TIDMNMB
RNS Number : 1538L
NMBZ Holdings Ld
31 August 2012
NMBZ HOLDINGS LIMITED
Holding company of
NMB BANK LIMITED (Registered Commercial Bank)
UNAUDITED ABRIDGED RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2012
HIGHLIGHTS
30 June 31 December 30 June
--------------------------- --------------- ------------ ------------
2012 2011 2011
--------------------------- --------------- ------------ ------------
Unaudited Audited Unaudited
--------------------------- --------------- ------------ ------------
Attributable profit (US$) 2 564 350 4 538 456 2 138 132
--------------------------- --------------- ------------ ------------
Basic earnings per share
(US cents) 0.09 0.16 0.08
--------------------------- --------------- ------------ ------------
Total deposits (US$) 149 889 217 139 226 144 102 525 937
--------------------------- --------------- ------------ ------------
Loans and advances (US$) 127 870 654 119 596 646 95 962 551
--------------------------- --------------- ------------ ------------
Total Equity (US$) 25 935 931 23 371 581 20 971 257
--------------------------- --------------- ------------ ------------
Enquiries:
NMBZ HOLDINGS LIMITED Tel: +263-4-759 651/9
James A Mushore, Group Chief Executive Officer, NMBZ Holdings
Limited jamesm@nmbz.co.zw
Francis Zimuto, Deputy Group Chief Executive Officer, NMBZ
Holdings Limited francis@nmbz.co.zw
Benefit P Washaya, Managing Director, NMB Bank Limited
benefitw@nmbz.co.zw
Benson Ndachena, Chief Financial Officer, NMBZ Holdings Limited
bensonn@nmbz.co.zw
Website: http://www.nmbz.co.zw
Email: enquiries@nmbz.co.zw
CHAIRMAN'S STATEMENT
INTRODUCTION
These results were achieved under a relatively stable economic
environment which was characterised by market liquidity constraints
and a general tightening in the economy.
GROUP RESULTS
Compliance with International Financial Reporting Standards
The abridged consolidated financial statements of the Group have
been prepared in accordance with International Financial Reporting
Standards (IFRS). The abridged financial statements have been
prepared in compliance with the Companies Act (Chapter 24:03) and
the Banking Act (Chapter 24:20).
Commentary on operating results
The profit before taxation was US$3 419 788 during the period
under review and this gave rise to an attributable profit of US$2
564 350. Net interest income was US$7 019 246 for the period.
Non-interest income amounted to US$6 460 875 and this was mainly as
a result of commissions and fee income (US$6 556 955).
Operating expenses amounted to US$10 481 773 and these were
driven largely by administration and staff related expenditure.
Impairment losses on loans and advances amounted to US$688 020
for the current period from a prior year amount of US$1 346
063.
Dividend
In view of the need to retain cash in the business and to
strengthen the statutory capital requirements for the banking
subsidiary, the Board has proposed not to declare a dividend.
Statement of financial position
The Group's total assets grew by 8% from US$167 287 333 as at 31
December 2011 to US$180 533 243 as at 30 June 2012. The assets
comprised mainly loans, advances and other accounts (US$105 665
263), financial assets at fair value through profit and loss (US$22
349 820), investment securities held to maturity (US$5 425 534),
cash and short term funds (US$35 244 836), investment properties
(US$2 632 500) and property and equipment (US$7 457 412). Gross
loans and advances increased by 7% from US$119 596 646 as at 31
December 2011 to US$127 870 654 as at 30 June 2012.
Total deposits increased by 8% from US$139 226 144 as at 31
December 2011 to US$149 889 217 as at 30 June 2012.
The Bank's liquidity ratio closed the period at 33% and this was
above the statutory requirement of 30% at 30 June 2012.
Subsequent to the reporting date, the Bank and the Holding
Company have received firm offers, which have been accepted by the
companies, for the purchase of half of an investment property owned
by the Bank for a consideration of US$2 150 000 and for the
purchase of the Holding company's shareholding in an associate for
a consideration of US$1 589 209. The financial effects of these
transactions, on a proforma basis, are fully disclosed in Note 20
of the abridged financial statements.
Capital
The banking subsidiary's capital adequacy ratio at 30 June 2012
calculated in accordance with the guidelines of the Reserve Bank of
Zimbabwe (RBZ) was 13.03% (31 December 2011 - 14.37%). The minimum
required by the RBZ is 10%. Subsequent to the half year end, the
Reserve Bank of Zimbabwe Governor announced in his Mid-Term
Monetary Policy Review Statement on 31 July 2012 an increase in
minimum capital requirements. The minimum capital for a commercial
bank has been increased from US$12.5 million to US$25 million by 31
December 2012, US$50 million by 30 June 2013, US$75 million by 31
December 2013 and US$100 million by 30 June 2014. The minimum
capital adequacy was increased from 10% to 12% effective 1 August
2012.
The Board has a medium term business strategic plan which
demonstrates compliance with the new minimum capital requirements
and this will be submitted to the Regulatory Authorities by the due
date of 30 September 2012.
The Group's equity increased by 11% from US$23 371 581 as at 31
December 2011 to US$25 935 931 as at 30 June 2012 as a result of an
increase in retained earnings.
OUTLOOK AND STRATEGY
The Group will continue to look for more lines of credit from
those institutions which are currently in a position to do business
with the country. The Group continues to explore growth
opportunities in the market.
DIRECTORATE
Mr M Mudukuti resigned from the Board with effect from 22 May
2012. I would like to thank Mr Mudukuti for his invaluable
contributions to the Board over his tenure.
APPRECIATION
I would like to thank our valued clients, shareholders and
Regulatory Authorities for their continued support in the period
under review. I would also like to express my profound gratitude to
my fellow Board members, management and staff for their continued
commitment and dedication which has led to the achievement of these
results.
T N MUNDAWARARA
CHAIRMAN
21 August 2012
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2012
Note 30 June 30 June
------------------------------ ----- ------------- --------------
2012 2011
------------------------------ ----- ------------- --------------
US$ US$
------------------------------ ----- ------------- --------------
Interest income 4 11 874 017 9 342 366
------------------------------ ----- ------------- --------------
Interest expense (4 854 771) (3 707 052)
------------------------------ ----- ------------- --------------
--------- ---------
------------------------------ ----- ------------- --------------
Net interest income 7 019 246 5 635 314
------------------------------ ----- ------------- --------------
Net foreign exchange
gains 905 133 503 528
------------------------------ ----- ------------- --------------
Share of profit of associate 204 327 10 078
------------------------------ ----- ------------- --------------
Non-interest income 5 6 460 875 6 207 966
------------------------------ ----- ------------- --------------
-------- ---------
------------------------------ ----- ------------- --------------
Net operating income 14 589 581 12 356 886
------------------------------ ----- ------------- --------------
Operating expenditure 6 (10 481 773) (8 081 016)
------------------------------ ----- ------------- --------------
Impairment losses on
loans and advances (688 020) (1 346 063)
------------------------------ ----- ------------- --------------
----------- ----------
------------------------------ ----- ------------- --------------
Profit before taxation 3 419 788 (2 929 807)
------------------------------ ----- ------------- --------------
Taxation 7 (855 438) (791 675)
------------------------------ ----- ------------- --------------
--------- ----------
------------------------------ ----- ------------- --------------
Profit for the period 2 564 350 2 138 132
------------------------------ ----- ------------- --------------
Other comprehensive
income, - -
net of tax
------------------------------ ----- ------------- --------------
--------- ---------
------------------------------ ----- ------------- --------------
Total comprehensive
income for the period 2 564 350 2 138 132
------------------------------ ----- ------------- --------------
========= =========
------------------------------ ----- ------------- --------------
Attributable to:
------------------------------ ----- ------------- --------------
Owners of the parent 2 564 350 2 138 132
------------------------------ ----- ------------- --------------
Non - controlling interest - -
------------------------------ ----- ------------- --------------
--------- ---------
------------------------------ ----- ------------- --------------
2 564 350 2 138 132
------------------------------ ----- ------------- --------------
========= =========
------------------------------ ----- ------------- --------------
Earnings per share (US
cents)
------------------------------ ----- ------------- --------------
- Basic 9.3 0.09 0.08
------------------------------ ----- ------------- --------------
- Diluted basic 9.3 0.09 0.08
------------------------------ ----- ------------- --------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2012
30 June 31 December
------------------------------ ------- ---------------------------------- ---------------------------------
SHAREHOLDERS' FUNDS Note 2012 2011
------------------------------ ------- ---------------------------------- ---------------------------------
US$ US$
------------------------------ ------- ---------------------------------- ---------------------------------
Unaudited Audited
------------------------------ ------- ---------------------------------- ---------------------------------
Share capital 10 78 598 78 598
------------------------------ ------- ---------------------------------- ---------------------------------
Capital reserves 17 061 357 16 806 650
------------------------------ ------- ---------------------------------- ---------------------------------
Retained earnings 8 795 976 6 486 333
------------------------------ ------- ---------------------------------- ---------------------------------
---------- ----------
------------------------------ ------- ---------------------------------- ---------------------------------
Total equity 25 935 931 23 371 581
------------------------------ ------- ---------------------------------- ---------------------------------
LIABILITIES
------------------------------ ------- ---------------------------------- ---------------------------------
Deposits and other accounts 11 116 564 605 102 608 918
------------------------------ ------- ---------------------------------- ---------------------------------
Financial liabilities at
fair value
through profit and loss 12 37 541 912 40 148 860
------------------------------ ------- ---------------------------------- ---------------------------------
Current tax liabilities 490 795 1 157 974
------------------------------ ------- ---------------------------------- ---------------------------------
---------- ----------
------------------------------ ------- ---------------------------------- ---------------------------------
Total liabilities 154 597 312 143 915 752
------------------------------ ------- ---------------------------------- ---------------------------------
---------- ----------
------------------------------ ------- ---------------------------------- ---------------------------------
Total equity and liabilities 180 533 243 167 287 333
------------------------------ ------- ---------------------------------- ---------------------------------
========== ==========
------------------------------ ------- ---------------------------------- ---------------------------------
ASSETS
------------------------------ ------- ---------------------------------- ---------------------------------
Cash and cash equivalents 13 35 244 836 32 265 953
------------------------------ ------- ---------------------------------- ---------------------------------
Financial assets at fair
value through
profit and loss 12.2 22 349 820 24 585 255
------------------------------ ------- ---------------------------------- ---------------------------------
Investment securities held
to maturity 12.4 5 425 534 -
------------------------------ ------- ---------------------------------- ---------------------------------
Loans, advances and other
accounts 14 105 665 263 99 802 065
------------------------------ ------- ---------------------------------- ---------------------------------
Quoted and other investments 305 108 309 028
------------------------------ ------- ---------------------------------- ---------------------------------
Deferred tax assets 656 776 421 383
------------------------------ ------- ---------------------------------- ---------------------------------
Investment in associate 18 795 994 591 667
------------------------------ ------- ---------------------------------- ---------------------------------
Investment properties 2 632 500 2 510 000
------------------------------ ------- ---------------------------------- ---------------------------------
Property and equipment 15 7 457 412 6 801 982
------------------------------ ------- ---------------------------------- ---------------------------------
---------- ---------
------------------------------ ------- ---------------------------------- ---------------------------------
Total assets 180 533 243 167 287 333
------------------------------ ------- ---------------------------------- ---------------------------------
========== ==========
------------------------------ ------- ---------------------------------- ---------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2012
Capital Reserves
---------------- -------------------- --------------------------------------------- -------------- ---------------
---------------- -------------------- ----------- -------------- ---------------- -------------- ---------------
Share Share Share Option Regulatory Retained
---------------- -------------------- ----------- -------------- ---------------- -------------- ---------------
Capital Premium Reserve Reserve Earnings Total
---------------- -------------------- ----------- -------------- ---------------- -------------- ---------------
US$ US$ US$ US$ US$ US$
---------------- -------------------- ----------- -------------- ---------------- -------------- ---------------
Balances at 31
December 2010 78 598 15 737 548 45 671 883 414 2 087 894 18 833 125
---------------- -------------------- ----------- -------------- ---------------- -------------- ---------------
Total
comprehensive
loss for the
six
months - - - - 2 138 132 2 138 132
---------------- -------------------- ----------- -------------- ---------------- -------------- ---------------
Impairment
allowance
reversal for
loans and
advances - - - (20 453) 20 453 -
---------------- -------------------- ----------- -------------- ---------------- -------------- ---------------
------- --------- ------- -------- --------- ----------
---------------- -------------------- ----------- -------------- ---------------- -------------- ---------------
Balances at 30
June 2011 78 598 15 737 548 45 671 862 961 4 246 479 20 971 257
---------------- -------------------- ----------- -------------- ---------------- -------------- ---------------
Total
comprehensive
income for the
six months - - - - 2 400 324 2 400 324
---------------- -------------------- ----------- -------------- ---------------- -------------- ---------------
Impairment
allowance for
loans and
advances - - - 160 470 (160 470) -
---------------- -------------------- ----------- -------------- ---------------- -------------- ---------------
------- --------- ------- -------- --------- ---------
---------------- -------------------- ----------- -------------- ---------------- -------------- ---------------
Balances at 31
December 2011 78 598 15 737 548 45 671 1 023 431 6 486 333 23 371 581
---------------- -------------------- ----------- -------------- ---------------- -------------- ---------------
Total
comprehensive
income for the
six months - - - - 2 564 350 2 564 350
---------------- -------------------- ----------- -------------- ---------------- -------------- ---------------
Impairment
allowance for
loans and
advances - - - 254 707 (254 707) -
---------------- -------------------- ----------- -------------- ---------------- -------------- ---------------
-------- ---------- ------- -------- --------- ----------
---------------- -------------------- ----------- -------------- ---------------- -------------- ---------------
Balances at 30
June 2012 78 598 15 737 548 45 671 1 278 138 8 795 976 25 935 931
---------------- -------------------- ----------- -------------- ---------------- -------------- ---------------
======== ========== ======= ======== ========= =========
---------------- -------------------- ----------- -------------- ---------------- -------------- ---------------
CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended 30 June 2012
30 June 30 June
----------------------------------------------- ------------ -------------
2012 2011
----------------------------------------------- ------------ -------------
US$ US$
----------------------------------------------- ------------ -------------
CASH FLOWS FROM OPERATING ACTIVITIES
----------------------------------------------- ------------ -------------
Profit before taxation 3 419 788 2 929 807
----------------------------------------------- ------------ -------------
Non-cash items
----------------------------------------------- ------------ -------------
-Depreciation 634 736 256 006
----------------------------------------------- ------------ -------------
-Impairment losses on loans and advances 688 020 1 346 063
----------------------------------------------- ------------ -------------
-Investment properties fair value adjustment (122 500) 152 500
----------------------------------------------- ------------ -------------
-Quoted and other investments fair value
adjustment 3 919 (38 635)
----------------------------------------------- ------------ -------------
-Profit on disposal of quoted and other
investments - (27 173)
----------------------------------------------- ------------ -------------
-Profit on disposal of property and equipment (725) -
----------------------------------------------- ------------ -------------
-Impairment reversal on land and buildings (70 000) (200 000)
----------------------------------------------- ------------ -------------
-Share of associate profit (204 327) (10 078)
----------------------------------------------- ------------ -------------
---------- ----------
----------------------------------------------- ------------ -------------
Operating cash flows before changes in
operating assets and
liabilities 4 348 911 4 408 490
----------------------------------------------- ------------ -------------
--------- ---------
----------------------------------------------- ------------ -------------
Changes in operating assets and liabilities
----------------------------------------------- ------------ -------------
Financial liabilities at fair value through
profit and loss (2 606 948) 13 863 313
----------------------------------------------- ------------ -------------
Deposits and other accounts 13 955 687 9 627 082
----------------------------------------------- ------------ -------------
Loans, advances and other accounts (6 551 219) (16 920 835)
----------------------------------------------- ------------ -------------
Financial assets at fair value through
profit and loss 2 235 435 (7 591 087)
----------------------------------------------- ------------ -------------
Investment securities held to maturity (5 425 534) -
----------------------------------------------- ------------ -------------
--------- -------
----------------------------------------------- ------------ -------------
5 956 332 3 386 963
----------------------------------------------- ------------ -------------
-------- -------
----------------------------------------------- ------------ -------------
Taxation
----------------------------------------------- ------------ -------------
Capital gains tax paid - (2 998)
----------------------------------------------- ------------ -------------
Corporate tax paid (1 758 006) (927 002)
----------------------------------------------- ------------ -------------
--------- --------
----------------------------------------------- ------------ -------------
Net cash flows from operating activities 4 198 326 2 456 963
----------------------------------------------- ------------ -------------
--------- --------
----------------------------------------------- ------------ -------------
CASH FLOWS FROM INVESTING ACTIVITIES
----------------------------------------------- ------------ -------------
Purchase of property and equipment (1 228 446) (1 421 247)
----------------------------------------------- ------------ -------------
Proceeds on disposal of property and 9 003 -
equipment
----------------------------------------------- ------------ -------------
Proceeds from disposal of quoted and
other investments - 59 961
----------------------------------------------- ------------ -------------
--------- --------
----------------------------------------------- ------------ -------------
Net cash outflow from investing activities (1 219 443) (1 361 286)
----------------------------------------------- ------------ -------------
--------- --------
----------------------------------------------- ------------ -------------
Net cash inflow before financing activities 2 978 883 1 095 677
----------------------------------------------- ------------ -------------
--------- --------
----------------------------------------------- ------------ -------------
CASH FLOWS FROM FINANCING ACTIVITIES
----------------------------------------------- ------------ -------------
Gross proceeds from rights issue - -
----------------------------------------------- ------------ -------------
Share issue expenses - -
----------------------------------------------- ------------ -------------
-------- ---------
----------------------------------------------- ------------ -------------
Net cash inflow from financing activities - -
----------------------------------------------- ------------ -------------
-------- ---------
----------------------------------------------- ------------ -------------
Net increase in cash and cash equivalents 2 978 883 1 095 677
----------------------------------------------- ------------ -------------
Cash and cash equivalents at the beginning
of the period 32 265 953 18 346 939
----------------------------------------------- ------------ -------------
--------- ---------
----------------------------------------------- ------------ -------------
Cash and cash equivalents at the end
of the period (note 13) 35 244 836 19 442 616
----------------------------------------------- ------------ -------------
========= =========
----------------------------------------------- ------------ -------------
NOTES TO THE ABRIDGED FINANCIAL STATEMENTS
for the six months ended 30 June 2012
1. REPORTING ENTITY
NMBZ Holdings Limited is incorporated and domiciled in Zimbabwe
and is an investment holding company. Its registered office is 64
Kwame Nkrumah Avenue, Harare. Its principal operating subsidiary is
NMB Bank Limited which is engaged in banking and other companies
hold investments.
2. ACCOUNTING CONVENTION
Statement of compliance
The abridged consolidated financial statements have been
prepared in accordance with International Financial Reporting
Standards (IFRSs) and interpretations adopted by the International
Accounting Standards Board.
The abridged consolidated financial statements have been
prepared in compliance with the Companies Act (Chapter 24:03) and
the Banking Act (Chapter 24:20).
The abridged consolidated financial statements were approved by
the Board of Directors on 21 August 2012.
2.1 Basis of preparation
The abridged consolidated financial statements have been
prepared under the historical cost convention except for quoted and
other investments, investment properties and financial instruments
which are carried at fair value, loans and advances which are
stated at amortised cost and land and buildings which are stated at
revalued amount. These abridged financial statements are reported
in United States of America dollars and rounded to the nearest
dollar.
2.2 Comparative financial information
The abridged consolidated financial statements comprise a
consolidated statement of financial position, a consolidated
statement of comprehensive income, a consolidated statement of
changes in equity and a consolidated statement of cash flows. The
comparative statement of comprehensive income and the comparative
statements of changes in equity and cash flows are for six
months.
2.3 Use of estimates and judgements
The preparation of abridged financial statements requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised and in any future periods
affected.
In the process of applying the Group's accounting policies,
management has made the following judgements which have the most
significant effect on the amounts recognised in the abridged
consolidated financial statements:
2.3.1 Deferred tax asset
In determining the amounts used for taxation purposes for assets
purchased (in ZWD) prior to 1 January 2009 the directors referred
to applicable effective exchange rates at the date of acquisition
of assets or incurring of liabilities. The Zimbabwe Revenue
Authorty (ZIMRA), announced methods to be used to account for the
deferred tax arising on assets purchased in ZWD. These methods
require the preparer to first estimate the equivalent USD value of
those assets at the time of purchase. Since the measurement of
transactions in Zimbabwe dollars in the prior periods is affected
by several economic variables such as mode of payment and
hyperinflation this is an area where the directors have had to
apply their judgement and acknowledge there could be significant
variations in the results achieved depending on assumptions
made.
2.3.2 Land and buildings
The properties were valued by professional valuers. The valuer
applied the rental yield method and comparable market evidence to
assess fair value of land and buildings. The determined fair value
of land and buildings is most sensitive to the estimated yield as
well as the long term vacancy rate. In addition, the property
market is currently not stable due to liquidity constraints and
hence comparable values are also not stable.
2.3.3 Investment properties and property and equipment
Investment properties were valued by professional valuers.
The professional valuers considered comparable market evidence
of recent sale transactions and those transactions where firm
offers had been made but awaiting acceptance. In addition, the
property market is currently not stable due to liquidity
constraints and hence comparable values are also not stable.
The directors exercised their judgment in determining the
residual values of the other property and equipment which have been
determined as nil.
2.3.4 RBZ Bond
The RBZ Bond was reclassified from financial assets at fair
value through profit and loss to investment securities held to
maturity as there is currently no market information to facilitate
application of fair value principles. There is currently no active
market for these bonds.
2.3.5 Impairment losses on loans and advances
The Bank reviews all loans and advances at each reporting date
to assess whether an impairment loss should be recorded in profit
or loss. In particular, judgement by management is required in the
estimation of the amount and timing of future cash flows when
determining the impairment loss. In estimating these cash flows,
the Bank makes judgements about the borrower's financial situation
and the net realisable value of collateral. These estimates are
based on assumptions about a number of factors and actual results
may differ, resulting in future changes to the allowance. Loans and
advances that have been assessed individually and found not to be
impaired and all individually insignificant loans and advances are
then assessed collectively, in groups of assets with similar risk
characteristics, to determine whether provision should be made due
to incurred loss events for which there is objective evidence but
whose effects are not yet evident. The collective assessment takes
account of data from the loan portfolio (such as credit quality,
levels of arrears, credit utilisation, loan to collateral ratios
etc.), concentrations of risks and economic data.
The impairment loss on loans and advances is disclosed in more
detail under note 14.3.
2.3.6 Going concern
The Directors have assessed the ability of the Group to continue
operating as a going concern and believe that the preparation of
these abridged financial statements on a going concern basis is
still appropriate.
2.3.7 RBZ Statutory reserves
The statutory reserves that were owed to banks by the Reserve
Bank of Zimbabwe were converted to tradable interest bearing
instruments effective 1 January 2012 (refer to note 14.1.1).
3. ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of
these abridged financial statements are set out in Note 2 and 3.
These policies have been consistently applied unless otherwise
stated.
3.1 Financial instruments
3.1.1 Classification
Financial assets and liabilities at fair value through profit
and loss include financial assets and liabilities held for trading
i.e. those that the Group principally holds for the purpose of
short-term profit taking as well as those that were, upon initial
recognition, designated by the entity as financial assets or
liabilities at fair value through profit and loss. There is no
reclassification into or out of this category as per IAS 39.
Loans and receivables are non-derivative financial assets with
fixed or determinable payments that are not quoted in an active
market other than those classified as held-for-trading and the
Group upon initial recognition designates as at fair value through
profit or loss and those the Group upon initial recognition
designates as available-for-sale.
Held-to-maturity investments are non-derivative financial assets
with fixed or determinable payments and fixed maturity that the
Group has the positive intention and ability to hold to
maturity.
Financial assets available-for-sale are non-derivative financial
assets that are designated as available-for- sale or are not
classified as loans and receivables, held-to-maturity investments
or financial assets at fair value through profit or loss.
3.1.2 Recognition
The Group recognises financial assets at fair value through
profit and loss and available for sale assets on the date it
commits to purchase the assets. From this date any gains and losses
arising from changes in fair value of the assets are recognised in
the income statement and other comprehensive income
respectively.
Held-to-maturity investments and loans and receivables are
recognised at cost which is the fair value of the consideration
given on the day that they are transferred to the Group.
3.1.3 Measurement
Financial assets and liabilities are measured initially at fair
value. Subsequent to initial recognition, financial assets and
liabilities are measured at fair value through profit and loss and
available-for-sale financial assets are measured at fair value,
except that any instrument that does not have a quoted market price
in an active market and whose fair value cannot be reliably
measured is stated at cost, less impairment losses.
Held-to-maturity investments and loans and receivables are
measured at amortised cost less impairment losses. Amortised cost
is calculated using the effective interest rate method. Premiums
and discounts, including initial transaction costs, are included in
the carrying amount of the related instrument and amortised based
on the effective interest rate of the instrument.
3.1.4 Fair value measurement principles
The fair value of financial instruments is based on their quoted
market price at the reporting date without any deduction for
transaction costs. If a quoted market price is not available, the
fair value of the instrument is estimated using pricing models or
discounted cash flow techniques.
Where discounted cash flow techniques are used, estimated future
cash flows are based on management's best estimates and the
discount rate is a market related rate at the reporting date for an
instrument with similar terms and conditions. Where pricing models
are used, inputs are based on market related measures at the
reporting date.
3.2 Investment properties
Investment properties are stated at fair value. Gains and losses
arising from a change in fair value of investment properties are
recognized in the income statement. The fair value is determined
half yearly and at the end of each reporting period, by a
registered professional valuer.
3.3 Share - based payments
The Group issues share options to certain employees in terms of
the Employee Share Option Scheme. Share options are measured at
fair value at the date of grant. The fair value determined at the
date of grant of the options is expensed on a straight-line basis
over the vesting period, based on the Group's estimate of shares
that will eventually vest. Fair value is measured using the
Black-Scholes option pricing model. The expected life used in the
model has been adjusted, based on management's best estimate, for
the effects of non-transferability, exercise restrictions and other
behavioral considerations.
3.4 Property and equipment
International Accounting Standard 16 (IAS 16) stipulates that
the residual value and the useful life of an asset must be reviewed
at least each financial year-end. If the residual value of an asset
increases by an amount equal to or greater than the asset's
carrying amount, then the depreciation of the asset ceases.
Depreciation will resume only when the residual value decreases to
an amount below the asset's carrying amount.
4. INTEREST INCOME
30 June 30 June
--------------------------------- ----------- ----------
2012 2011
--------------------------------- ----------- ----------
US$ US$
--------------------------------- ----------- ----------
Loans and advances to banks 375 709 755 026
--------------------------------- ----------- ----------
Loans and advances to customers 9 629 744 6 446 599
--------------------------------- ----------- ----------
Investment securities 1 840 550 2 129 138
--------------------------------- ----------- ----------
Other 28 014 11 603
--------------------------------- ----------- ----------
--------- --------
--------------------------------- ----------- ----------
11 874 017 9 342 366
--------------------------------- ----------- ----------
========= =========
--------------------------------- ----------- ----------
5. non-interest income
30 June 30 June
--------------------------------------------- ----------- ----------
2012 2011
--------------------------------------------- ----------- ----------
US$ US$
--------------------------------------------- ----------- ----------
Net gains from quoted and other investments 2 406 38 635
--------------------------------------------- ----------- ----------
Commission and fee income 6 556 955 6 246 738
--------------------------------------------- ----------- ----------
Fair value adjustment on investment
properties 122 500 (152 500)
--------------------------------------------- ----------- ----------
Profit on disposal of quoted and other
investments - 27 173
--------------------------------------------- ----------- ----------
Fair value gain/(loss) on trading financial
instruments (215 743) 48 795
--------------------------------------------- ----------- ----------
Fair value loss on other financial
instruments (8 622) (5 886)
--------------------------------------------- ----------- ----------
Profit on disposal of property and 725 -
equipment
--------------------------------------------- ----------- ----------
Other net operating income 2 654 5 011
--------------------------------------------- ----------- ----------
--------- ---------
--------------------------------------------- ----------- ----------
6 460 875 6 207 966
--------------------------------------------- ----------- ----------
======== ========
--------------------------------------------- ----------- ----------
6. Operating EXPENDITURE
30 June 30 June
------------------------------------------- ----------- --------------
2012 2011
------------------------------------------- ----------- --------------
US$ US$
------------------------------------------- ----------- --------------
The operating profit is after charging
the following:-
------------------------------------------- ----------- --------------
Administration costs 5 076 333 4 116 047
------------------------------------------- ----------- --------------
Staff costs - salaries, allowances
and related costs 4 840 704 3 908 963
------------------------------------------- ----------- --------------
Depreciation 634 736 256 006
------------------------------------------- ----------- --------------
Impairment reversal on land and buildings (70 000) 200 000
------------------------------------------- ----------- --------------
--------- -------------
------------------------------------------- ----------- --------------
10 481 773 8 081 016
------------------------------------------- ----------- --------------
========= ========
------------------------------------------- ----------- --------------
7. taxation
30 June 30 June
--------------- ---------- ---------------
2012 2011
--------------- ---------- ---------------
US$ US$
--------------- ---------- ---------------
Current tax 1 050 982 1 158 488
--------------- ---------- ---------------
Aids levy 31 550 33 210
--------------- ---------- ---------------
Deferred tax (227 094) (403 021)
--------------- ---------- ---------------
Capital gains - 2 998
--------------- ---------- ---------------
-------- ------------
--------------- ---------- ---------------
855 438 (791 675)
--------------- ---------- ---------------
======= ========
--------------- ---------- ---------------
8. IMPAIRMENT LOSSES ON LOANS AND ADVANCES
Impairment losses are applied to write off advances in part or
in whole when they are considered partly or wholly irrecoverable.
The aggregate impairment losses which are made during the year are
dealt with as per paragraph 8.3.
8.1 Specific provisions
Specific provisions are made where the repayment of identified
advances is in doubt and reflect estimates of the loss. Advances
are written off against specific provisions once the probability of
recovering any significant amounts becomes remote.
8.2 Portfolio provisions
The portfolio provision relates to the inherent risk of losses
which, although not separately identified, is known to be present
in any loan portfolio.
8.3 Regulatory Guidelines and International Financial Reporting
Standards Requirements
The Banking Regulations 2000 gives guidance on provisioning for
doubtful debts and stipulates certain minimum percentages to be
applied to the respective categories of the loan book.
International Accounting Standard 39, Financial Instruments
Recognition and Measurement (IAS 39), prescribes the provisioning
for impairment losses based on the actual loan losses incurred in
the past applied to the sectoral analysis of book debts and the
discounting of expected cash flows on specific problem
accounts.
The two prescriptions are likely to give different results. The
Group has taken the view that where the IAS 39 charge is less than
the amount provided for in the Banking Regulations, the difference
is recognized directly in equity as a transfer from retained
earnings to a regulatory reserve and where it is more, the full
amount will be charged to the profit or loss.
8.4 Non-performing loans
Interest on loans and advances is accrued to income until such
time as reasonable doubt exists about its collectability,
thereafter and until all or part of the loan is written off,
interest continues to accrue on customers' accounts, but is not
included in income. Such suspended interest is deducted from loans
and advances in the statement of financial position. This policy
meets the requirements of the Banking Regulations 2000 issued by
the RBZ.
9. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the profit
for the year attributable to ordinary equity holders of NMBZ
Holdings Limited by the weighted average number of ordinary shares
outstanding during the year.
Diluted earnings per share is calculated by dividing the profit
attributable to ordinary equity holders of NMBZ Holdings Limited
adjusted for the after tax effect of: (a) any dividends or other
items related to dilutive potential ordinary shares deducted in
arriving at profit or loss attributable to ordinary equity holders
of the parent entity; (b) any interest recognised in the period
related to dilute potential ordinary shares; (c) any other changes
in income or expense that would result from the conversion of the
dilutive potential ordinary shares, by the weighted average number
of ordinary shares outstanding during the year plus the weighted
average number of ordinary shares that would be issued on the
conversion of all the dilutive potential ordinary shares into
ordinary shares.
9.1 Earnings
30 June 30 June
------- ---------- ----------
2012 2011
------- ---------- ----------
US$ US$
------- ---------- ----------
Basic 2 564 350 2 138 132
------- ---------- ----------
9.2 Number of shares
30 June 30 June
------------------------------------- ---------------------- -----------------------
2012 2011
------------------------------------- ---------------------- -----------------------
Weighted average number of ordinary
shares for basic
earnings per share 2 807 107 289 2 807 107 289
------------------------------------- ---------------------- -----------------------
Effect of dilution:
------------------------------------- ---------------------- -----------------------
Shares options outstanding 10 742 869 10 742 869
------------------------------------- ---------------------- -----------------------
----------- ---------
------------------------------------- ---------------------- -----------------------
2 817 850 158 2 817 850 158
------------------------------------- ---------------------- -----------------------
============ ============
------------------------------------- ---------------------- -----------------------
9.3 Earnings per share (US cents)
30 June 30 June
--------------- -------- --------
2012 2011
--------------- -------- --------
Basic 0.09 0.08
--------------- -------- --------
Diluted basic 0.09 0.08
--------------- -------- --------
10. SHARE CAPITAL
30 June 31 December 30 June 31December
----------------------- --------------- --------------- --------- ------------
2012 2011 2012 2011
----------------------- --------------- --------------- --------- ------------
Shares million Shares million US$ US$
----------------------- --------------- --------------- --------- ------------
----------------------- --------------- --------------- --------- ------------
10.1 Authorised
----------------------- --------------- --------------- --------- ------------
Ordinary shares of
US$0.000028
each 3 500 3 500 98 000 98 000
----------------------- --------------- --------------- --------- ------------
==== ==== ===== =====
----------------------- --------------- --------------- --------- ------------
30 June 31 December 30 June 31 December
----------------------- --------------- --------------- --------- ------------
2012 2011 2012 2011
----------------------- --------------- --------------- --------- ------------
Shares Shares US$ US$
----------------------- --------------- --------------- --------- ------------
million million
----------------------- --------------- --------------- --------- ------------
10.2 Issued and fully
paid
----------------------- --------------- --------------- --------- ------------
At 1 January 2 807 2 807 78 598 78 598
----------------------- --------------- --------------- --------- ------------
Shares issued - share - - - -
options
----------------------- --------------- --------------- --------- ------------
----- ----- ------ -----
----------------------- --------------- --------------- --------- ------------
2 807 2 807 78 598 78 598
----------------------- --------------- --------------- --------- ------------
===== ===== ====== =====
----------------------- --------------- --------------- --------- ------------
Of the 692 892 711 unissued ordinary shares, options which may
be granted in terms of the NMBZ 2005 Employee Share Option Scheme
(ESOS) amounted to 85 360 962 and out of these 1 670 869 had not
been issued by 19 June 2012 when a new 2012 ESOS was approved at
the Annual General Meeting on 19 June 2012. The new Scheme
effectively replaces the 2005 ESOS. As at 30 June 2012, 9 072 000
share options out of the issued had not been exercised.
Share options which may be granted in terms of the 2012 ESOS
amount to 280 710 729 and allocations in terms of the Scheme will
only commence in 2013.
Subject to the provisions of section 183 of the Companies Act
(Chapter 24:03), the unissued shares are under the control of the
directors.
11. DepositS and other accounts
11.1 Deposits and other accounts 30 June 31 December
------------------------------------------------------ --------------- ---------------
2012 2011
------------------------------------------------------ --------------- ---------------
US$ US$
------------------------------------------------------ --------------- ---------------
Deposits from banks and other financial institutions 50 052 413 43 009 970
------------------------------------------------------ --------------- ---------------
Current and deposit accounts 99 836 804 96 216 174
------------------------------------------------------ --------------- ---------------
---------- ----------
------------------------------------------------------ --------------- ---------------
Total deposits 149 889 217 139 226 144
------------------------------------------------------ --------------- ---------------
Less: Financial liabilities at fair value
through profit and loss* (note
12.1) (37 541 912) (40 148 860)
------------------------------------------------------ --------------- ---------------
---------- ----------
------------------------------------------------------ --------------- ---------------
112 347 305 99 077 284
------------------------------------------------------ --------------- ---------------
Trade and other payables 4 217 300 3 531 634
------------------------------------------------------ --------------- ---------------
---------- ---------
------------------------------------------------------ --------------- ---------------
116 564 605 102 608 918
------------------------------------------------------ --------------- ---------------
========== ==========
------------------------------------------------------ --------------- ---------------
*The above are all financial liabilities at fair value through
profit and loss designated as such upon initial recognition. The
fair value of the above is the same as the cost. The deposits are
payable on demand, have variable interest rates and varying
security.
11.2 Maturity analysis
30 June 31 December
--------------------- ------------ ------------
2012 2011
--------------------- ------------ ------------
US$ US$
--------------------- ------------ ------------
Less than one month 118 654 337 105 423 635
--------------------- ------------ ------------
1 to 3 months 12 692 344 17 727 720
--------------------- ------------ ------------
3 to 6 months 8 909 144 13 874 789
--------------------- ------------ ------------
6 months to 1 year 9 633 392 2 200 000
--------------------- ------------ ------------
1 to 5 years - -
--------------------- ------------ ------------
Over 5 years - -
--------------------- ------------ ------------
---------- ---------
--------------------- ------------ ------------
149 889 217 139 226 144
--------------------- ------------ ------------
========== =========
--------------------- ------------ ------------
30 June 31 December
---------------------------------------- ---------------- ----------- ---------------- -----
2012 2011
---------------------------------------- ---------------- ----------- ---------------- -----
US$ % US$ %
---------------------------------------- ---------------- ----------- ---------------- -----
11.3 Sectoral analysis of deposits
---------------------------------------- ---------------- ----------- ---------------- -----
Banks and other financial institutions 50 052 413 33 43 009 970 31
---------------------------------------- ---------------- ----------- ---------------- -----
Transport and telecommunications
companies 10 337 459 7 5 297 087 4
---------------------------------------- ---------------- ----------- ---------------- -----
Mining companies 1 998 936 1 1 144 080 1
---------------------------------------- ---------------- ----------- ---------------- -----
Municipalities and parastatals 18 008 065 12 19 879 203 14
---------------------------------------- ---------------- ----------- ---------------- -----
Manufacturing 17 423 740 12 16 811 439 12
---------------------------------------- ---------------- ----------- ---------------- -----
Distribution 4 798 314 3 8 046 243 6
---------------------------------------- ---------------- ----------- ---------------- -----
Services 10 901 333 7 13 678 483 10
---------------------------------------- ---------------- ----------- ---------------- -----
Agriculture 3 796 867 3 3 180 921 2
---------------------------------------- ---------------- ----------- ---------------- -----
Individuals 23 337 188 16 21 438 755 15
---------------------------------------- ---------------- ----------- ---------------- -----
Other deposits 9 234 902 6 6 739 963 5
---------------------------------------- ---------------- ----------- ---------------- -----
--------------- ---------- --------------- ----
---------------------------------------- ---------------- ----------- ---------------- -----
139 226
149 889 217 100 144 100
---------------------------------------- ---------------- ----------- ---------------- -----
========= ====== ========= ===
---------------------------------------- ---------------- ----------- ---------------- -----
12. FINANCIAL INSTRUMENTS
Fair Fair
------------------------------- -------------- --------------- ---------------- --------------
Cost Value Value Cost
------------------------------- -------------- --------------- ---------------- --------------
30 June 30 June 31 December 31 December
------------------------------- -------------- --------------- ---------------- --------------
2012 2012 2011 2011
------------------------------- -------------- --------------- ---------------- --------------
12.1 Financial liabilities US$ US$ US$ US$
at fair value through profit
and loss*
------------------------------- -------------- --------------- ---------------- --------------
10 226
Fixed term deposits 10 226 510 510 8 910 353 8 910 353
------------------------------- -------------- --------------- ---------------- --------------
Negotiable Certificates 27 315
of Deposits 27 315 402 402 31 238 507 31 238 507
------------------------------- -------------- --------------- ---------------- --------------
------------- -------------- --------------- -------------
------------------------------- -------------- --------------- ---------------- --------------
Total financial liabilities
at fair value 37 541
through profit and loss 37 541 912 912 40 148 860 40 148 860
------------------------------- -------------- --------------- ---------------- --------------
======== ======== ========= ========
------------------------------- -------------- --------------- ---------------- --------------
All changes in the period to the fair value of the financial
liabilities are attributable to changes in the related credit
risk.
*All financial liabilities at fair value through profit and loss
were designated as such upon initial recognition.
Fair Fair
------------------------------ ---------------- -------------- --------------- --------------
Value Cost Value Cost
------------------------------ ---------------- -------------- --------------- --------------
30 June 30 June 31 December 31 December
------------------------------ ---------------- -------------- --------------- --------------
2012 2012 2011 2011
------------------------------ ---------------- -------------- --------------- --------------
12.2 Financial assets at US$ US$ US$ US$
fair value through profit
and loss
------------------------------ ---------------- -------------- --------------- --------------
Government and public sector
securities - - 2 126 657 2 126 657
------------------------------ ---------------- -------------- --------------- --------------
RBZ Forex Bond (1) Note
(12.4) - - 2 126 657 2 126 657
------------------------------ ---------------- -------------- --------------- --------------
21 154
Bills-own acceptances (2) 21 107 902 454 22 401 174 22 196 067
------------------------------ ---------------- -------------- --------------- --------------
Promissory Notes (2) 1 241 918 1 260 525 57 424 57 884
------------------------------ ---------------- -------------- --------------- --------------
--------------- ------------- -------------- -------------
------------------------------ ---------------- -------------- --------------- --------------
Total financial assets
at fair value 22 414
through profit and loss 22 349 820 979 24 585 255 24 380 608
------------------------------ ---------------- -------------- --------------- --------------
========= ======== ========= ========
------------------------------ ---------------- -------------- --------------- --------------
All changes in the period to the fair value of the financial
assets are attributable to changes in related credit risk.
(1) Financial assets at fair value through profit and loss were classified as held for trading in accordance
with IAS 39.
(2) Financial assets at fair value through profit and loss were
designated as such upon initial recognition
12.3 Financial liabilities at fair value through
profit and loss
30 June 31 December
-------------------- ----------- ------------
2012 2011
-------------------- ----------- ------------
US$ US$
-------------------- ----------- ------------
Less than 1 month 19 442 077 10 770 543
-------------------- ----------- ------------
1 to 3 months 2 907 743 10 150 024
-------------------- ----------- ------------
3 to 6 months - 3 664 688
-------------------- ----------- ------------
6 months to 1 year - -
-------------------- ----------- ------------
1 to 5 years - -
-------------------- ----------- ------------
Over 5 years - -
-------------------- ----------- ------------
--------- ---------
-------------------- ----------- ------------
22 349 820 24 585 255
-------------------- ----------- ------------
========= =========
-------------------- ----------- ------------
12.4 Financial liabilities at fair value through
profit and loss
30 June 31 December
---------------- ---------- ------------
2012 2011
---------------- ---------- ------------
US$ US$
---------------- ---------- ------------
RBZ Forex Bonds 5 425 534 -
---------------- ---------- ------------
The RBZ Forex Bonds were reclassified from financial assets at
fair value through profit and loss to investment securities
designated as held to maturity as there is no active market for the
bonds and there is lack of market information to facilitate
application of fair value principles.
12.5 Maturity analysis of investment securities held to
maturity
30 June 31 December
-------------------- ---------- ------------
2012 2011
-------------------- ---------- ------------
US$ US$
-------------------- ---------- ------------
Less than one month - -
-------------------- ---------- ------------
1 to 3 months - -
-------------------- ---------- ------------
3 to 6 months 2 195 520 -
-------------------- ---------- ------------
6 months to 1 year - -
-------------------- ---------- ------------
1 to 5 years 3 230 014 -
-------------------- ---------- ------------
Over 5 years - -
-------------------- ---------- ------------
-------- --------
-------------------- ---------- ------------
5 425 534 -
-------------------- ---------- ------------
======== ========
-------------------- ---------- ------------
13. CASH AND CASH EQUIVALENTS
30 June 31 December
----------------------------------- ----------- ------------
2012 2011
----------------------------------- ----------- ------------
US$ US$
----------------------------------- ----------- ------------
Balances with Central Bank 15 073 033 12 255 166
----------------------------------- ----------- ------------
Current, nostro accounts and cash 20 171 803 20 010 787
----------------------------------- ----------- ------------
---------- --------
----------------------------------- ----------- ------------
35 244 836 32 265 953
----------------------------------- ----------- ------------
========== ========
----------------------------------- ----------- ------------
14. LOANS, ADVANCES AND OTHER ACCOUNTS
14.1 Total loans, advances and other accounts
30 June 31 December
---------------------------- ------------ ------------
2012 2011
---------------------------- ------------ ------------
14.1.1 Advances US$ US$
---------------------------- ------------ ------------
Fixed term loans 30 280 136 36 116 550
---------------------------- ------------ ------------
Local loans and overdrafts 70 083 050 56 619 403
---------------------------- ------------ ------------
---------- ---------
---------------------------- ------------ ------------
100 363 186 92 735 953
---------------------------- ------------ ------------
Statutory reserves* - 3 231 838
---------------------------- ------------ ------------
Other accounts 5 302 077 3 834 274
---------------------------- ------------ ------------
--------- ---------
---------------------------- ------------ ------------
105 665 263 99 802 065
---------------------------- ------------ ------------
========= ========
---------------------------- ------------ ------------
*The amounts that were previously owed to banks by the Reserve
Bank of Zimbabwe were converted into tradable interest bearing
instruments effective 1 January 2012.The instruments carry liquid
asset status and they have the following terms;
% of Total Tenor Interest rate
----------- -------- --------------
30% 2 years 2.5% p.a
----------- -------- --------------
30% 3 years 3.0% p.a
----------- -------- --------------
40% 4 years 3.5% p.a
----------- -------- --------------
The current year amount is included in note 12.2.
14.1.2 Maturity analysis
30 June 31 December
--------------------------------------------- ------------- -------------
2012 2011
--------------------------------------------- ------------- -------------
US$ US$
--------------------------------------------- ------------- -------------
Less than one month 94 190 598 75 590 457
--------------------------------------------- ------------- -------------
1 to three months 5 429 612 22 083 400
--------------------------------------------- ------------- -------------
3 to 6 months 2 210 190 885 387
--------------------------------------------- ------------- -------------
6 months to 1 year 5 353 818 2 875 529
--------------------------------------------- ------------- -------------
1 to 5 years 20 686 436 18 161 873
--------------------------------------------- ------------- -------------
Over 5 years - -
--------------------------------------------- ------------- -------------
---------- ----------
--------------------------------------------- ------------- -------------
Total advances 127 870 654 119 596 646
--------------------------------------------- ------------- -------------
Less:Financial assets at fair value through
profit and loss
--------------------------------------------- ------------- -------------
-Bankers Acceptances (21 107 902) (22 401 174)
--------------------------------------------- ------------- -------------
-Promisory Notes (1 241 918) (57 424)
--------------------------------------------- ------------- -------------
Provision for impairment losses on loans
and advances (4 042 108) (3 354 088)
--------------------------------------------- ------------- -------------
Suspended interest (1 115 540) (1 048 007)
--------------------------------------------- ------------- -------------
---------- ----------
--------------------------------------------- ------------- -------------
100 363 186 92 735 953
--------------------------------------------- ------------- -------------
Statutory reserves - 3 231 838
--------------------------------------------- ------------- -------------
Other accounts 5 302 077 3 834 274
--------------------------------------------- ------------- -------------
---------- ---------
--------------------------------------------- ------------- -------------
105 665 263 99 802 065
--------------------------------------------- ------------- -------------
========== =========
--------------------------------------------- ------------- -------------
14.2 Sectoral analysis of utilisations
30 June 31 December
------------------------------ ------------ ------- -------------- ----
2012 2011
------------------------------ ------------ ------- -------------- ----
US$ % US$ %
------------------------------ ------------ ------- -------------- ----
Agriculture and horticulture 11 712 956 9 9 121 606 8
------------------------------ ------------ ------- -------------- ----
Conglomerates 4 402 340 3 4 700 752 4
------------------------------ ------------ ------- -------------- ----
Services 20 264 147 16 17 076 201 14
------------------------------ ------------ ------- -------------- ----
Mining 1 433 678 1 3 856 637 3
------------------------------ ------------ ------- -------------- ----
Food & beverages 5 761 317 5 5 747 287 5
------------------------------ ------------ ------- -------------- ----
Individuals 21 158 020 17 18 403 441 15
------------------------------ ------------ ------- -------------- ----
Manufacturing 25 664 138 20 26 977 166 23
------------------------------ ------------ ------- -------------- ----
Distribution 37 474 058 29 33 713 556 28
------------------------------ ------------ ------- -------------- ----
---------- ------ --------- ---
------------------------------ ------------ ------- -------------- ----
127 870 654 100 119 596 646 100
------------------------------ ------------ ------- -------------- ----
========= === ========= ===
------------------------------ ------------ ------- -------------- ----
The material concentration of loans and advances are in the
distribution sector at 29% (2011:28%).
14.3 Allowance for impairment losses on loans and advances
30 31 December
June 2011
2012
---------------- ---------- ---------- ---------- --------- ------------ ------------
Specific Portfolio Total Specific Portfolio Total
---------------- ---------- ---------- ---------- --------- ------------ ------------
US$ US$ US$ US$ US$ US$
---------------- ---------- ---------- ---------- --------- ------------ ------------
1 057
At 1 January 3 354 088 - 3 354 088 977 - 1 057 977
---------------- ---------- ---------- ---------- --------- ------------ ------------
Charge against 2 296
profits 688 020 - 688 020 111 - 2 296 111
---------------- ---------- ---------- ---------- --------- ------------ ------------
Bad debts
written - - - - - -
Off
---------------- ---------- ---------- ---------- --------- ------------ ------------
-------- -------- -------- ------- ----- --------
---------------- ---------- ---------- ---------- --------- ------------ ------------
3 354
Balance 4 042 108 - 4 042 108 088 - 3 354 088
---------------- ---------- ---------- ---------- --------- ------------ ------------
======== ======== ======== ======= ====== ========
---------------- ---------- ---------- ---------- --------- ------------ ------------
14.4 Non-performing loans and advances
30 June 31 December
----------------------------------------- ------------ -------------
2012 2011
----------------------------------------- ------------ -------------
US$ US$
----------------------------------------- ------------ -------------
Total non-performing loans and advances 15 309 075 8 983 037
----------------------------------------- ------------ -------------
Provision for impairment loss on
loans and advances (4 042 108) (3 3 54 088)
----------------------------------------- ------------ -------------
Suspended interest (1 115 540) (1 048 007)
----------------------------------------- ------------ -------------
---------- ----------
----------------------------------------- ------------ -------------
Residue 10 151 427 4 580 942
----------------------------------------- ------------ -------------
========== ==========
----------------------------------------- ------------ -------------
The residue on these accounts represents recoverable portions
covered by realisable security.
15. PROPERTY AND EQUIPMENT
Land and Computer Furniture Motor vehicles Total
buildings equipment and fittings
---------------------- --------------- ---------------- ---------------- --------------- --------------
US$ US$ US$ US$ US$
---------------------- --------------- ---------------- ---------------- --------------- --------------
COST
---------------------- --------------- ---------------- ---------------- --------------- --------------
Balance at 1 January 4 742
2011 2 415 000 717 599 1 389 505 220 119 223
---------------------- --------------- ---------------- ---------------- --------------- --------------
3 568
Additions 8 252 818 939 1 176 536 1 564 286 013
---------------------- --------------- ---------------- ---------------- --------------- --------------
Net transfer from
Investment property 65 000 - - - 65 000
---------------------- --------------- ---------------- ---------------- --------------- --------------
Revaluation gain 250 000 - - - 250 000
---------------------- --------------- ---------------- ---------------- --------------- --------------
Disposals - (27 930) (71 677) (17 890) (117 497)
---------------------- --------------- ---------------- ---------------- --------------- --------------
Reclassifications - 15 663 (15 663) - -
---------------------- --------------- ---------------- ---------------- --------------- --------------
------------- ----------- ------------- ----------- -------------
---------------------- --------------- ---------------- ---------------- --------------- --------------
Balances at 31
December 8 507
2011 2 738 252 1 524 271 2 478 701 1 766 515 739
---------------------- --------------- ---------------- ---------------- --------------- --------------
1 228
Additions - 267 965 197 977 762 504 446
---------------------- --------------- ---------------- ---------------- --------------- --------------
Reclassifications - 251 703 (251 703) - -
---------------------- --------------- ---------------- ---------------- --------------- --------------
Revaluation gain 70 000 - - - 70 000
---------------------- --------------- ---------------- ---------------- --------------- --------------
Disposals - - (10 825) (250) (11 075)
---------------------- --------------- ---------------- ---------------- --------------- --------------
------------- ------------- ------------- ------------ -----------
---------------------- --------------- ---------------- ---------------- --------------- --------------
Balance at 30 9 795
June 2012 2 808 252 2 043 939 2 414 150 2 528 769 110
---------------------- --------------- ---------------- ---------------- --------------- --------------
------------- ------------- ------------- ------------ -----------
---------------------- --------------- ---------------- ---------------- --------------- --------------
DEPRECIATION
---------------------- --------------- ---------------- ---------------- --------------- --------------
Balance at 1 January 1 044
2011 69 317 306 649 931 77 024 330
---------------------- --------------- ---------------- ---------------- --------------- --------------
Charge for the
year 224 178 694 320 456 256 817 756 191
---------------------- --------------- ---------------- ---------------- --------------- --------------
Disposals - (29 157) (54 967) (10 640) (94 764)
---------------------- --------------- ---------------- ---------------- --------------- --------------
Reclassification - 3 133 (3 133) - -
---------------------- --------------- ---------------- ---------------- --------------- --------------
-------------- -------------- --------------- ------------- ------------
---------------------- --------------- ---------------- ---------------- --------------- --------------
Balance at 31
December 1 705
2011 293 469 976 912 287 323 201 757
---------------------- --------------- ---------------- ---------------- --------------- --------------
Charge for the
period 166 135 439 209 557 289 574 634 736
---------------------- --------------- ---------------- ---------------- --------------- --------------
Disposals - - (2 545) (250) (2 795)
---------------------- --------------- ---------------- ---------------- --------------- --------------
Reclassifications - 70 948 (70 948) - -
---------------------- --------------- ---------------- ---------------- --------------- --------------
-------------- --------------- ------------- ------------ -------------
---------------------- --------------- ---------------- ---------------- --------------- --------------
Balance at 30 2 337
June 2012 459 676 363 1 048 351 612 525 698
---------------------- --------------- ---------------- ---------------- --------------- --------------
-------------- -------------- ------------- ----------- ------------
---------------------- --------------- ---------------- ---------------- --------------- --------------
NET BOOK VALUE
---------------------- --------------- ---------------- ---------------- --------------- --------------
7 457
At 30 June 2012 2 807 793 1 367 576 1 365 799 1 916 244 412
---------------------- --------------- ---------------- ---------------- --------------- --------------
======== ======= ======== ======= ========
---------------------- --------------- ---------------- ---------------- --------------- --------------
At 31 December 6 801
2011 2 737 959 1 054 295 1 566 414 1 443 314 982
---------------------- --------------- ---------------- ---------------- --------------- --------------
======== ======= ======= ======= ========
---------------------- --------------- ---------------- ---------------- --------------- --------------
3 697
At 1 January 2011 2 414 931 400 293 739 574 143 095 893
---------------------- --------------- ---------------- ---------------- --------------- --------------
======== ====== ======= ======= ========
---------------------- --------------- ---------------- ---------------- --------------- --------------
The land and buildings were valued by professional valuers as at
30 June 2012 for half year end purposes and the open market value
was US$2 800 000.
16. CAPITAL COMMITMENTS
30 June 2012 31 December 2012
US$ US$
Capital expenditure contracted for - 45 107
Capital expenditure authorised but not yet contracted for 5 679 622 6 908 068
5 679 622 6 953 175
The capital expenditure will be funded from internal
resources.
17. CONTINGENT LIABILITIES
30 June 31 December
--------------------- ----------- ------------
2012 2011
--------------------- ----------- ------------
US$ US$
--------------------- ----------- ------------
Guarantees 7 712 167 6 374 815
--------------------- ----------- ------------
Commitments to lend 27 287 800 20 385 351
--------------------- ----------- ------------
---------- ----------
--------------------- ----------- ------------
34 999 967 26 760 160
--------------------- ----------- ------------
========= ==========
--------------------- ----------- ------------
18. INVESTMENT IN ASSOCIATE
The Group has a 24.79% interest in African Century Limited,
which is involved in the provision of lease finance.
African Century Limited is a company that is not listed on any
public exchange. The following table illustrates summarized
unaudited and audited financial information of the Group's
investment in African Century Limited.
Share of the associate's statement of financial position:
30 June 2012 31 December 2011
----------------------------------- ------------- -----------------
US$ US$
----------------------------------- ------------- -----------------
Unaudited Audited
----------------------------------- ------------- -----------------
Current assets 3 621 017 2 831 891
----------------------------------- ------------- -----------------
Non-current assets 75 813 68 577
----------------------------------- ------------- -----------------
Current liabilities (210 119) (133 823)
----------------------------------- ------------- -----------------
Non-current liabilities (2 690 717) (2 174 978)
----------------------------------- ------------- -----------------
------------ -----------
----------------------------------- ------------- -----------------
Equity 795 994 591 667
----------------------------------- ------------- -----------------
======= =======
----------------------------------- ------------- -----------------
Share of associate's revenue
and profit:
----------------------------------- ------------- -----------------
Revenue 576 317 571 617
----------------------------------- ------------- -----------------
======= =======
----------------------------------- ------------- -----------------
Profit 204 327 113 573
----------------------------------- ------------- -----------------
======= =======
----------------------------------- ------------- -----------------
Carrying amount of the investment 795 994 591 667
----------------------------------- ------------- -----------------
======= =======
----------------------------------- ------------- -----------------
Reconciliation of carrying
amount of
investment in Associate
----------------------------------- ------------- -----------------
Balance at 1 January 591 667 228 556
----------------------------------- ------------- -----------------
Increase in investment - 249 538
----------------------------------- ------------- -----------------
Share of profit of associate 204 327 113 573
----------------------------------- ------------- -----------------
---------- ----------
----------------------------------- ------------- -----------------
Balance 795 994 591 667
----------------------------------- ------------- -----------------
====== ======
----------------------------------- ------------- -----------------
19. EXCHANGE RATES
The following exchange rates have been used to translate the
foreign currency balances to United States dollars (US$) at period
end:-
Mid-rate Mid-rate
------------------------ ----- ------------- -----------------
30 June 2012 31 December 2011
------------------------ ----- ------------- -----------------
US$ US$
------------------------ ----- ------------- -----------------
British Pound Sterling GBP 1.5631 1.5416
------------------------ ----- ------------- -----------------
South African Rand ZAR 8.3018 8.1852
------------------------ ----- ------------- -----------------
European Euro EUR 1.2596 1.2944
------------------------ ----- ------------- -----------------
Botswana Pula BWP 7.7222 7.5301
------------------------ ----- ------------- -----------------
20. EVENTS AFTER REPORTING DATE
20.1 MID-TERM MONETARY POLICY REVIEW STATEMENT
Subsequent to the half year end, the Reserve Bank of Zimbabwe
Governor announced in his Mid-Term Monetary Policy Review Statement
on 31 July 2012 an increase in minimum capital requirements. The
minimum capital for a commercial bank has been increased from
US$12.5 million to US$25 million by 31 December 2012, US$50 million
by 30 June 2013, US$75 million by 31 December 2013 and US$100
million by 30 June 2014. The minimum capital adequacy ratio was
increased from 10% to 12% effective 1 August 2012.
The board has a medium term business strategic plan which
demonstrates compliance with the new minimum capital requirements
and this will be submitted to the Regulatory Authorities by the due
date of 30 September 2012.
20.2 OFFERS FOR PURCHASE OF INVESTMENT PROPERTY AND SHAREHOLDING
IN ASSOCIATE
Subsequent to the reporting date, the Bank and the Holding
company have received firm offers, which have been accepted by the
companies, for the purchase of half of an investment property owned
by the Bank for a consideration of US$2 150 000 and for the
purchase of the Holding company's shareholding in an associate for
a consideration of US$1 589 209. Consequently, these assets which
were recorded under investment properties and investment in
associate, have been re-classified to available for sale assets in
the proforma statements below. The remainder of the investment
property has been fair valued by the directors at US$2 150 000 on
the basis of the offer received for the other half. The proforma
statements below show the financial effects of these subsequent
events on the results for the half year to 30 June 2012.
PROFORMA CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2012
Actual Proforma
---------------------------- ------------- ------------ ------------ -------------
30 June Proforma Adjustments 30 June
---------------------------- ------------- -------------------------- -------------
2012 Debits Credits 2012
---------------------------- ------------- ------------ ------------ -------------
US$ US$ US$ US$
---------------------------- ------------- ------------ ------------ -------------
Interest income 11 874 017 11 874 017
---------------------------- ------------- ------------ ------------ -------------
Interest expense (4 854 771) (4 854 771)
---------------------------- ------------- ------------ ------------ -------------
---------- ----------
---------------------------- ------------- ------------ ------------ -------------
Net interest income 7 019 246 7 019 246
---------------------------- ------------- ------------ ------------ -------------
Net foreign exchange
gains 905 133 905 133
---------------------------- ------------- ------------ ------------ -------------
Share of profit of
associate 204 327 204 327
---------------------------- ------------- ------------ ------------ -------------
Non-interest income 6 460 875 3 143 215 9 604 090
---------------------------- ------------- ------------ ------------ -------------
--------- ---------
---------------------------- ------------- ------------ ------------ -------------
Net operating income 14 589 581 17 732 796
---------------------------- ------------- ------------ ------------ -------------
Operating expenditure (10 481 773) (98 900) (10 580 673)
---------------------------- ------------- ------------ ------------ -------------
Impairment losses on
loans and advances (688 020) (688 020)
---------------------------- ------------- ------------ ------------ -------------
--------- ----------
---------------------------- ------------- ------------ ------------ -------------
Profit before taxation 3 419 788 6 464 103
---------------------------- ------------- ------------ ------------ -------------
Taxation (855 438) (306 012) (1 161 447)
---------------------------- ------------- ------------ ------------ -------------
--------- ---------
---------------------------- ------------- ------------ ------------ -------------
Profit for the period 2 564 350 5 302 656
---------------------------- ------------- ------------ ------------ -------------
--------- -------- --------- ---------
---------------------------- ------------- ------------ ------------ -------------
Total comprehensive
income for the period 2 564 350 (404 912) 3 143 215 5 302 656
---------------------------- ------------- ------------ ------------ -------------
========= ======== ========= ========
---------------------------- ------------- ------------ ------------ -------------
Attributed to:
---------------------------- ------------- ------------ ------------ -------------
Owners of the parent 2 564 350 (404 912) 3 143 215 5 302 656
---------------------------- ------------- ------------ ------------ -------------
Non - controlling interest - -
---------------------------- ------------- ------------ ------------ -------------
--------- --------- --------- --------
---------------------------- ------------- ------------ ------------ -------------
2 564 350 (404 912) 3 143 215 5 302 656
---------------------------- ------------- ------------ ------------ -------------
========= ========= ========== ========
---------------------------- ------------- ------------ ------------ -------------
Earnings per share
(US cents):
---------------------------- ------------- ------------ ------------ -------------
-Basic 0.09 0.19
---------------------------- ------------- ------------ ------------ -------------
-Diluted basic 0.09 0.19
---------------------------- ------------- ------------ ------------ -------------
PROFORMA STATEMENT OF FINANCIAL POSITION
for the six months ended 30 June 2012
Actual Proforma
------------------------------ -------------- ------------------- ----------------- --------------
30 June Proforma Adjustments 30 June
------------------------------ -------------- -------------------------------------- --------------
2012 Debits Credits 2011
------------------------------ -------------- ------------------- ----------------- --------------
US$ US$ US$ US$
------------------------------ -------------- ------------------- ----------------- --------------
Unaudited Unaudited
------------------------------ -------------- ------------------- ----------------- --------------
EQUITY
------------------------------ -------------- ------------------- ----------------- --------------
Share capital 78 598 78 598
------------------------------ -------------- ------------------- ----------------- --------------
Capital reserves 17 061 357 17 061 357
------------------------------ -------------- ------------------- ----------------- --------------
Retained earnings 8 795 976 2 738 303 11 534 279
------------------------------ -------------- ------------------- ----------------- --------------
---------- ----------
------------------------------ -------------- ------------------- ----------------- --------------
Total Equity 25 935 931 28 674 234
------------------------------ -------------- ------------------- ----------------- --------------
LIABILITIES
------------------------------ -------------- ------------------- ----------------- --------------
Deposits and other
accounts 116 564 605 98 900 116 663 505
------------------------------ -------------- ------------------- ----------------- --------------
Financial liabilities
at fair value through
profit and loss 37 541 912 37 541 912
------------------------------ -------------- ------------------- ----------------- --------------
Current tax liabilities 490 795 247 262 738 057
------------------------------ -------------- ------------------- ----------------- --------------
---------- ----------
------------------------------ -------------- ------------------- ----------------- --------------
Total liabilities 154 597 312 154 943 474
------------------------------ -------------- ------------------- ----------------- --------------
---------- ----------
------------------------------ -------------- ------------------- ----------------- --------------
Total equity and liabilities 180 533 243 183 617 708
------------------------------ -------------- ------------------- ----------------- --------------
========== ==========
------------------------------ -------------- ------------------- ----------------- --------------
ASSETS
------------------------------ -------------- ------------------- ----------------- --------------
Cash and cash equivalents 35 244 836 3 739 209 38 984 045
------------------------------ -------------- ------------------- ----------------- --------------
Financial assets at
fair value through
profit and loss 22 349 820 22 349 820
------------------------------ -------------- ------------------- ----------------- --------------
Investment securities
held to maturity 5 425 534 5 425 534
------------------------------ -------------- ------------------- ----------------- --------------
Loans, advances and
other accounts 105 665 263 105 665 263
------------------------------ -------------- ------------------- ----------------- --------------
Quoted and other investments 305 108 305 108
------------------------------ -------------- ------------------- ----------------- --------------
Deferred tax assets 656 776 58 750 598 026
------------------------------ -------------- ------------------- ----------------- --------------
Investment in associate 795 994 795 994 -
------------------------------ -------------- ------------------- ----------------- --------------
Investment properties 2 632 500 200 000 2 832 500
------------------------------ -------------- ------------------- ----------------- --------------
Property and equipment 7 457 412 7 454 412
------------------------------ -------------- ------------------- ----------------- --------------
----------- ---------- -------- ----------
------------------------------ -------------- ------------------- ----------------- --------------
Total assets 180 533 243 3 939 209 3 939 209 183 617 708
------------------------------ -------------- ------------------- ----------------- --------------
=========== ========== ======== ==========
------------------------------ -------------- ------------------- ----------------- --------------
NMB BANK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2012
30 June 30 June
-------------------------------- --- ------------- ------------
2012 2011
-------------------------------- --- ------------- ------------
US$ US$
-------------------------------- --- ------------- ------------
Interest income 11 757 144 9 301 948
------------------------------------- ------------- ------------
Interest expense (4 855 839) (3 707 229)
------------------------------------- ------------- ------------
---------- ----------
-------------------------------- --- ------------- ------------
Net interest income 6 901 305 5 594 719
------------------------------------- ------------- ------------
Net foreign exchange gains 905 133 503 528
------------------------------------- ------------- ------------
Non-interest income a 6 470 776 6 142 491
-------------------------------- --- ------------- ------------
---------- ---------
-------------------------------- --- ------------- ------------
Net operating income 14 277 214 12 240 738
------------------------------------- ------------- ------------
Operating expenditure b (10 481 773) (8 081 016)
-------------------------------- --- ------------- ------------
Impairment losses on loans
and advances (688 020) (1 346 063)
------------------------------------- ------------- ------------
---------- ---------
-------------------------------- --- ------------- ------------
Profit before taxation 3 107 421 2 813 659
------------------------------------- ------------- ------------
Taxation (787 981) (775 021)
------------------------------------- ------------- ------------
---------- --------
-------------------------------- --- ------------- ------------
Profit for the period 2 319 440 2 038 638
------------------------------------- ------------- ------------
Other comprehensive income, - -
net of tax
-------------------------------- --- ------------- ------------
--------- --------
-------------------------------- --- ------------- ------------
Total comprehensive income
for the
Period 2 319 440 2 038 638
------------------------------------- ------------- ------------
========= =========
-------------------------------- --- ------------- ------------
Earnings per share (US cents):
-------------------------------- --- ------------- ------------
-Basic c 14.06 12.35
-------------------------------- --- ------------- ------------
STATEMENT OF FINANCIAL POSITION
for the six months ended 30 June 2012
------------------------------ ------ ------------------------------------------------- ------------------
30 June 2012 31 December 2011
------------------------------ ------ ------------------------------------------------- ------------------
US$ US$
------------------------------ ------ ------------------------------------------------- ------------------
Unaudited Audited
------------------------------ ------ ------------------------------------------------- ------------------
EQUITY Note
------------------------------ ------ ------------------------------------------------- ------------------
Share capital d 16 501 16 501
------------------------------ ------ ------------------------------------------------- ------------------
Capital reserves 14 969 069 14 714 362
-------------------------------------- ------------------------------------------------- ------------------
Retained earnings 8 181 130 6 116 397
-------------------------------------- ------------------------------------------------- ------------------
---------- ---------
------------------------------ ------ ------------------------------------------------- ------------------
Total Equity 23 166 700 20 847 260
-------------------------------------- ------------------------------------------------- ------------------
LIABILITIES
------------------------------ ------ ------------------------------------------------- ------------------
Deposits and other accounts 116 793 837 102 720 193
-------------------------------------- ------------------------------------------------- ------------------
Financial liabilities at
fair value
through profit and loss 37 541 912 40 148 860
-------------------------------------- ------------------------------------------------- ------------------
Current tax liabilities 330 628 1 073 698
-------------------------------------- ------------------------------------------------- ------------------
---------- ----------
------------------------------ ------ ------------------------------------------------- ------------------
Total liabilities 154 666 377 143 942 751
-------------------------------------- ------------------------------------------------- ------------------
---------- ----------
------------------------------ ------ ------------------------------------------------- ------------------
Total equity and liabilities 177 833 077 164 790 011
-------------------------------------- ------------------------------------------------- ------------------
========== ==========
------------------------------ ------ ------------------------------------------------- ------------------
ASSETS
------------------------------ ------ ------------------------------------------------- ------------------
Cash and cash equivalents e 35 244 836 32 265 953
------------------------------ ------ ------------------------------------------------- ------------------
Financial assets at fair
value through
profit and loss 22 349 820 24 585 255
-------------------------------------- ------------------------------------------------- ------------------
Investment securities held 5 425 534 -
to maturity
------------------------------ ------ ------------------------------------------------- ------------------
Loans, advances and other
accounts 103 982 515 98 115 726
-------------------------------------- ------------------------------------------------- ------------------
Unquoted investments 83 684 81 278
-------------------------------------- ------------------------------------------------- ------------------
Deferred tax assets 656 776 429 817
-------------------------------------- ------------------------------------------------- ------------------
Investment properties f 2 632 500 2 510 000
------------------------------ ------ ------------------------------------------------- ------------------
Property and equipment 7 457 412 6 801 982
-------------------------------------- ------------------------------------------------- ------------------
----------- ---------
------------------------------ ------ ------------------------------------------------- ------------------
Total assets 177 833 077 164 790 011
-------------------------------------- ------------------------------------------------- ------------------
=========== =========
------------------------------------- ------------------------------------------------- ------------------
STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2012
Captal Reserves
Share capital Share Premium Regulatory Reserve Retained Income Total
Balances as at
31 December
2010 16 501 13 690 931 883 414 1 976 437 16 567 283
Total
comprehensive
income for
the six
months - - (20 453) 2 038 638 2 038 638
Balances as at
30 June 2011 16 501 13 690 931 862 961 4 035 528 18 605 921
Total
comprehensive
income for
the six monts - - - 2 241 339 2 241 339
Impairment
allowances
for loans and
advances - - 160 470 (160 470) -
Balances as at
31 December
2011 16 501 13 690 931 1 023 431 6 116 397 20 847 260
Total
comprehensive
income for
the six
months - - - 2 319 440 2 319 440
Impairment
allowance for
loans and
advances - - 254 707 (254 707) -
Balances as at
30 June 2012 16 501 13 690 931 1 278 138 8 181 130 23 166 700
STATEMENT OF CASH FLOWS
for the six months ended 30 June 2012
CASH FLOWS FROM OPERATING ACTIVITIES 30 June 30 June
------------------------------------------------ ------------ -------------
2012 2011
------------------------------------------------ ------------ -------------
US$ US$
------------------------------------------------ ------------ -------------
Profit before taxation 3 107 421 2 813 659
------------------------------------------------ ------------ -------------
Non-cash items
------------------------------------------------ ------------ -------------
-Impairment losses on loans and advances 688 020 1 346 063
------------------------------------------------ ------------ -------------
-Investment properties fair value adjustment (122 500) 152 500
------------------------------------------------ ------------ -------------
-Profit on disposal of property and equipment (725) -
------------------------------------------------ ------------ -------------
-Quoted and other investments fair value (2 406) -
adjustment
------------------------------------------------ ------------ -------------
-Impairment loss on land and buildings (70 000) (200 000)
------------------------------------------------ ------------ -------------
-Depreciation 634 736 256 006
------------------------------------------------ ------------ -------------
--------- ---------
------------------------------------------------ ------------ -------------
Operating cash flows before changes in
operating assets and liabilities 4 234 546 4 368 228
------------------------------------------------ ------------ -------------
Changes in operating assets and liabilities
------------------------------------------------ ------------ -------------
Financial liabilities at fair value through
profit and loss (2 606 948) 13 863 313
------------------------------------------------ ------------ -------------
Deposits and other accounts 14 073 644 9 728 655
------------------------------------------------ ------------ -------------
Loans, advances and other accounts (6 554 807) (15 695 904)
------------------------------------------------ ------------ -------------
Financial assets at fair value through
profit and loss 2 235 435 (7 591 087)
------------------------------------------------ ------------ -------------
Investment securities held to maturity (5 425 534) -
------------------------------------------------ ------------ -------------
--------- ---------
------------------------------------------------ ------------ -------------
5 956 336 4 673 205
------------------------------------------------ ------------ -------------
--------- ---------
------------------------------------------------ ------------ -------------
Taxation
------------------------------------------------ ------------ -------------
Corporate tax paid (1 758 010) (940 074)
------------------------------------------------ ------------ -------------
--------- ---------
------------------------------------------------ ------------ -------------
Net cash inflow from operating activities 4 198 326 3 733 131
------------------------------------------------ ------------ -------------
--------- ---------
------------------------------------------------ ------------ -------------
CASH FLOWS FROM INVESTING ACTIVITIES
------------------------------------------------ ------------ -------------
Proceeds on disposal of property and equipment 9 003 -
------------------------------------------------ ------------ -------------
Purchase of property and equipment (1 228 446) (1 421 247)
------------------------------------------------ ------------ -------------
----------- ---------
------------------------------------------------ ------------ -------------
Net cash outflow from investing activities (1 219 443) (1 421 247)
------------------------------------------------ ------------ -------------
---------- ---------
------------------------------------------------ ------------ -------------
Net cash inflow before financing activities 2 978 883 2 311 884
------------------------------------------------ ------------ -------------
---------- ---------
------------------------------------------------ ------------ -------------
CASH FLOWS FROM FINANCING ACTIVITIES
------------------------------------------------ ------------ -------------
Decrease in amount from Holding Company - (1 216 207)
------------------------------------------------ ------------ -------------
---------- ----------
------------------------------------------------ ------------ -------------
Net cash outflow from financing activities - (1 216 207)
------------------------------------------------ ------------ -------------
---------- ----------
------------------------------------------------ ------------ -------------
Net increase in cash and cash equivalents 2 978 883 1 095 677
------------------------------------------------ ------------ -------------
Cash and cash equivalents at the beginning
of the period 32 265 953 18 346 939
------------------------------------------------ ------------ -------------
---------- ----------
------------------------------------------------ ------------ -------------
Cash and cash equivalents at the end of
the period (note e) 35 244 836 19 442 616
------------------------------------------------ ------------ -------------
========== ==========
------------------------------------------------ ------------ -------------
NOTES TO THE ABRIDGED FINANCIAL STATEMENTS
There are no material differences between the Bank and the
Holding company as the Bank is the principal operating subsidiary
of the Group. The notes to the abridged financial statements under
NMBZ Holdings Limited are therefore the same as those of the Bank
in every material respect.
a. NON-INTEREST income
30 June 30 June
---------------------------------------------- ---------- ----------
2012 2011
---------------------------------------------- ---------- ----------
US$ US$
---------------------------------------------- ---------- ----------
Investment property fair value adjustment 122 500 (152 500)
---------------------------------------------- ---------- ----------
Commission and fee income 6 556 955 6 247 071
---------------------------------------------- ---------- ----------
Profit on disposal of property and equipment 725 -
---------------------------------------------- ---------- ----------
Fair value (loss)/gains on trading financial
instruments (215 743) 48 795
---------------------------------------------- ---------- ----------
Fair value loss on financial instruments (8 622) (5 886)
---------------------------------------------- ---------- ----------
Other net operating income 14 961 5 011
---------------------------------------------- ---------- ----------
-------- --------
---------------------------------------------- ---------- ----------
6 470 776 6 142 491
---------------------------------------------- ---------- ----------
======== ========
---------------------------------------------- ---------- ----------
b. Operating EXPENDITURE
30 June 30 June
---------------------------------------- ----------- ----------
2012 2011
---------------------------------------- ----------- ----------
US$ US$
---------------------------------------- ----------- ----------
The operating profit is after charging
the following:-
---------------------------------------- ----------- ----------
Administration costs 5 076 333 4 116 047
---------------------------------------- ----------- ----------
Staff costs - salaries, allowances and
related costs 4 840 704 3 908 963
---------------------------------------- ----------- ----------
Depreciation 634 736 256 006
---------------------------------------- ----------- ----------
Impairment reversal on land, buildings
and other property (70 000) (200 000)
---------------------------------------- ----------- ----------
---------- ---------
---------------------------------------- ----------- ----------
Total 10 481 773 8 081 016
---------------------------------------- ----------- ----------
========= ========
---------------------------------------- ----------- ----------
c. EARNINGS PER SHARE
The calculation of earnings per share is based on the following
figures:
c.1 Earnings
30 June 30 June
------- ---------- ----------
2012 2011
------- ---------- ----------
US$ US$
------- ---------- ----------
Basic 2 319 440 2 038 638
------- ---------- ----------
c.2 Number of shares
Weighted average shares in issue 16 501 000 16 501 000
---------------------------------- ----------- -----------
c.3 Earnings per share (US cents)
Basic 14.06 12.35
------- ------ ------
d. SHARE CAPITAL
d.1 Authorised
The authorised ordinary share capital at 30 June 2012 is at the
historical cost figure of US$25 000 (2011 - US$25 000) comprising
25 million ordinary shares of US$0.001 each.
d.2 Issued and fully paid
The issued share capital at 30 June 2012 is at the historical
cost figure of US$16 501 (2011 - US$16 501) comprising 16.501
million ordinary shares of US$0.001 each
e. CASH AND CASH EQUIVALENTS
----------------------------------- ---------------- -----------------
30 June 2012 31 December 2011
----------------------------------- ---------------- -----------------
US$ US$
----------------------------------- ---------------- -----------------
Balances with the Central Bank 15 073 033 12 255 166
----------------------------------- ---------------- -----------------
Current, nostro accounts and cash 20 171 803 20 010 787
----------------------------------- ---------------- -----------------
---------- ---------
----------------------------------- ---------------- -----------------
35 244 836 32 265 953
----------------------------------- ---------------- -----------------
========= =========
----------------------------------- ---------------- -----------------
f. INVESTMENT PROPERTIES
----------------------------------------- ---------------- -----------------
30 June 2012 31 December 2011
----------------------------------------- ---------------- -----------------
US$ US$
----------------------------------------- ---------------- -----------------
Deemed amount at 1 January 2 510 000 2 615 000
----------------------------------------- ---------------- -----------------
Transfers out to property and equipment - (65 000)
----------------------------------------- ---------------- -----------------
Fair value adjustments 122 500 (40 000)
----------------------------------------- ---------------- -----------------
------------ ------------
----------------------------------------- ---------------- -----------------
2 632 500 2 510 000
----------------------------------------- ---------------- -----------------
======== =======
----------------------------------------- ---------------- -----------------
Rental income amounting to US$6 600 (2011 - US$6 600) was
received and no operating expenses were incurred on the investment
properties in the current period.
The Bank has no restrictions on the realisability of all
investment properties and no contractual obligations to either
purchase, construct or develop the investment properties or for
repairs, maintenance and enhancements.
Investment properties are stated at fair value, which has been
determined based on valuations performed by professional valuers as
at 30 June 2012. The professional valuers considered comparable
market evidence of recent sale transactions and those transactions
where firm offers had been made but awaiting acceptance.
h. CORPORATE GOVERNANCE AND RISK MANAGEMENT
1. RESPONSIBILITY
These abridged financial statements are the responsibility of
the directors. This responsibility includes the setting up of
internal control and risk management processes, which are monitored
independently. The information contained in these abridged
financial statements has been prepared on the going concern basis
and is in accordance with the provisions of the Companies Act
(Chapter 24:03), the Banking Act (Chapter 24:20) and International
Financial Reporting Standards.
2. CORPORATE GOVERNANCE
The Group adheres to principles of corporate governance derived
from the King II Report, the United Kingdom Combined Code and RBZ
corporate governance guidelines. The Group is cognisant of its duty
to conduct business with due care and in good faith in order to
safeguard all stakeholders' interests.
3. BOARD OF DIRECTORS
Board appointments are made to ensure a variety of skills and
expertise on the Board. Non-executive directors are of such calibre
as to provide independence to the Board. The Chairman of the Board
is an independent non-executive director. The Board is supported by
mandatory committees in executing its responsibilities. The Board
meets at least quarterly to assess risk, review performance and
provide guidance to management on both operational and policy
issues.
The Board conducts an annual peer based evaluation on the
effectiveness of its activities. The process involves the members
evaluating each other collectively as a board and individually as
members. The evaluation, as prescribed by the RBZ, takes into
account the structure of the board, effectiveness of committees,
strategic leadership, corporate social responsibility, attendance
and participation of members and weaknesses noted. Remedial plans
are invoked to address identified weaknesses with a view to
continually improve the performance and effectiveness of the Board
and its members.
3.1 Directors' attendance at NMB Bank Limited Board meetings
Human
Asset and Resources,
Liability Remuneration
Management and
Board of Audit Risk Committee Loan Review Nominations Credit
Directors Committee Management (ALCO) Committee Committee Committee
P A P A P A Finance P A P A P A
& Strategy
Committee
P A
----------------- ------------- ------------- -------------- -------------- ------------- --------------- -------------
T N Mundawarara 2 2 2 2 2 2 2 1
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
A M T Mutsonziwa 2 1 2 2 2 2 2 1
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
J A Mushore 2 2 2 2 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
F Zimuto 2 2 2 2 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
B Ndachena 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
B W Madzivire 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
M Mudukuti* 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
L Majonga (Ms) 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
J Chigwedere 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
J de la Fargue** 2 2 2 1 2 1 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
J Chenevix-
Trench*** 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
B P Washaya 2 2 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
F S Mangozho 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
L
Chinyamutangira 2 2 2 2 2 2
----------------- ---- ------- --------- --- --------- ---- -------- ---- ------- ---- --------- ---- -------
KEY
P=Meetings planned
-------------------
A=Meetings attended
--------------------
*Mr M Mudukuti resigned from the Board with effect from 22 May
2012.
**Mr J de la Fargue resigned from the Board Audit Committee with
effect from 13 March 2012.
***Mr J de la Fargue is an alternate director to Mr J Chenevix -
Trench in the ALCO, Finance and Strategy Committee.
4. RISK MANAGEMENT
The Board of Directors has overall responsibility for the
establishment and oversight of the Group's risk management
framework. The Board has established the Board Asset and Liability
Management Committee (ALCO) and Board Risk Committee, which are
responsible for defining the Bank's risk universe, developing
policies and monitoring implementation. The Bank has a Risk
Management department, which reports to the Managing Director and
is responsible for the management of the bank's overall risk
universe. The Bank is working towards full implementation of Basel
II requirements as set by the Reserve Bank of Zimbabwe.
Risk management is linked logically from the level of individual
transactions to the Bank level. Risk management activities broadly
take place simultaneously at the following different hierarchy
levels:
a) Strategic Level: This involves risk management functions
performed by senior management and the board of directors. It
includes the definition of risk, ascertaining the Bank's risk
appetite, formulating strategy and policy for managing risk and
establishes adequate systems and controls to ensure overall risk
remains within acceptable levels and is adequately compensated.
b) Macro Level: It encompasses risk management within a business
area or across business lines. These risk management functions are
performed by middle management.
c) Micro Level: This involves "On-the-line" risk management
where risks are actually created. These are the risk management
activities performed by individuals who assume risk on behalf of
the organization such as Treasury Front Office, Corporate Banking,
Retail banking e.t.c. The risk management in these areas is
confined to operational procedures set by management.
Risk management is premised on four (4) mutually reinforcing
pillars, namely:
a) adequate board and senior management oversight;
b) adequate strategy, policies, procedures and limits;
c) adequate risk identification, measurement, monitoring and information systems; and
d) comprehensive internal controls and independent reviews.
4.1 Credit risk
Credit risk is the risk that a financial contract will not be
honoured according to the original set of terms. The risk arises
when borrowers or counterparties to a financial instrument fail to
meet their contractual obligations. The Board has put in place
sanctioning committees with specific credit approval limits. The
Credit Risk Management department does the initial review of all
applications before passing them on to the Executive Credit
Committee and finally Board Credit Committee depending on the loan
amount. The bank has in place a Board Loans Review Committee
responsible for reviewing the quality of the loan book.
The Credit Risk Management department is responsible for
implementing the group's credit risk policies and standards and
this includes:
-- Formulating credit policies in consultation with business
units, covering collateral requirements, credit assessment, risk
grading and reporting, documentary and legal procedures, and
compliance with regulatory and statutory requirements ;
-- Establishing the authorization structure for the approval and
renewal of credit facilities. Facilities require authorization by
the Risk Management Committee, Executive Committee or the Board
Credit Committee depending on amount as per set limits;
-- The Credit Risk Management department assesses all credit
exposures in excess of designated limits, prior to facilities being
committed to clients by the business unit concerned. Renewals and
reviews of facilities are subject to the same review process;
-- Limiting concentrations of exposure to counter parties and industry for loans and advances;
-- Maintaining and monitoring the risk grading as per the RBZ
requirement in order to categorize exposures according to the
degree of risk of financial loss faced and to focus management on
the attendant risks.
-- Reviewing compliance of business units with agreed exposure
limits, including those for selected industries; an
-- Providing advice, guidance and specialist skills to business
units to promote best practice throughout the Group in the
management of credit risk.
4.2 Market risk
This is the exposure of the Bank's on and off balance sheet
positions to adverse movement in market prices resulting in a loss
in earnings and capital. The market prices will range from money
market (interest rate risk), foreign exchange and equity markets in
which the bank operates. The Bank has in place a Management Asset
and Liability Committee (ALCO) which monitors market risk and
recommends the appropriate levels to which the bank should be
exposed at any time. Net Interest Margin is the primary measure of
interest rate risk, supported by periodic stress tests to assess
the bank's ability to withstand stressed market conditions. On
foreign exchange risk, the bank monitors currency mismatches and
makes adjustments depending on exchange rate movement forecast. The
mismatches are also contained within 10% of the Bank's capital
position.ALCO meets on a monthly basis and operates within the
prudential guidelines and policies established by the Board ALCO.
The board ALCO is responsible for setting exposure thresholds and
limits, and meets on a quarterly basis.
4.3 Liquidity risk
Liquidity risk is the risk of financial loss arising from the
inability of the Bank to fund asset increases or meet obligations
as they fall due without incurring unacceptable costs or losses.
The bank identifies this risk through maturity profiling of assets
and liabilities and assessment of expected cashflows and the
availability of collateral which could be used if additional
funding is required.
The daily liquidity position is monitored and regular liquidity
stress testing is conducted under a variety of scenarios covering
both normal and more severe market conditions. All liquidity
policies and procedures are subject to review and approval by the
Board ALCO.
The key measure used by the bank for managing liquidity risk is
the ratio of net liquid assets to deposits to customers. The bank
also actively monitors its loans to deposit ratio against a set
threshold in a bid to monitor and limit funding risk. Liquidity
risk is monitored through a daily treasury strategy meeting. This
is augmented by a monthly management ALCO and a quarterly board
ALCO.
The key measure used by the Bank for managing liquidity risk is
the ratio of net liquid assets to deposits from customers. The Bank
monitors its liquidity ratio in compliance with Banking Regulations
to ensure that it is not less than 30% of the liabilities to the
public. Liquid assets consist of cash and cash equivalents, short
term bank deposits and liquid investment securities available for
immediate sale.
4.4 Operational risk
This risk is inherent in all business activities and is the risk
of loss arising from inadequate or failed internal processes,
people, systems or from external events. The Bank utilises monthly
Key Risk Indicators to monitor operational risk in all units.
Further to this, the Bank has an elaborate Operational Loss
reporting system in which all incidents with a material impact on
the well-being of the Bank are reported to risk management. The
risk department conducts periodic risk assessments on all the units
within the Bank aimed at identifying the top risks and ways to
minimise their impact. There is a Board Risk Committee whose
function is to ensure that this risk is minimized. The Risk
Committee with the assistance of the internal audit function and
the Risk Management department assesses the adequacy of the
internal controls and makes the necessary recommendations to the
Board.
4.5 Legal and compliance risk
Legal risk is risk from uncertainty due to legal actions or
uncertainty in the applicability or interpretation of contracts,
laws or regulations. Legal risk may entail such issues as contract
formation, capacity and contract frustration. Compliance risk is
the risk arising from non - compliance with laws and
regulations.
To manage this risk the Bank employs a legal practitioner who is
responsible for the drafting, monitoring and executing all
contracts. Permanent relationships are also maintained with firms
of legal practitioners and access to legal advice is readily
available to all departments. The compliance function is
responsible for identifying and monitoring legal and compliance
risks and ensuring that the Bank remains in compliance with all
regulatory requirements.
4.6 Compliance Risk
Compliance risk is the risk arising from non compliance with
laws and regulations. To manage this risk permanent relationships
are maintained with firms of legal practitioners and access to
legal advice is really available to all departments. The bank has
an independent compliance function which is responsible for
identifying and monitoring all compliance issues and ensures the
Bank complies with regulatory and statutory requirements.
4.7 Reputational risk
Reputation risk is the risk of loss of business as a result of
negative publicity or negative perceptions by the market with
regards to the way the Bank conducts its business. To manage this
risk, the Bank strictly monitors customers' complaints,
continuously train staff at all levels, conducts market surveys and
periodic reviews of business practices through its internal audit
department.
4.8 Strategic risk
This refers to current and prospective impact on a Bank's
earnings and capital arising from adverse business decisions or
implementing strategies that are not consistent with the internal
and external environment. To manage this risk, the Bank always has
a strategic plan that is adopted by the board of directors.
Further, attainment of strategic objectives by the various
departments is monitored periodically at management level. Further,
there is an ALCO, Finance and Strategy Committee at board level
responsible for monitoring overall progress towards attaining
strategic objectives for the Bank.
The directors are satisfied with the risk management processes
in the Bank as these have contributed to the minimisation of losses
arising from risky exposures.
5. REGULATORY COMPLIANCE
There were no instances of regulatory non - compliance in the
period under review. The Bank remains committed to complying with
and adhering to all regulatory requirements.
6. CAPITAL MANAGEMENT
The primary objective of the Bank's capital management is to
ensure that the Bank complies with the RBZ requirements. In
implementing the current capital requirements, the RBZ requires the
Bank to maintain a prescribed ratio of total capital to total risk
weighted assets.
Regulatory capital consists of Tier 1 capital, which comprises
share capital, share premium, retained earnings (including current
year profit), statutory reserve and other equity reserves.
The other component of regulatory capital is Tier 2 capital,
which includes subordinated term debt, revaluation reserves and
portfolio provisions.
Tier 3 capital relates to an allocation of capital to market and
operational risk.
Various limits are applied to elements of the capital base. The
core capital (Tier 1) shall comprise not less than 50% of the
capital base and portfolio provisions are limited to 1.25% of total
risk weighted assets.
The Bank's regulatory capital position at 30 June 2012 was as
follows:
30 June 31 December
----------------------------------------------- --------------- ----------------------
2012 2011
----------------------------------------------- --------------- ----------------------
US$ US$
----------------------------------------------- --------------- ----------------------
Share capital 16 501 16 501
----------------------------------------------- --------------- ----------------------
Share premium 13 690 931 13 690 931
----------------------------------------------- --------------- ----------------------
Retained earnings 8 181 130 6 116 397
----------------------------------------------- --------------- ----------------------
------------- -------------
----------------------------------------------- --------------- ----------------------
21 888 562 19 823 829
----------------------------------------------- --------------- ----------------------
Less: capital allocated for market and
operational risk (716 431) (571 954)
----------------------------------------------- --------------- ----------------------
Credit to insiders (3 100 826) (892 862)
----------------------------------------------- --------------- ----------------------
-------------- -------------
----------------------------------------------- --------------- ----------------------
Tier 1 capital 18 061 305 18 359 013
----------------------------------------------- --------------- ----------------------
Tier 2 capital (subject to limit as per
Banking
regulations) 1 278 138 1 023 431
----------------------------------------------- --------------- ----------------------
Subordinated debt - -
----------------------------------------------- --------------- ----------------------
Regulatory reserve (limited to 1.25%
of risk
weighted assets) 1 278 138 1 023 431
----------------------------------------------- --------------- ----------------------
Total Tier 1 & 2 capital 19 339 443 19 382 444
----------------------------------------------- --------------- ----------------------
Tier 3 capital (sum of market and operational
risk capital) 716 431 571 954
----------------------------------------------- --------------- ----------------------
-------------- -------------
----------------------------------------------- --------------- ----------------------
Total capital base 20 055 874 19 954 398
----------------------------------------------- --------------- ----------------------
========= ========
----------------------------------------------- --------------- ----------------------
Total risk weighted assets 153 960 463 138 868 906
----------------------------------------------- --------------- ----------------------
========= ========
----------------------------------------------- --------------- ----------------------
Tier 1 ratio 11.73% 13.22%
----------------------------------------------- --------------- ----------------------
Tier 2 ratio 0.83% 0.74%
----------------------------------------------- --------------- ----------------------
Tier 3 ratio 0.47% 0.41%
----------------------------------------------- --------------- ----------------------
Total capital adequacy ratio 13.03% 14.37%
----------------------------------------------- --------------- ----------------------
RBZ minimum required 10.00% 10.00%
----------------------------------------------- --------------- ----------------------
7. SEGMENT INFORMATION
For management purposes, the Bank is organised into four
operating segments based on products and
services as follows:
Retail Banking - Individual customers deposits and consumer
loans, overdrafts, credit card facilities
and funds transfer facilities.
Corporate Banking - Loans and other credit facilities and deposit and current accounts for corporate and institutional customers.
Treasury - Money market investment, securities trading,
accepting and discounting of instruments and foreign currency
trading.
International Banking - Handles the Bank's foreign currency
denominated banking business and manages relationships with
correspondent banks
Management monitors the operating results of its business units
separately for the purpose of making decisions about resource
allocation and performance assessment. Segment performance is
evaluated based on operating profit or loss which in certain
respects is measured differently from operating profit or loss in
the financial statements. Income taxes are managed on a bank - wide
basis and are not allocated to operating segments.
Interest income is reported net as management primarily relies
on net interest revenue as a performance measure, not the gross
income and expense.
Transfer prices between operating segments are on arm's length
basis in a manner similar to transactions with
third parties.
No revenue from transactions with a single external customer or
counterparty amounted to 10% or more of
the Bank's total revenue in 2012 and 2011.
7. SEGMENT INFORMATION
The following tables present income and profit and certain asset
and liability information regarding the bank's operating segments
and service units:
For the year ended 30 June 2012
Retail Corporate International
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
Banking Banking Treasury Banking Unallocated Total
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
US$ US$ US$ US$ US$ US$
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
Income
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
Third party 7 481 083 9 515 248 1 352 964 654 194 129 564 19 133 053
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
Inter - segment - - - - - -
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
-------- --------- --------- -------- --------- ---------
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
Total operating income 7 481 083 9 515 248 1 352 964 654 194 129 564 19 133 053
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
Impairment losses on loans
and advances (87 064) (600 956) - - - (688 020)
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
-------- --------- -------- --------- --------- ---------
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
Net operating income 7 394 019 8 914 292 1 352 964 654 194 129 564 18 445 033
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
-------- --------- -------- -------- -------- ---------
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
Results
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
Interest and similar income 2 319 785 8 989 529 447 830 - - 11 757 144
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
Interest and similar expense (945 547) (3 612 876) (297 416) - - (4 855 839)
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
-------- --------- -------- -------- -------- --------
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
Net interest income 1 374 238 5 376 653 150 414 - - 6 901 305
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
-------- -------- -------- -------- -------- --------
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
Fee and commission income 4 995 567 787 536 - 654 194 119 658 6 556 955
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
Fee and commission expense - - - - - -
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
-------- -------- -------- -------- -------- --------
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
Net fees and commission income 4 995 567 787 536 - 654 194 119 658 6 556 955
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
-------- -------- -------- -------- -------- --------
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
Depreciation of property and
equipment 273 360 45 871 10 611 6 198 298 696 634 736
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
Segment profit/ (loss) 2 117 064 4 031 864 975 342 154 699 (4 171 548) 3 107 421
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
Income tax expense - - - - - (787 981)
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
-------- -------- -------- -------- --------- --------
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
Profit/(loss) for the period 2 117 064 4 031 864 975 342 154 699 (4 171 548) 2 319 440
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
======== ========= ======== ======= ========= ========
------------------------------- ---------- ----------------- ---------- -------------- ------------ ------------
7 . SEGMENT INFORMATION
For the six months ended 30 June 2012
Retail Corporate International
------------------------------- --------- ------------ ----------- -------------- ------------ ------------
Banking Banking Treasury Banking Unallocated Total
------------------------------- --------- ------------ ----------- -------------- ------------ ------------
US$ US$ US$ US$ US$ US$
------------------------------- --------- ------------ ----------- -------------- ------------ ------------
Assets and Liabilities
------------------------------- --------- ------------ ----------- -------------- ------------ ------------
Capital expenditure 313 916 105 930 9 553 40 699 758 348 1 228 446
------------------------------- --------- ------------ ----------- -------------- ------------ ------------
40 466
Total assets 863 111 121 307 14 849 230 40 699 11 354 978 177 833 077
------------------------------- --------- ------------ ----------- -------------- ------------ ------------
51 732
Total liabilities and capital 968 53 963 981 44 872 277 - 27 263 851 177 833 077
------------------------------- --------- ------------ ----------- -------------- ------------ ------------
7. SEGMENT INFORMATION
For the year six months ended 30 June 2011
Retail Corporate International
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
Banking Banking Treasury Banking Unallocated Total
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
US$ US$ US$ US$ US$ US$
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
Income
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
Third party 5 633 400 8 539 391 1 305 348 574 408 (104 580) 15 947 967
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
Inter - segment - - - - - -
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
-------- --------- --------- -------- --------- ---------
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
Total operating income 5 633 400 8 539 391 1 305 348 574 408 (104 580) 15 947 967
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
Impairment losses on loans
and advances (218 726) (1 127 337) - - - (1 346 063)
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
-------- --------- --------- -------- --------- ---------
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
Net operating income 5 414 674 7 412 054 1 305 348 574 408 (104 580) 14 601 904
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
-------- --------- --------- - --------- ---------
--------
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
Results
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
Interest and similar income 1 859 651 6 621 780 820 517 - - 9 301 948
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
Interest and similar expense (851 887) (2 855 342) - - - (3 707 229)
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
-------- --------- -------- -------- ----------- --------
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
Net interest income 1 007 764 3 766 438 820 517 - - 5 594 719
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
-------- --------- -------- -------- -------- --------
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
Fee and commission income 3 773 749 1 917 610 (18 696) 574 408 - 6 247 071
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
Fee and commission expense - - - - - -
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
-------- -------- -------- -------- --------- --------
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
Net fees and commission income 3 773 749 1 917 610 (18 696) 574 408 - 6 247 071
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
-------- --------- ------------ -------- --------- --------
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
Depreciation of property and
equipment 125 875 15 038 6 323 5 363 103 407 256 006
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
Segment profit/ (loss) 1 666 371 2 955 815 1 296 736 185 154 (3 290 417) 2 813 659
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
Income tax expense - - - - - (775 021)
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
-------- --------- -------- -------- -------- --------
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
Profit/(loss) for the period 1 666 371 2 955 815 1 296 736 185 154 (3 290 417) 2 038 638
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
======== ======== ======== ======== ========== ========
-------------------------------- ---------- ------------ ------------- -------------- ------------ ------------
7. SEGMENT INFORMATION
For the six months ended 30 June 2011
Retail Corporate International
------------------------------- --------- ----------- ----------- -------------- ------------ ------------
Banking Banking Treasury Banking Unallocated Total
------------------------------- --------- ----------- ----------- -------------- ------------ ------------
US$ US$ US$ US$ US$ US$
------------------------------- --------- ----------- ----------- -------------- ------------ ------------
Assets and Liabilities
------------------------------- --------- ----------- ----------- -------------- ------------ ------------
Capital expenditure 490 499 117 457 36 443 49 833 727 015 1 421 247
------------------------------- --------- ----------- ----------- -------------- ------------ ------------
27 980
Total assets 690 76 143 749 11 137 792 142 714 11 414 406 126 819 351
------------------------------- --------- ----------- ----------- -------------- ------------ ------------
16 328
Total liabilities and capital 836 42 772 517 43 424 584 - 24 293 414 126 819 351
------------------------------- --------- ----------- ----------- -------------- ------------ ------------
8. GEOGRAPHICAL INFORMATION
The Group operates in one geographical market, Zimbabwe.
Registered Offices
1(st) Floor NMB Centre
Unity Court George Silundika Avenue/
Cnr 1(st) Street/Kwame Nkrumah Avenue Leopold Takawira Street
Harare Bulawayo
Zimbabwe Zimbabwe
Telephone +263 4 759651 +263 9 70169
Facsimile +263 4 759648 +263 9 68535
Website: http://www.nmbz.co.zw
Email: enquiries@nmbz.co.zw
Transfer Secretaries
In Zimbabwe In UK
First Transfer Secretaries Computershare Services PLC
1 Armagh Avenue 36 St Andrew Square
(Off Enterprise Road) Edinburgh
Eastlea EH2 2YB
P O Box 11 UK
Harare
Zimbabwe
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFFDTDIIVIF
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