NMBZ Holdings loan book increased by 12% in the full year to December (FYI5) to US$243 million as the group broadened its catchment market segments, the company said.
In the period under review, NMBZ deposits increased by 18% to US$277 million from US$236 million in the previous corresponding period as a result of a 22% increase in current and deposit accounts.
The group reported a 231% increase in attributable profit to US$5,5 million from US$1,6 million in FY14, but wrote off loans amounting to US$11,7 million in the same period.
In a statement attached to its financial results, the company said recovery prospects had been exhausted.
“Impairment losses on loans and advances amounted to US$9 496 601 for the current period of from a prior year of US$5 017 362 and the increase was due to increased provisioning as the economic environment continues to deteriorate. The board took a decision to write off loans and advances amounting to US$11 704 157 during the year under review after recovery efforts had not yielded the desired results,” said the group. Total assets grew by 17% from US$288 million to US$333 million as at December 31. NBMZ took a decision to broaden its market segments to include small to medium enterprises and ordinary workers in response to changes in the global, regional and local operating environment, the company said.
The financial institution targeted high net worth individuals.
But tight competition in the sector and the appearance of competitive players such as Ecobank and Atlas Mara in the past couple years on the scene has seen banks fighting for elusive clients.
“As initiated in September 2014, the group continued to broaden the market catchment segment for the banking subsidiary by tapping into some segments of the mass market,” the financial institution said.
NMBZ said the uptake of the mass market products has been “phenomenal”, adding the group will continue on growth opportunities available in this sector without compromising the service excellence synonymous with the bank.
“Our key differentiation in the financial services sector will continue to be service excellence, technology leadership, agility and response time and all these will be buttressed by our experienced and diversified human capital,” the group added. Total income stood at US$59 million from US$48 million. “A total US$20,6 million net interest income was reported, while US$20,9 million came from fee and commission income.