Tough time for NDH

Ngoni Chanakira

LEADING financial and investment institution NDH Holdings Ltd (NDH) says it made a monetary loss of $4,9 billion for the year ended December 31 2002.



ana, Arial, Helvetica, sans-serif”>The group has blamed Zimbabwe’s hyperinflationary environment for the jolt, coming at a time when other financial institutions are making billion-dollar profits.


NDH said based on current cost, the group posted a loss before taxation of $3,133 billion.


Led by Ernest Matienga NDH comprises National Discount House Ltd, NDH Equities (Pvt) Ltd, NDH Asset Managers Zimbabwe (Pvt) Ltd and Ludham Investments (Pvt) Ltd


The company said profit before taxation of $861,9 million was a reduction from last year’s figure.


In its annual report for the year ended December 31 2002, NDH said however, this performance was expected given that the windfall gains made in 2001 were unlikely to occur.


The institution said the adjustment in respect of the International Accounting Standards (IAS) 29 resulted in it reporting a loss before taxation of $506,4 million.


The total tax charge was $374,5 million and tax relief occasioned by capital expenditure incurred was not adequate to ameliorate the tax burden.

Group managing director Matienga said the tax charge also included deferred tax on interest and restatement of financial instruments.


He said the business unit performed well during the year under review.

Profit before taxation was $1 050 million, up from the $852,4 million achieved during the same period previously.


Net interest income outturn stood at $799 million.


“This was below last year’s performance of $930 million due to the low interest rate regime evident for the greater part of the year,” Matienga said. “Concerns regarding the expectation of interest rate movements influenced the group’s positioning.”


He said the business unit recorded net trading income of $1 029,9 million for the year compared to $718,6 million in the previous year, which he described as “a pleasing out-turn”.


NDH chairperson Elizabeth Chitiga said although the economy had proved resilient in the past, various issues needed to be solved in order for to grow.

“Foreign exchange remains the single most important factor hobbling the performance of the economy,” Chitiga said. “As a result of the scarcity of foreign exchange, operational costs have soared to unprecedented levels thereby squeezing margins. Cost-push pressures will continue to plague the economy in the foreseeable future.”


She said tourism had slipped from being the major foreign currency earner as tourist arrivals had shrunk drastically.