 000
10.3 Issued and fully paid
At 1 January 400 600 410 398 518 246 100 150 99 630
Shares issued during the year 15 390 690 2 082 164 3 848 520
At 31 December 415 991 100 400 600 410 103 998 100 150
Effect of adopting IAS 29 - - 789 823 787 323
415 991 100 400 600 410 893 821 887 473
The issued share capital increased during the year as a result of the exercise
of 15 390 690 share options by managerial staff. Of the unissued ordinary
shares, 24 126 256 are reserved for options which may be granted in terms of a
share option scheme. As at 31 December 2001, 660 000 share options were
outstanding (2000 - 16 366 000).
10.4 Share Buy Back
At an Extraordinary General Meeting held on 19 October 2001, shareholders
authorised the directors to purchase up to 56 000 000 (fifty six million) of the
company's own shares. No shares were repurchased for the period to 31 December
2001.
11. SEGMENT REPORT
Segment information is presented in respect of the Group's business segments.
The business segments, retail and merchant banking, are based on the Group'
management and internal reporting structure.
11. SEGMENT REPORT (Cont'd)
Retail banking Merchant banking Consolidated
Restated Restated Restated
31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec
2001 2000 2001 2000 2001 2000
Z$'000 Z$'000 Z$'000 Z$'000 Z$'000 Z$'000
REVENUE
External interest and other 1 220 722 137 411 6 066 839 3 718 660 7 287 561 3 856 071
revenue
Total revenue 1 220 722 137 411 6 066 839 3 718 660 7 287 561 3 856 071
RESULT
Operating profit before
unallocated expenses 470 925 (5 483) 3 630 540 2 172 656 4 101 465 2 167 173
Unallocated corporate
expenses:
Income taxes (1 053 891) (614 409)
Loss on net monetary position (2 096 781) (796 987)
Minority interest (43 699) (8 422)
Profitable attributable 907 094 747 355
ordinary shareholders
11. SEGMENT REPORT (Cont'd)
Retail banking Merchant banking Consolidated
Restated Restated Restated
31 December 31 December 31 December 31 December 31 December 31 December
2001 2000 2001 2000 2001 2000
Z$'000 Z$'000 Z$'000 Z$'000 Z$'000 Z$'000
OTHER INFORMATION
Segment assets 7 301 263 946 042 23 712 023 14 811 552 31 013 286 15 757 594
Total assets 7 301 263 946 042 23 712 023 14 811 552 31 013 286 15 757 594
Segment liabilities 5 983 979 370 448 20 227 993 11 903 747 26 211 972 12 274 195
Unallocated corporate
liabilities/(assets)
Provision for current tax 1 594 447 245 491
Deferred taxation (378 518) 427 818
Minority interest 90 479 48 980
Total liabilities 5 983 979 370 448 20 227 993 11 903 747 27 518 380 12 996 484
Capital expenditure 435 038 600 835 266 483 380 496 701 521 981 331
Depreciation 144 497 53 084 44 047 132 856 188 544 185 940
12. EXCHANGE RATES
The official exchange rates were as follows:
ZIMBABWE DOLLAR EQUIVALENT
At 31 December At 31 December
2001 2000
United States Dollar USD1.00 Z$55.00 Z$55.00
British Sterling GBP1.00 Z$79.74 Z$82.07
NMBZ HOLDINGS LIMITED
and subsidiaries
HISTORICAL
FINANCIAL STATEMENTS
31 DECEMBER 2001
GROUP HISTORICAL INCOME STATEMENT
year ended 31 December 2001
Note 2001 2000
Z$'000 Z$'000
Interest from lending activities 831 980 320 410
Charge for bad and doubtful debts (290 681) (77 895)
541 299 242 515
Interest from investing activities 2 652 926 461 604
3 194 225 704 119
Interest expense (999 489) (173 949)
Net interest income 2 194 736 530 170
Foreign exchange gains 590 179 217 578
Net dealing income from securities 573 893 251 276
Other income b 735 201 329 559
Net operating income 4 094 009 1 328 583
Operating expenditure c (1 140 301) (408 790)
Profit before taxation 2 953 708 919 793
Taxation d (913 878) (289 679)
Financial institutions levy d ( 140 013) -
Profit after taxation 1 899 817 630 114
Minority interest (58 244) (3 352)
Profit attributable to ordinary shareholders 1 841 573 626 762
Dividends per share (cents) e 109.0 43.4
Earnings per share (cents)
- Basic f 449.6 157.2
- Headline f 445.5 157.1
- Diluted basic f 443.0 153.6
- Diluted headline f 438.9 153.4
GROUP HISTORICAL BALANCE SHEET
31 December 2001
Note 2001 2000
SHAREHOLDERS' FUNDS Z$'000 Z$'000
Share capital g 103 998 100 150
Capital reserves 299 320 225 192
Revenue reserve 2 467 231 844 279
Total shareholders' funds 2 870 549 1 169 621
MINORITY INTEREST 65 825 9 781
2 936 374 1 179 402
LIABILITIES
Deferred taxation - 201 706
Provision for current taxation 1 594 447 115 743
Deposits and other accounts 13 413 665 2 354 217
Financial liabilities held for trading 4 719 388 450 834
Acceptances 8 078 919 2 981 936
30 742 793 7 283 838
ASSETS
Balances with banks and cash 978 414 447 352
Financial assets held for trading 5 728 429 1 346 232
Advances and other accounts 10 812 158 1 862 526
Investments:
Trade investment 2 718 2 718
Quoted and other investments 3 696 228 160 147
Property, plant & equipment 1 067 409 482 927
Deferred tax asset 378 518 -
Customers' indebtedness
for acceptances 8 078 919 2 981 936
30 742 793 7 283 838
P T ZHANDA
O O CHEKECHE
Directors
M B NAROTAM
Secretary
26 February 2002
GROUP HISTORICAL STATEMENT OF CHANGES IN EQUITY
As at 31 December 2001
At 31 December 2001
Revenue
Capital Reserves
Share Share Statutory Redemption Accumulated
Capital Premium Reserve Reserve Other Profit Total
Z$'000 Z$'000 Z$'000 Z$'000 Z$'000 Z$'000 Z$'000
As previously reported
1 January 2001 100 150 174 096 22 500 27 921 675 844 279 1 169 621
Effect of adopting IAS 39 - - - - - (14 742) (14 742)
Restated at 1 January 2001 100 150 174 096 22 500 27 921 675 829 537 1 154 879
Shares issued 3 848 74 128 - - - - 77 976
Net profit for the year - - - - - 1 841 573 1 841 573
Dividends paid - - - - - (203 879) (203 879)
Balances at 31 December 2001 103 998 248 224 22 500 27 921 675 2 467 231 2 870 549
At 31 December 2000
Revenue
Capital Reserves
Share Share Statutory Redemption Accumulated
Capital Premium Reserve Reserve Other Profit Total
Z$'000 Z$'000 Z$'000 Z$'000 Z$'000 Z$'000 Z$'000
As previously reported
1 January 2000 99 630 172 149 22 500 27 921 675 288 880 611 755
Effect of adopting IAS 10 - - - - - 161 413 161 413
Restated at 1 January 2000 99 630 172 149 22 500 27 921 675 450 293 773 168
Shares issued 520 1 947 - - - - 2 467
Net profit for the year - - - - - 626 762 626 762
Dividends paid - - - - - (232 776) (232 776)
Balances at 31 December 2000 100 150 174 096 22 500 27 921 675 844 279 1 169 621
IAS 10 (Revised) requires the inclusion of dividends in reserves and not in the
income statement.
GROUP HISTORICAL CONSOLIDATED CASH FLOW STATEMENT
year ended 31 December 2001
CASH FLOWS FROM OPERATING ACTIVITIES 2001 2000
Z$'000 Z$'000
Profit before taxation and interest on government
and public sector securities 2 710 358 886 548
Non-cash items
Profit on disposal of property, plant & equipment (24 688) (1 181)
Depreciation 127 113 56 240
Charge for bad and doubtful debts 290 681 77 895
IAS 39 fair value adjustment (36 891) -
Operating cash flow before changes in operating
assets and liabilities 3 066 573 1 019 502
Changes in operating assets and liabilities
Financial liabilities held for trade 4 270 258 -
Deposits and other accounts 11 059 448 724 757
Advances and other accounts (9 240 313) (717 620)
Financial assets held for trade (1 067 756) -
8 088 210 1 026 639
Taxation
Corporate tax paid (155 411) (57 978)
Net cash inflow from operating activities 7 932 799 968 661
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of government & public sector secutities - (24 166)
Proceeds on disposal of property, plant & equipment 46 973 5 369
Purchase of property, plant & equipment (733 880) (429 435)
Proceeds on disposal of quoted and other investments - 39 364
Purchase of quoted and other investments (3 536 081) (42 325)
Net interest received on government and public sector securities 243 350 33 245
Net cash outflow from investing activities (3 979 638) (417 948)
Net cash inflow before financing activities 3 953 161 550 713
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from shares issue 77 976 2 467
Dividends paid (206 079) (234 344)
Net outflows flows from financing activities (128 103) (231 877)
Net increase in cash and cash equivalents 3 825 058 318 836
Cash and cash equivalents at the beginning of year 1 775 300 1 456 464
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 5 600 358 1 775 300
Cash and cash equivalents comprise cash and bank balances, treasury bills, fuel
bonds and bills receivable.
NOTES TO THE HISTORICAL GROUP FINANCIAL STATEMENTS
31 December 2001
a. BASIS OF PREPARATION
The financial statements are prepared under the historical cost convention
except that investment assets and liabilities held for trading are stated at
fair value in accordance with IAS 39. No procedures are adopted to reflect
thereon the impact of specific price changes and changes in the general level of
prices.
b. OTHER INCOME
2001 2000
Z$'000 Z$'000
Gains less losses from quoted and
other investments 250 636 205 674
Commission and fee income 246 631 92 640
Broking income 183 389 20 887
Profit on disposal of assets 24 688 1 181
Other operating income 29 857 9 177
735 201 329 559
c. OPERATING EXPENDITURE
The operating profit is after
charging the following:-
Administration costs 289 212 150 393
Audit fees 5 747 3 485
Depreciation:-
- fixed assets leased customers 1 404 833
- Own assets 125 709 49 407
Directors' remuneration:-
Fees for services as directors 1 404 920
Other directors emoluments 65 947 26 945
Staff costs 650 879 170 807
1 140 301 408 790
NOTES TO THE HISTORICAL GROUP FINANCIAL STATEMENTS
31 December 2001
d. TAXATION
Restated
2001 2000
Z$'000 Z$'000
Current tax 1 494 102 96 685
Deferred tax (credit)/ charge (580 224) 192 994
913 878 289 679
Financial institutions levy 140 013 -
1 053 891 289 679
The effective tax rate for the year is 35.7% compared to 31.5% for the year
ended 31 December 2000 as a result of the 5% financial institutions levy
introduced with effect from 1 January 2001.
e. DIVIDENDS 2001 2000
Z$'000 Z$'000
Interim dividend
24.5 cents per share on 415 991 100 shares
(2000 -17.9 cents per share on 398 518 246 shares) 101 918 71 352
Final proposed dividend
84.5 - cents per share on - 415 991 100 shares
(2000 - 25.5 cents per share on - 400 600 410 shares) 351 629 101 961
453 547 173 313
f. EARNINGS PER SHARE
f.1 Basic earnings per share
The calculation of basic earnings per share for the year ended 31 December 2001
of 449.6 cents (2000 - 157.2 cents) is based on profit after taxation
attributable to ordinary shareholders of Z$1 841 573 000 (2000 - Z$626 762 000)
and the weighted average shares in issue after share split of 409 578 313 (2000
- 398 603 814).
f.2 Headline earnings per share
The calculation of headline earnings per share for the year ended 31 December
2001 of 445.5 cents (2000 - 157.1 cents) is based on adjusted profit after
taxation attributable to ordinary shareholders of Z$1 824 514 000 (2000 - Z$626
031 000) and on the weighted average shares in issue after share split of 409
578 313 (2000 - weighted average of 398 603 814). The adjustments were as
follows:-
NOTES TO THE HISTORICAL GROUP FINANCIAL STATEMENTS
31 December 2001
f.2 Headline earnings per share (Cont'd)
2001 2000
Z$'000 Z$'000
Profit attributable to shareholders 1 841 573 626 762
Deduct non recurring items:
Profit on disposal of fixed assets (24 688) (1 181)
Tax effect thereon 7 629 450
1 824 514 626 031
Number of shares (000's) 409 578 398 604
This is calculated in accordance with Statement of Investment Practice No.1
issued by the Institute of Investment Management and Research to assist users of
accounts to identify earnings derived from trading activities. f.3 Diluted
earnings per share The diluted earnings per share for the year ended 31
December 2001 is 443.0 cents (2000 - 153.6 cents). The calculation is based on
profit after taxation attributable to ordinary shareholders of Z$1 841 573 000
(2000 - Z$626 762 000) and on the diluted shares in issue after share split of
415 713 858 (2000 - weighted average 408 142 714). The dilution in earnings
per share arises from 660 000 share options granted to senior employees, in
terms of the Employee Share Option Scheme outstanding at 31 December 2001.
f.4 Diluted headline earnings per share
The diluted headline earnings per share for the year ended 31 December 2001 is
438.9 cents (2000 - 153.4 cents). The calculation is based on adjusted profit
after taxation of Z$1 824 514 000 (2000 - Z$626 031 000) and on the diluted
shares in issue after share split of 415 713 858 (2000 - 408 142 714).
g. SHARE CAPITAL
g.1 Authorised
2001 2000 2001 2000
Shares Shares Z$'000 Z$'000
Ordinary shares of Z$0.25 each 560 000 000 560 000 000 140 000 140 000
NOTES TO THE HISTORICAL GROUP FINANCIAL STATEMENTS
31 December 2001
g.2 Issued and fully paid
2001 2000 2001 2000
Shares Shares Z$'000 Z$'000
At 1 January 400 600 410 398 518 246 100 150 99 630
Shares issued during the year 15 390 690 2 082 164 3 848 520
At 31 December 415 991 100 400 600 410 103 998 100 150
The issued share capital increased during the year as a result of the exercise
of 15 390 690 share options by managerial staff. Of the unissued ordinary
shares, 24 126 256 are reserved for options which may be granted in terms of a
share option scheme. As at 31 December 2001, 660 000 share options were
outstanding (2000 - 16 366 000).
h. SEGMENT REPORT
Segment information is presented in respect of the Group's business segments.
The business segments, retail and merchant banking, are based on the Group'
management and internal reporting structure.
NOTES TO THE HISTORICAL GROUP FINANCIAL STATEMENTS
31 December 2001
h. SEGMENT REPORTING (Cont'd)
Retail banking Merchant banking Consolidated
31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec
2001 2000 2001 2000 2001 2000
Z$'000 Z$'000 Z$'000 Z$'000 Z$'000 Z$'000
REVENUE
External interest and
other revenue 1 099 914 47 344 4 284 265 1 533 083 5 384 179 1 580 427
Total revenue 1 099 914 47 344 4 284 265 1 533 083 5 384 179 1 580 427
RESULT
Operating profit before
unallocated expenses 308 881 (2 585) 2 644 827 922 378 2 953 708 919 793
Unallocated corporate expenses 30 742 793 7 283 838
Income taxes (1 053 891) (289 679)
Minority interest (58 244) (3 352)
Profit attributable to
ordinary shareholders 1 841 573 626 762
NOTES TO THE HISTORICAL GROUP FINANCIAL STATEMENTS
31 December 2001
h. SEGMENT REPORTING (Cont'd)
Retail banking Merchant banking Consolidated
31 December 31 December 31 December 31 December 31 December 31 December
2001 2000 2001 2000 2001 2000
Z$'000 Z$'000 Z$'000 Z$'000 Z$'000 Z$'000
OTHER INFORMATION
Segment assets 7 113 806 490 929 23 250 469 6 792 909 30 364 275 7 283 838
Total assets 7 113 806 490 929 23 250 469 6 792 909 30 364 275 7 283 838
Segment liabilities 5 983 979 242 978 20 227 993 5 544 009 26 211 972 5 786 987
Unallocated corporate
liabilities/(assets)
Provision for current 1 594 447 115 743
taxation
Deferred taxation (378 518) 201 706
Minority interest 65 825 9 781
Total liabilities 5 983 979 242 978 20 227 993 5 544 009 27 493 726 6 114 217
Capital expenditure 455 105 283 279 278 775 146 156 733 880 429 435
Depreciation 94 776 24 767 32 337 31 473 127 113 56 240
This information is provided by RNS
The company news service from the London Stock Exchange
Nmbz Holdings Ld (LSE:NMB)
Historical Stock Chart
From Jun 2024 to Jul 2024
Nmbz Holdings Ld (LSE:NMB)
Historical Stock Chart
From Jul 2023 to Jul 2024
