NMB Bank lost US$92 887 due to impairment loses on loans and advances last year, the group’s chairman Gibson Mandishona said.
The group had issued loans and advances amounting to US$12 509 344 as at December 31 2009, about 2,7% of the total money lent by banks during the same period.
“While a conservative approach has been taken with respect to impairment losses on loans and advances, the charge amounted to US$92 887,” said Mandishona announcing the bank’s financial results for the year ending December 31 2009.
Mandishona said the amount lost was reflective of the loans and advances which amounted to US$12,5 million during the same period as well as a prudent lending policy in a fairly uncertain environment.
There was no official confirmation whether the bank had met its minimum capital requirements after the financial institution last week said “it had undertaken a recapitalisation initiative in order to meet the statutory minimum paid up capital of US$12,5 million” required by yesterday.
On Tuesday, insiders however said the bank had met its capital requirements.
The group’s total asset base was US$39,4 million and mainly comprised financial assets at fair value through profit and loss which amounted to US$7 135 023, cash and short term funds at US$12 2003 181, investment properties US$3 219 600; property and equipment US$3 582 387 and advances and other accounts US$12 729 195.
“The profit before taxation was US$941 182 during the period under review. A historical cost attributable profit of US$2,27 million was recorded for the year,” said Mandishona.
Net interest income was US$803 096, while non-interest income amounted to US$7,2 million, which was mainly as a result of fair value adjustments on investment properties, commissions and fee income and the debt write back as Reserve Bank foreign currency bond.
“Operating expenses amounted to US$7 385 212 largely driven by administration, staff related expenditure and the impairment loss on land and buildings,” said Mandishona.
Last week, African Banking Corporation (ABC) sold its 7,72% stake in NMB Bank.
A foreign entity believed to be a British Virgin Islands registered company snapped up ABC’s stake in a deal valued at US$1,3 million.
Second Nominees, a company camouflaging ABC’s shareholding in NMB, two weeks ago sold 126 million shares.