TIDMNMB
RNS Number : 0510B
NMBZ Holdings Ld
28 March 2013
NMBZ HOLDINGS LIMITED
Holding company of
NMB BANK LIMITED (Registered Commercial Bank)
ABRIDGED AUDITED RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2012
HIGHLIGHTS
31 December 31 December
--------------------------- ------------ ------------
2012 2011
--------------------------- ------------ ------------
Attributable profit (US$) 7 570 502 4 538 456
--------------------------- ------------ ------------
Basic earnings per share
(US cents) 0.27 0.16
--------------------------- ------------ ------------
Total deposits (US$) 191 422 066 139 226 144
--------------------------- ------------ ------------
Total equity (US$) 30 942 083 23 371 581
--------------------------- ------------ ------------
Enquiries:
NMBZ HOLDINGS LIMITED
James A Mushore, Group Chief Executive Officer, NMBZ Holdings
Limited jamesm@nmbz.co.zw
Francis Zimuto, Deputy Group Chief Executive Officer, NMBZ
Holdings Limited francisz@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
Tel: +263-4-759 651/9
NMBZ HOLDINGS LIMITED
CHAIRMAN'S STATEMENT
INTRODUCTION
Capital raising initiatives occupied a greater part of the year
under review in a bid to meet the Reserve Bank of Zimbabwe
prescribed minimum capital requirement of US$25 million by 31
December 2012 and increases of US$25 million per each half year to
30 June 2014. Subsequent to year end, three strategic foreign
investors will invest equity capital amounting to US$14.8 million
and this will bring NMB Bank Limited, (the Bank) into the top tier
banks in terms of capitalisation.
GROUP RESULTS
Compliance with International Financial Reporting Standards
The consolidated financial statements of NMBZ Holding Limited
and its subsidiaries (the Group) have been prepared in accordance
with International Financial Reporting Standards (IFRS). The
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$10 002 224 during the period
under review and this gave rise to an attributable profit of US$7
570 502. Net interest income was US$17 493 781 for the period.
Non-interest income amounted to US$15 609 630 and this was mainly
as a result of net commissions and fee income (US$13 016 115).
Operating expenses amounted to US$21 452 714 and these were 26%
up on prior year and were driven largely by administration,
depreciation and staff related expenditure.
Impairment losses on loans and advances amounted to US$3 985 062
for the current period from a prior year of US$2 296 111. This is
commensurate with the gross loans and advances which amounted to
US$152 417 375 at 31 December 2012 compared to US$119 596 646 as at
31 December 2011.
On 31 January 2013, the Reserve Bank of Zimbabwe and
participating members of the Bankers Association of Zimbabwe (BAZ)
signed a Memorandum of Understanding (MoU) which seeks to establish
an understanding on:
1. Bank charges on accounts whose monthly deposits are less than US$800.
2. Interest rates on lending to a maximum of the Bank's weighted average cost of funds plus a
margin of 12.5%.
These measures took effect from 1 February 2013 and going
forward these would have a pronounced effect on the Bank's
profitability.
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 35% from US$167 287 333 as at
31 December 2011 to US$226 533 682 as at 31 December 2012. The
assets comprised mainly loans, advances and other assets (US$146
599 994), investment securities held to maturity (US$5 501 963),
cash and short term funds (US$58 171 045), investment properties
(US$3 115 300), non-current assets held for sale (US$2 225 300) and
property and equipment (US$8 187 459). Gross loans and advances
increased by 27% from US$119 596 646 as at 31 December 2011 to
US$152 417 375 as at 31 December 2012. The Bank's liquidity ratio
closed the period at 42% and this was above the statutory
requirement of 30% at 31 December 2012.
Capital
The banking subsidiary's capital adequacy ratio at 31 December
2012 calculated in accordance with the guidelines of the Reserve
Bank of Zimbabwe (RBZ) was 15.50% (31 December 2011 - 14.37%). The
minimum required by the RBZ is 12%.
The Group's equity increased by 32% from US$23 371 581 as at 31
December 2011 to US$ 30 942 083 as at 31 December 2012 as a result
of growth in retained earnings.
CORPORATE SOCIAL INVESTMENTS
The Group is committed to playing an active role in the
communities it serves. Our community investments are channelled
into education, the disadvantaged, vulnerable groups, protection of
the environment, wild life conservation, the arts and various
sporting disciplines. During the year the Group invested US$100 000
in cash and practical resources for various deserving projects.
CORPORATE DEVELOPMENTS
In line with our corporate strategic thrust of enhancing service
delivery and banking convenience to our valued high net worth
individuals and businesses, we successfully launched the Visa
International Debit Card, SMS Alerts, E-Statements, DSTV Payments
Real-Time Integration and Real-Time Interface for ZIMRA obligation
payments.
OUTLOOK AND STRATEGY
The Group secured lines of credit amounting to US$26 million in
the year and these have allowed the Bank to underwrite more lending
business for our clients.
DIRECTORATE
Mr Mainos Mudukuti resigned from the Board on 22 May 2012. I
would like to thank Mr Mudukuti for his invaluable contributions to
the Board over the years. There were no other changes to the
composition of the Board during the year under review.
APPRECIATION
I would like to express my gratitude to our valued clients,
existing and new shareholders and the Regulatory Authorities for
their support during the period under review. I would also like to
record my appreciation to my fellow Board members, management and
staff for their unwavering commitment and sterling dedication which
gave rise to the attainment of these results.
T N MUNDAWARARA
CHAIRMAN
27 March 2013
NMBZ HOLDINGS LIMITED
AUDITOR'S STATEMENT
The financial results should be read in conjunction with the
complete set of financial statements for the year ended 31 December
2012, which have been audited by KPMG Chartered Accountants
(Zimbabwe) and an unmodified opinion issued thereon. The auditor's
report on the financial statements which forms the basis of these
financial results is available for inspection at the Holding
Company's registered office.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2012
31 December 31 December
------------------------------ ----- ---------------- ----------------
Note 2012 2011
------------------------------ ----- ---------------- ----------------
US$ US$
------------------------------ ----- ---------------- ----------------
Interest income 4 27 543 784 22 517 188
------------------------------ ----- ---------------- ----------------
Interest expense (10 050 003) (8 257 254)
------------------------------ ----- ---------------- ----------------
-------------- --------------
------------------------------ ----- ---------------- ----------------
Net interest income 17 493 781 14 259 934
------------------------------ ----- ---------------- ----------------
Net foreign exchange
gains 1 902 337 1 289 729
------------------------------ ----- ---------------- ----------------
Share of profit of associate 434 252 113 573
------------------------------ ----- ---------------- ----------------
Non-interest income 5 15 609 630 9 830 798
------------------------------ ----- ---------------- ----------------
-------------- -------------
------------------------------ ----- ---------------- ----------------
Net operating income 35 440 000 25 494 034
------------------------------ ----- ---------------- ----------------
Operating expenditure 6 (21 452 714) (17 004 270)
------------------------------ ----- ---------------- ----------------
Impairment losses on
loans and advances (3 985 062) (2 296 111)
------------------------------ ----- ---------------- ----------------
--------------- ------------
------------------------------ ----- ---------------- ----------------
Profit before taxation 10 002 224 6 193 653
------------------------------ ----- ---------------- ----------------
Taxation 7 (2 431 722) (1 655 197)
------------------------------ ----- ---------------- ----------------
------------- ------------
------------------------------ ----- ---------------- ----------------
Profit for the period 7 570 502 4 538 456
------------------------------ ----- ---------------- ----------------
Other comprehensive
income, net of tax - -
------------------------------ ----- ---------------- ----------------
------------ ------------
------------------------------ ----- ---------------- ----------------
Total comprehensive
income
the period 7 570 502 4 538 456
------------------------------ ----- ---------------- ----------------
======== =======
------------------------------ ----- ---------------- ----------------
Attributable to:
------------------------------ ----- ---------------- ----------------
- Owners of the parent 7 570 502 4 538 456
------------------------------ ----- ---------------- ----------------
- Non - controlling - -
interest
------------------------------ ----- ---------------- ----------------
------------- --------------
------------------------------ ----- ---------------- ----------------
7 570 502 4 538 456
------------------------------ ----- ---------------- ----------------
======== ========
------------------------------ ----- ---------------- ----------------
Earnings per share (US
cents)
------------------------------ ----- ---------------- ----------------
- Basic 9.3 0.27 0.16
------------------------------ ----- ---------------- ----------------
- Diluted headline 9.3 0.27 0.16
------------------------------ ----- ---------------- ----------------
NMBZ HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2012
31 December 31 December
------------------------------------ ----- -------------------- -------------------------
2012 2011
------------------------------------ ----- -------------------- -------------------------
EQUITY Note US$ US$
------------------------------------ ----- -------------------- -------------------------
Share capital 10 78 598 78 598
------------------------------------ ----- -------------------- -------------------------
Capital reserves 18 084 902 16 806 650
------------------------------------ ----- -------------------- -------------------------
Retained earnings 12 778 583 6 486 333
------------------------------------ ----- -------------------- -------------------------
------------- -------------
------------------------------------ ----- -------------------- -------------------------
Total equity 30 942 083 23 371 581
------------------------------------ ----- -------------------- -------------------------
LIABILITIES
------------------------------------ ----- -------------------- -------------------------
Deposits and other accounts 11 195 002 633 142 757 778
------------------------------------ ----- -------------------- -------------------------
Current tax liabilities 588 966 1 157 974
------------------------------------ ----- -------------------- -------------------------
-------------- --------------
------------------------------------ ----- -------------------- -------------------------
Total liabilities 195 591 599 143 915 752
------------------------------------ ----- -------------------- -------------------------
--------------- ----------------
------------------------------------ ----- -------------------- -------------------------
Total equity and liabilities 226 533 682 167 287 333
------------------------------------ ----- -------------------- -------------------------
============== =============
------------------------------------ ----- -------------------- -------------------------
ASSETS
------------------------------------ ----- -------------------- -------------------------
Cash and cash equivalents 13 58 171 045 32 265 953
------------------------------------ ----- -------------------- -------------------------
Investment securities held to
maturity 12 5 501 963 2 126 657
------------------------------------ ----- -------------------- -------------------------
Loans, advances and other accounts 14 146 599 994 122 260 663
------------------------------------ ----- -------------------- -------------------------
Non-current asset held for sale 15 2 225 300 -
------------------------------------ ----- -------------------- -------------------------
Quoted and other investments 326 106 309 028
------------------------------------ ----- -------------------- -------------------------
Investment in associate 19 1 025 919 591 667
------------------------------------ ----- -------------------- -------------------------
Investment properties 3 115 300 2 510 000
------------------------------------ ----- -------------------- -------------------------
Property and equipment 16 8 187 459 6 801 982
------------------------------------ ----- -------------------- -------------------------
Deferred tax assets 1 380 596 421 383
------------------------------------ ----- -------------------- -------------------------
--------------- ---------------
------------------------------------ ----- -------------------- -------------------------
Total assets 226 533 682 167 287 333
------------------------------------ ----- -------------------- -------------------------
=============== =============
------------------------------------ ----- -------------------- -------------------------
NMBZ HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2012
Capital Reserve
--------------- --------------- ----------------------------------------------------- ------------------- -----------------
Share
--------------- --------------- --------------- ----------------- ----------------- ------------------- -----------------
Share Share Option Regulatory Retained
--------------- --------------- --------------- ----------------- ----------------- ------------------- -----------------
Capital Premium Reserve Reserve Profit Total
--------------- --------------- --------------- ----------------- ----------------- ------------------- -----------------
US$ US$ US$ US$ US$ US$
--------------- --------------- --------------- ----------------- ----------------- ------------------- -----------------
Balances at 1
January 2011 78 598 15 737 548 45 671 883 414 2 087 894 18 833125
--------------- --------------- --------------- ----------------- ----------------- ------------------- -----------------
Total
comprehensive
income
for the year - - - - 4 538 456 4 538 456
--------------- --------------- --------------- ----------------- ----------------- ------------------- -----------------
Impairment
allowance for
loans and
advances - - - 140 017 (140 017) -
--------------- --------------- --------------- ----------------- ----------------- ------------------- -----------------
--------- ---------- ----------- ---------- ---------- --------
--------------- --------------- --------------- ----------------- ----------------- ------------------- -----------------
Balances at 31
December
2011 78 598 15 737 548 45 671 1 023 431 6 486 333 23 371581
--------------- --------------- --------------- ----------------- ----------------- ------------------- -----------------
Total
comprehensive
income
for the year - - - - 7 570 502 7 570 502
--------------- --------------- --------------- ----------------- ----------------- ------------------- -----------------
Impairment
allowance for
loans and
advances - - - 1 278 252 (1 278 252) -
--------------- --------------- --------------- ----------------- ----------------- ------------------- -----------------
--------- ------------- ------------ ------------- ------------ --------
--------------- --------------- --------------- ----------------- ----------------- ------------------- -----------------
Balances at 31
December
2012 78 598 15 737 548 45 671 2 301 683 12 778 583 30 942083
--------------- --------------- --------------- ----------------- ----------------- ------------------- -----------------
===== ========== ======= ========= ============ ==============
--------------- --------------- --------------- ----------------- ----------------- ------------------- -----------------
NMBZ HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2012
31 December 31 December
------------------------------------------------ ---------------- -----------------
2012 2011
------------------------------------------------ ---------------- -----------------
US$ US$
------------------------------------------------ ---------------- -----------------
CASH FLOWS FROM OPERATING ACTIVITIES
------------------------------------------------ ---------------- -----------------
Profit before taxation 10 002 224 6 193 653
------------------------------------------------ ---------------- -----------------
Non-cash items:
------------------------------------------------ ---------------- -----------------
-Depreciation 1 430 956 756 191
------------------------------------------------ ---------------- -----------------
-Impairment losses on loans and advances 3 985 062 2 296 111
------------------------------------------------ ---------------- -----------------
-Investment properties fair value adjustment (2 538 710) 40 000
------------------------------------------------ ---------------- -----------------
-Quoted and other investments fair value
adjustment (17 078) (5 689)
------------------------------------------------ ---------------- -----------------
-Profit on disposal of quoted and other
investment - (27 173)
------------------------------------------------ ---------------- -----------------
-Loss/(profit) on disposal of property
and equipment (725) 18 046
------------------------------------------------ ---------------- -----------------
-Impairment reversal loss on land and
buildings (77 472) (250 000)
------------------------------------------------ ---------------- -----------------
-Share of associate (profit)/ loss (434 252) (113 573)
------------------------------------------------ ---------------- -----------------
------------ -------------
------------------------------------------------ ---------------- -----------------
Operating cash flows before changes in
operating assets and liabilities 12 350 005 8 907 566
------------------------------------------------ ---------------- -----------------
Changes in operating assets and liabilities
------------------------------------------------ ---------------- -----------------
Deposits and other accounts 52 244 855 59 601 334
------------------------------------------------ ---------------- -----------------
Loans, advances and other accounts (28 324 393) (48 936 370)
------------------------------------------------ ---------------- -----------------
Investment securities held to maturity (3 375 306) (132 072)
------------------------------------------------ ---------------- -----------------
--------------- ----------------
------------------------------------------------ ---------------- -----------------
Net cash inflow generated from operations 32 895 161 19 440 458
------------------------------------------------ ---------------- -----------------
----------- -----------
------------------------------------------------ ---------------- -----------------
Taxation
------------------------------------------------ ---------------- -----------------
Capital gains tax paid - (2 998)
------------------------------------------------ ---------------- -----------------
Corporate tax paid (3 959 943) (1 765 544)
------------------------------------------------ ---------------- -----------------
----------- -----------
------------------------------------------------ ---------------- -----------------
Net cash inflow from operating activities 28 935 218 17 671 916
------------------------------------------------ ---------------- -----------------
----------- -----------
------------------------------------------------ ---------------- -----------------
CASH FLOWS FROM INVESTING ACTIVITIES
------------------------------------------------ ---------------- -----------------
Purchase of property and equipment (2 744 679) (3 568 013)
------------------------------------------------ ---------------- -----------------
Proceeds on disposal of property and equipment 6 443 4 688
------------------------------------------------ ---------------- -----------------
Improvements to investment property (291 890) -
------------------------------------------------ ---------------- -----------------
Increase in investment in associate - (249 538)
------------------------------------------------ ---------------- -----------------
Proceeds from disposal of quoted and other
investments - 59 961
------------------------------------------------ ---------------- -----------------
------------- ---------------
------------------------------------------------ ---------------- -----------------
Net cash outflow from investing activities (3 030 126) (3 752 902)
------------------------------------------------ ---------------- -----------------
----------- -----------
------------------------------------------------ ---------------- -----------------
Net cash inflow before financing activities 25 905 092 13 919 014
------------------------------------------------ ---------------- -----------------
----------- -----------
------------------------------------------------ ---------------- -----------------
CASH FLOWS FROM FINANCING ACTIVITIES
------------------------------------------------ ---------------- -----------------
Proceeds from issue of shares - -
------------------------------------------------ ---------------- -----------------
----------- -----------
------------------------------------------------ ---------------- -----------------
Net cash inflow from financing activities - -
------------------------------------------------ ---------------- -----------------
----------- -----------
------------------------------------------------ ---------------- -----------------
Net increase in cash and cash equivalents 25 905 092 13 919 014
------------------------------------------------ ---------------- -----------------
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) 58 171 045 32 265 953
------------------------------------------------ ---------------- -----------------
======== ========
------------------------------------------------ ---------------- -----------------
NMBZ HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2012
1. REPORTING ENTITY
The Holding Company 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
engaged in banking and other companies hold investments.
2. ACCOUNTING CONVENTION
Statement of compliance
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRSs)
and interpretations adopted by the International Accounting
Standards Board.
The consolidated financial statements have been prepared in
compliance with the Companies Act (Chapter 24:03) and the Banking
Act (Chapter 24:20).
The consolidated financial statements were approved by the Board
of Directors on 19 March 2013.
2.1 Basis of preparation
The 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 and land, buildings which are stated at
revalued amount. These consolidated financial statements are
reported in United States of America dollars and rounded to the
nearest dollar.
2.2 Basis of consolidation
The Group financial results incorporate the financial results of
the Company, its subsidiaries and associate company. Subsidiary
undertakings are those companies in which the Group, directly or
indirectly, has an interest of more than one half of the voting
rights and is able to exercise control of the operations. Control
exists when the Group has the power, directly or indirectly, to
govern the financial and operating policies of an entity so as to
obtain benefits from its activities. The financial results of the
subsidiaries are prepared for the same reporting period as the
parent company, using consistent accounting policies. All
intra-group balances, transactions, income and expenses; profits
and losses resulting from intra-group transactions that are
recognised in assets and liabilities are eliminated in full.
2.3 Comparative financial information
The 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
consolidated statement of comprehensive income and the consolidated
comparative statements of changes in equity and consolidated cash
flows are for twelve months.
2.4 Use of estimates and judgements
The preparation of consolidated financial statements in
conformity with IFRS 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 consolidated
financial statements:
2.4.1 Deferred tax liability/(asset)
Provision for deferred taxation is made using the liability
method in respect of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes
and the amounts used for taxation purposes. Temporary differences
arising out of the initial recognition of assets or liabilities and
temporary differences on initial recognition of business
combinations that affect neither accounting nor taxable profit are
not recognised. The amount of deferred tax provided is based on the
expected manner of realisation or settlement of the carrying amount
of assets and liabilities, using tax rates enacted or substantively
enacted at the reporting date. Deferred income tax assets and
liabilities are measured at the tax rates that are expected to
apply in the year when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that have been enacted
or substantively enacted at the reporting date.
In determining the amounts used for taxation purposes the
directors referred to applicable effective exchange rates at the
date of acquisition of assets or incurring of liabilities. The
Zimbabwe Revenue Authority (ZIMRA), announced methods 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.
2.4.2 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.
2.4.3 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.
2.4.4 RBZ Bond
The RBZ Bond was valued at cost as there is currently no market
information to facilitate the application of fair value principles.
There is currently no active market for these bonds.
2.4.5 Impairment losses on loans and advances
The Group 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 Group 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 8 and note 14.3 below.
2.4.6 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 consolidated financial statements on a going concern basis is
still appropriate.
NMBZ HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2012
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.
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 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 profesional 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
behavioural 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
31 December 31 December
--------------------------------- ------------ ------------
2012 2011
--------------------------------- ------------ ------------
US$ US$
--------------------------------- ------------ ------------
Loans and advances to banks 1 448 696 1 097 573
--------------------------------- ------------ ------------
Loans and advances to customers 25 554 697 21 089 867
--------------------------------- ------------ ------------
Investment securities 246 905 134 480
--------------------------------- ------------ ------------
Other 293 486 195 268
--------------------------------- ------------ ------------
---------- ---------
--------------------------------- ------------ ------------
27 543 784 22 517 188
--------------------------------- ------------ ------------
========= =========
--------------------------------- ------------ ------------
NMBZ HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2012
5. non-interest income
2012 2011
--------------------------------------------- ----------- ----------
US$ US$
--------------------------------------------- ----------- ----------
Net gains from quoted and other investments
fair value
adjustments 17 078 5 689
--------------------------------------------- ----------- ----------
Net commission and fee income 13 016 115 9 804 254
--------------------------------------------- ----------- ----------
Fair value adjustment on investment
properties 2 538 710 (40 000)
--------------------------------------------- ----------- ----------
Profit on disposal of quoted and other
investments - 27 173
--------------------------------------------- ----------- ----------
Profit/(loss) on disposal of investment
property 725 (18 046)
--------------------------------------------- ----------- ----------
Other net operating income 37 002 51 728
--------------------------------------------- ----------- ----------
--------- ---------
--------------------------------------------- ----------- ----------
15 609 630 9 830 798
--------------------------------------------- ----------- ----------
======== ========
--------------------------------------------- ----------- ----------
6. Operating EXPENDITURE
31 December 31 December
------------------------------------------- ------------ ---------------
2012 2011
------------------------------------------- ------------ ---------------
US$ US$
------------------------------------------- ------------ ---------------
The operating profit is after charging
the following:-
------------------------------------------- ------------ ---------------
Administration costs 9 540 865 8 599 112
------------------------------------------- ------------ ---------------
Audit fees:
------------------------------------------- ------------ ---------------
- Current year 51 885 31 290
------------------------------------------- ------------ ---------------
- Prior year 199 356 120 225
------------------------------------------- ------------ ---------------
Staff costs - salaries, allowances
and related costs 10 307 124 7 747 452
------------------------------------------- ------------ ---------------
Depreciation 1 430 956 756 191
------------------------------------------- ------------ ---------------
Impairment reversal on land and buildings (77 472) (250 000)
------------------------------------------- ------------ ---------------
----------- --------------
------------------------------------------- ------------ ---------------
21 452 714 17 004 270
------------------------------------------- ------------ ---------------
=========== =========
------------------------------------------- ------------ ---------------
7. taxation
31 December 31 December
-------------------- ------------ --------------
2012 2011
-------------------- ------------ --------------
Income tax expense US$ US$
-------------------- ------------ --------------
Current tax 3 292 170 2 215 095
-------------------- ------------ --------------
Aids levy 98 765 66 453
-------------------- ------------ --------------
Deferred tax (959 213) (629 349)
-------------------- ------------ --------------
Capital gains tax - 2 998
-------------------- ------------ --------------
-------- -------------
-------------------- ------------ --------------
2 431 722 1 655 197
-------------------- ------------ --------------
======== ========
-------------------- ------------ --------------
NMBZ HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2012
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.
NMBZ HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2012
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.
Headline earnings per share is calculated by dividing the profit
attributable to ordinary equity holders of NMBZ Holdings Limited
(excluding separately identifiable re-measurements, relating to any
change in the carrying amount of an asset or liability, net of
related tax (both current and deferred), other than re-measurements
specifically included in headline earnings) by the weighted average
number of ordinary shares outstanding during the year.
9.1 Earnings
31 December 31 December
------- ------------ ------------
2012 2011
------- ------------ ------------
US$ US$
------- ------------ ------------
Basic 7 570 502 4 538 456
------- ------------ ------------
9.2 Number of shares
31 December 31 December
------------------------------------- -------------------------- ------------------------------
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)
31 December 31 December
--------------- ------------ ------------
2012 2012
--------------- ------------ ------------
Basic 0.27 0.16
--------------- ------------ ------------
Diluted basic 0.27 0.16
--------------- ------------ ------------
NMBZ HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2012
10. SHARE CAPITAL
31 December 31 December 31 December 31 December
------------------------- ------------ ------------ ------------ ------------
2012 2011 2012 2011
------------------------- ------------ ------------ ------------ ------------
Shares Shares US$ US$
------------------------- ------------ ------------ ------------ ------------
million million
------------------------- ------------ ------------ ------------ ------------
10.1 Authorised
------------------------- ------------ ------------ ------------ ------------
Ordinary shares of
US$0.000028 each 3 500 3 500 98 000 98 000
------------------------- ------------ ------------ ------------ ------------
===== ===== ===== =====
------------------------- ------------ ------------ ------------ ------------
10.2 Issued and fully
paid
------------------------- ------------ ------------ ------------ ------------
31 December 31 December 31 December 31December
------------------------- ------------ ------------ ------------ ------------
2012 2011 2012 2011
------------------------- ------------ ------------ ------------ ------------
Shares Shares US$ US$
------------------------- ------------ ------------ ------------ ------------
million million
------------------------- ------------ ------------ ------------ ------------
At 1 January 2 807 2 807 78 598 78 598
------------------------- ------------ ------------ ------------ ------------
Redenomination of share - - - -
capital
------------------------- ------------ ------------ ------------ ------------
Shares issued - rights - - - -
issue
------------------------- ------------ ------------ ------------ ------------
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) amount to 85 360 962 and out of these 1 670 869 had not been
issued. As at 31 December 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.
NMBZ HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2012
11. DepositS and other accounts
31 December 31 December
----------------------------------------- ------------------------- ---------------------
2012 2011
----------------------------------------- ------------------------- ---------------------
US$ US$
----------------------------------------- ------------------------- ---------------------
11.1 Deposits and other accounts
----------------------------------------- ------------------------- ---------------------
Deposits from banks and other financial
institutions 38 969 071 43 009 970
----------------------------------------- ------------------------- ---------------------
Current and deposit accounts 152 452 995 96 216 174
----------------------------------------- ------------------------- ---------------------
---------- ----------
----------------------------------------- ------------------------- ---------------------
Total deposits 191 422 066 139 226 144
----------------------------------------- ------------------------- ---------------------
Trade and other payables 3 580 567 3 531 634
----------------------------------------- ------------------------- ---------------------
----------- ----------
----------------------------------------- ------------------------- ---------------------
195 002 633 142 757 778
----------------------------------------- ------------------------- ---------------------
========== ==========
----------------------------------------- ------------------------- ---------------------
The fair value of the above is the same as the carrying amount.
The deposits are payable on demand, have variable interest rates
and varying security.
11.2 Maturity analysis
31 December 31 December
--------------------- ------------ ------------
2012 2011
--------------------- ------------ ------------
US$ US$
--------------------- ------------ ------------
Less than one month 159 048 090 105 423 635
--------------------- ------------ ------------
1 to 3 months 8 388 210 17 727 720
--------------------- ------------ ------------
3 to 6 months 5 686 674 13 874 789
--------------------- ------------ ------------
6 months to 1 year 1 675 259 2 200 000
--------------------- ------------ ------------
1 to 5 years 16 623 833 -
--------------------- ------------ ------------
Over 5 years - -
--------------------- ------------ ------------
---------- ---------
--------------------- ------------ ------------
191 422 066 139 226 144
--------------------- ------------ ------------
========== =========
--------------------- ------------ ------------
NMBZ HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2012
31 December 31 December
---------------------------------- ------------- ----- ------------- -----
2012 2011
---------------------------------- ------------- ----- ------------- -----
US$ % US$ %
---------------------------------- ------------- ----- ------------- -----
Sectoral analysis of
deposits
---------------------------------- ------------- ----- ------------- -----
Banks and other financial
institutions 38 969 071 20 43 009 970 31
---------------------------------- ------------- ----- ------------- -----
Transport and telecommunications
companies 6 040 981 3 5 297 087 4
---------------------------------- ------------- ----- ------------- -----
Mining companies 3 221 341 2 1 144 080 1
---------------------------------- ------------- ----- ------------- -----
Municipalities and parastatals 18 768 175 10 19 879 203 14
---------------------------------- ------------- ----- ------------- -----
Manufacturing 23 888 559 12 16 811 439 12
---------------------------------- ------------- ----- ------------- -----
Distribution 17 912 925 9 8 046 243 6
---------------------------------- ------------- ----- ------------- -----
Agriculture 9 085 971 5 3 180 921 2
---------------------------------- ------------- ----- ------------- -----
Individuals 29 115 145 15 21 438 755 15
---------------------------------- ------------- ----- ------------- -----
Services 28 199 595 15 13 678 483 10
---------------------------------- ------------- ----- ------------- -----
Other deposits 16 220 303 9 6 739 964 5
---------------------------------- ------------- ----- ------------- -----
--------- ---- --------- ----
---------------------------------- ------------- ----- ------------- -----
139 226
191 422 066 100 144 100
---------------------------------- ------------- ----- ------------- -----
========== === ========== ===
---------------------------------- ------------- ----- ------------- -----
12. FINANCIAL INSTRUMENTS
Fair Fair
---------------------------- ------------ ------------ ------------ ------------
Cost Value Value Cost
---------------------------- ------------ ------------ ------------ ------------
31 December 31 December 31 December 31 December
---------------------------- ------------ ------------ ------------ ------------
2012 2012 2011 2011
---------------------------- ------------ ------------ ------------ ------------
12.1 Investment securities US$ US$ US$ US$
held to maturity
---------------------------- ------------ ------------ ------------ ------------
Government and public
sector
securities 5 501 963 5 501 963 2 126 657 2 126 257
---------------------------- ------------ ------------ ------------ ------------
RBZ Bonds (1) 5 501 963 5 501 963 2 126 657 2 126 657
---------------------------- ------------ ------------ ------------ ------------
-------- --------- ---------- ----------
---------------------------- ------------ ------------ ------------ ------------
Total 5 501 963 5 501 963 2 126 657 2 126 657
---------------------------- ------------ ------------ ------------ ------------
======== =========== ======== ========
---------------------------- ------------ ------------ ------------ ------------
(1) Investment securities held to maturity were classified as such in accordance with IAS 39.
The RBZ Bonds are valued at cost as there is currently no market
information to facilitate application of fair value principles.
NMBZ HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2012
31 December 31 December
-------------------------------------- ------------ ------------
2012 2011
-------------------------------------- ------------ ------------
US$ US$
-------------------------------------- ------------ ------------
12.2 Maturity analysis of investment
securities held to maturity
-------------------------------------- ------------ ------------
Less than 1 month - -
-------------------------------------- ------------ ------------
1 to 3 months - -
-------------------------------------- ------------ ------------
3 to 6 months 2 271 949 -
-------------------------------------- ------------ ------------
6 months to 1 year 969 004 2 126 657
-------------------------------------- ------------ ------------
1 year to 5 years 2 261 010 -
-------------------------------------- ------------ ------------
Over 5 years - -
-------------------------------------- ------------ ------------
-------- ---------
-------------------------------------- ------------ ------------
5 501 963 2 126 657
-------------------------------------- ------------ ------------
======== ========
-------------------------------------- ------------ ------------
31 December 31 December
----------------------------------- ------------ ------------
2012 2011
----------------------------------- ------------ ------------
US$ US$
----------------------------------- ------------ ------------
13. Cash and cash equivalents
----------------------------------- ------------ ------------
Balances with the Central Bank 22 671 712 12 255 166
----------------------------------- ------------ ------------
Current, nostro accounts and cash 14 999 333 13 231 912
----------------------------------- ------------ ------------
Interbank placements 20 500 000 6 778 875
----------------------------------- ------------ ------------
---------- ---------
----------------------------------- ------------ ------------
58 171 045 32 265 953
----------------------------------- ------------ ------------
========== ==========
----------------------------------- ------------ ------------
NMBZ HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2012
14. LOANS, ADVANCES AND OTHER ACCOUNTS
14.1 Total loans, advances and other accounts
31 December 31 December
---------------------------- ------------- --------------
2012 2011
---------------------------- ------------- --------------
14.1.1 Advances US$ US$
---------------------------- ------------- --------------
Fixed term loans 57 124 283 36 116 550
---------------------------- ------------- --------------
Local loans and overdrafts 86 823 914 79 078 001
---------------------------- ------------- --------------
------------ -----------
---------------------------- ------------- --------------
143 948 197 115 194 551
---------------------------- ------------- --------------
Statutory reserves* - 3 231 838
---------------------------- ------------- --------------
Other accounts 2 651 797 3 834 274
---------------------------- ------------- --------------
------------ -------------
---------------------------- ------------- --------------
146 599 994 122 260 663
---------------------------- ------------- --------------
============ =============
---------------------------- ------------- --------------
*The statutory reserve balance with the Reserve Bank of Zimbabwe
was non-interest bearing.
The balance was determined on the basis of deposits held and is
not available to the Bank for daily use. The balances owed to banks
were converted to tradable interest bearing instruments on 16
February 2012. The amount was reclassified to Investment securities
held to maturity (note 12).
31 December 31 December
------------------------------------ -------------- ----------------
2012 2011
------------------------------------ -------------- ----------------
14.1.2 Maturity analysis US$ US$
------------------------------------ -------------- ----------------
Less than one month 92 386 313 75 590 457
------------------------------------ -------------- ----------------
1 to three months 19 352 134 22 083 400
------------------------------------ -------------- ----------------
3 to 6 months 3 271 119 885 387
------------------------------------ -------------- ----------------
6 months to 1 year 4 968 635 2 875 529
------------------------------------ -------------- ----------------
1 to 5 years 32 439 174 18 161 873
------------------------------------ -------------- ----------------
Over 5 years - -
------------------------------------ -------------- ----------------
---------- ---------------
------------------------------------ -------------- ----------------
Total advances 152 417 375 119 596 646
------------------------------------ -------------- ----------------
Provision for impairment losses on
loans and advances (7 269 799) (3 354 088)
------------------------------------ -------------- ----------------
Suspended interest (1 199 379) (1 048 007)
------------------------------------ -------------- ----------------
---------- ----------
------------------------------------ -------------- ----------------
143 948 197 115 194 551
------------------------------------ -------------- ----------------
Statutory reserves - 3 231 838
------------------------------------ -------------- ----------------
Other accounts 2 651 797 3 834 274
------------------------------------ -------------- ----------------
---------- ---------
------------------------------------ -------------- ----------------
146 599 994 122 260 663
------------------------------------ -------------- ----------------
========== ==========
------------------------------------ -------------- ----------------
NMBZ HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2012
14.2 Sectoral analysis of utilizations
31 December 31 December
------------------------------ ------------- ---- ------------ ----
2012 2011
------------------------------ ------------- ---- ------------ ----
US$ % US$ %
------------------------------ ------------- ---- ------------ ----
14.2 Sectoral analysis
of
utilisations
------------------------------ ------------- ---- ------------ ----
Manufacturing 29 008 475 19 26 977 166 23
------------------------------ ------------- ---- ------------ ----
Distribution 46 673 432 31 33 713 556 28
------------------------------ ------------- ---- ------------ ----
Agriculture and horticulture 9 894 729 6 9 121 606 8
------------------------------ ------------- ---- ------------ ----
Conglomerates 4 683 682 3 4 700 752 4
------------------------------ ------------- ---- ------------ ----
Services 30 216 258 20 17 076 201 14
------------------------------ ------------- ---- ------------ ----
Mining 1 347 402 1 3 856 637 3
------------------------------ ------------- ---- ------------ ----
Food and beverages 214 163 - 5 747 287 5
------------------------------ ------------- ---- ------------ ----
Individuals 30 379 234 20 18 403 441 15
------------------------------ ------------- ---- ------------ ----
------------ --- ---------- ---
------------------------------ ------------- ---- ------------ ----
119 596
152 417 375 100 646 100
------------------------------ ------------- ---- ------------ ----
============ === =========== ===
------------------------------ ------------- ---- ------------ ----
The material concentration of loans and advances are in the
distribution sector at 31% (2011 - 28%).
14.3 Allowance for impairment losses on loans and advances
31 December 2012 31 December 2011
------------------- ---------------------------------------- ---------------------------------------------
Specific Portfolio Total Specific Portfolio Total
------------------- ------------- ---------- ------------- -------------- -------------- -------------
US$ US$ US$ US$ US$ US$
------------------- ------------- ---------- ------------- -------------- -------------- -------------
At 1 January 3 354 088 - 3 354 088 1 057 977 - 1 057 977
------------------- ------------- ---------- ------------- -------------- -------------- -------------
Charge against
profits 3 879 327 105 735 3 985 062 2 296 111 - 2 296 111
------------------- ------------- ---------- ------------- -------------- -------------- -------------
Bad debts written
off (69 351) - (69 351) - - -
------------------- ------------- ---------- ------------- -------------- -------------- -------------
------------ --------- ------------ ------------- ------------- ------------
------------------- ------------- ---------- ------------- -------------- -------------- -------------
At 31 December 7 164 064 105 735 7 269 799 3 354 088 - 3 354 088
------------------- ------------- ---------- ------------- -------------- -------------- -------------
======== ====== ======== ======== ======== =======
------------------- ------------- ---------- ------------- -------------- -------------- -------------
14.4 Non-performing loans and advances
31 December 31 December
----------------------------------------- ------------ ----------------------
2012 2011
----------------------------------------- ------------ ----------------------
US$ US$
----------------------------------------- ------------ ----------------------
Total non-performing loans and advances 23 996 312 10 294 437
----------------------------------------- ------------ ----------------------
Provision for impairment loss on
loans and advances (7 164 064) (3 354 088)
----------------------------------------- ------------ ----------------------
Suspended interest (1 199 379) (1 048 007)
----------------------------------------- ------------ ----------------------
--------- ----------
----------------------------------------- ------------ ----------------------
Residue 15 632 869 5 892 342
----------------------------------------- ------------ ----------------------
========== ==========
----------------------------------------- ------------ ----------------------
The residue on these accounts represents recoverable portions
covered by realisable security.
NMBZ HOLDINGS LIMITED
NOTES TO THE CONSOLIDTED FINANCIAL STATEMENTS
for the year ended 31 December 2012
15 Non-current asset held for sale
31 December 31 December
-------------------- ------------ ----------------------
2012 2011
-------------------- ------------ ----------------------
US$ US$
-------------------- ------------ ----------------------
Investment property 2 225 300 -
-------------------- ------------ ----------------------
======== ========
-------------------- ------------ ----------------------
The Group is in possession of land with a fair value of US$2 225
300 at year end. During the last quarter of 2012 management decided
to sell the property and have identified interested buyers. The
disposal process is expected to be completed in May 2013. The
disposal will improve the Group's cash flows. The fair value
adjustment on recognition as a non-current asset held for sale is
included under non-interest income (note 5).
NMBZ HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2012
16. PROPERTY AND EQUIPMENT
Furniture Freehold
----------------------------- ---------------- -------------- -------------- -------------------- -------------
Motor and Land &
----------------------------- ---------------- -------------- -------------- -------------------- -------------
Computer Vehicles equipment Buildings Total
----------------------------- ---------------- -------------- -------------- -------------------- -------------
US$ US$ US$ US$ US$
----------------------------- ---------------- -------------- -------------- -------------------- -------------
COST
----------------------------- ---------------- -------------- -------------- -------------------- -------------
Balance at 1 January 4 742
2011 717 599 220 119 1 389 505 2 415 000 223
----------------------------- ---------------- -------------- -------------- -------------------- -------------
3 568
Additions 818 939 1 564 286 1 176 536 8 252 013
----------------------------- ---------------- -------------- -------------- -------------------- -------------
Revaluation gain - - - 250 000 250 000
----------------------------- ---------------- -------------- -------------- -------------------- -------------
Reclassifications 15 663 - 15 663 - -
----------------------------- ---------------- -------------- -------------- -------------------- -------------
Disposals (27 930) (17 890) (71 677) - (117 497)
----------------------------- ---------------- -------------- -------------- -------------------- -------------
Transfer in from investment
property - - - 65 000 65 000
----------------------------- ---------------- -------------- -------------- -------------------- -------------
--------------- ------------- ------------- ------------ ------------
----------------------------- ---------------- -------------- -------------- -------------------- -------------
Balance at 31 December 8 507
2011 1 524 271 1 766 515 2 478 701 2 738 252 739
----------------------------- ---------------- -------------- -------------- -------------------- -------------
2 744
Additions 920 559 1 556 092 268 028 - 679
----------------------------- ---------------- -------------- -------------- -------------------- -------------
Revaluation gain - - - 77 472 77 472
----------------------------- ---------------- -------------- -------------- -------------------- -------------
Reclassifications 251 703 - (251 703) - -
----------------------------- ---------------- -------------- -------------- -------------------- -------------
Disposals - (250) (10 825) - (11 075)
----------------------------- ---------------- -------------- -------------- -------------------- -------------
-------- -------- --------- ------------- ---------
----------------------------- ---------------- -------------- -------------- -------------------- -------------
Balance at 31 December 11 318
2012 2 696 533 3 322 357 2 484 201 2 815 724 815
----------------------------- ---------------- -------------- -------------- -------------------- -------------
-------- -------- --------- ------------- ---------
----------------------------- ---------------- -------------- -------------- -------------------- -------------
ACCUMULATED
DEPRECIATON
----------------------------- ---------------- -------------- -------------- -------------------- -------------
Balance at 1 January 1 044
2011 317 306 77 024 649 931 69 330
----------------------------- ---------------- -------------- -------------- -------------------- -------------
Charge for the year 178 694 256 817 320 456 224 756 191
----------------------------- ---------------- -------------- -------------- -------------------- -------------
Disposals (29 257) (10 640) (54 967) - (94 764)
----------------------------- ---------------- -------------- -------------- -------------------- -------------
Reclassifications 3 133 - (3 133) - -
----------------------------- ---------------- -------------- -------------- -------------------- -------------
----------- ----------- ----------- ---------- ------------
----------------------------- ---------------- -------------- -------------- -------------------- -------------
Balance at 31 December 1 705
2011 469 976 323 201 912 287 293 757
----------------------------- ---------------- -------------- -------------- -------------------- -------------
1 430
Charge for the year 310 381 662 445 412 700 45 430 956
----------------------------- ---------------- -------------- -------------- -------------------- -------------
Disposals - (250) (5 107) - (5 357)
----------------------------- ---------------- -------------- -------------- -------------------- -------------
Reclassifications 65 826 - (65 826) - -
----------------------------- ---------------- -------------- -------------- -------------------- -------------
-------- -------- --------- --------- --------
----------------------------- ---------------- -------------- -------------- -------------------- -------------
3 131
At 31 December 2012 846 182 985 396 1 254 054 45 723 356
----------------------------- ---------------- -------------- -------------- -------------------- -------------
-------- -------- --------- --------- ---------
----------------------------- ---------------- -------------- -------------- -------------------- -------------
NET BOOK VALUE
----------------------------- ---------------- -------------- -------------- -------------------- -------------
3 697
At 1 January 2011 400 293 143 095 739 574 2 414 931 893
----------------------------- ---------------- -------------- -------------- -------------------- -------------
======== ======== ======== ======== ===========
----------------------------- ---------------- -------------- -------------- -------------------- -------------
6 801
At 31 December 2011 1 054 295 1 443 314 1 566 414 2 737 959 982
----------------------------- ---------------- -------------- -------------- -------------------- -------------
======== ======= ====== ========= =========
----------------------------- ---------------- -------------- -------------- -------------------- -------------
8 187
At 31 December 2012 1 850 350 2 336 961 1 230 147 2 770 001 459
----------------------------- ---------------- -------------- -------------- -------------------- -------------
======== ======== ========= ========= =========
----------------------------- ---------------- -------------- -------------- -------------------- -------------
The land and buildings were valued by professional valuers as at
31 December 2012 for year end purposes and the open market value
was US$2.8 million.
NMBZ HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2012
17. CAPITAL COMMITMENTS
31 December 31 December
------------------------------------ ------------ ------------
2012 2011
------------------------------------ ------------ ------------
US$ US$
------------------------------------ ------------ ------------
Capital expenditure contracted for - 45 107
------------------------------------ ------------ ------------
Capital expenditure authorised but
not yet contracted for 5 739 655 6 908 068
------------------------------------ ------------ ------------
--------- ---------
------------------------------------ ------------ ------------
5 739 655 6 953 175
------------------------------------ ------------ ------------
======== ========
------------------------------------ ------------ ------------
The capital expenditure will be funded from internal
resources.
18. CONTINGENT LIABILITIES
31 December 31December
--------------------- ------------ -----------
2012 2011
--------------------- ------------ -----------
US$ US$
--------------------- ------------ -----------
Guarantees 7 827 744 6 374 815
--------------------- ------------ -----------
Commitments to lend 29 326 528 20 385 351
--------------------- ------------ -----------
--------- --------
--------------------- ------------ -----------
37 154 272 26 760 166
--------------------- ------------ -----------
========= =========
--------------------- ------------ -----------
NMBZ HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2012
19. 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 audited
financial information of the Group's investment in African Century
Limited.
Share of the associate's statement of financial position:
31 December 31December
------------------------------------------ ------------ ------------
2012 2011
------------------------------------------ ------------ ------------
US$ US$
------------------------------------------ ------------ ------------
Current assets 5 036 603 2 831 891
------------------------------------------ ------------ ------------
Non-current assets 56 750 68 577
------------------------------------------ ------------ ------------
Current liabilities (457 427) (133 823)
------------------------------------------ ------------ ------------
Non-current liabilities (3 610 007) (2 174 978)
------------------------------------------ ------------ ------------
--------- ---------
------------------------------------------ ------------ ------------
Equity 1 025 919 591 667
------------------------------------------ ------------ ------------
========= =========
------------------------------------------ ------------ ------------
Share of associate's revenue and profit:
------------------------------------------ ------------ ------------
Revenue 904 446 571 617
------------------------------------------ ------------ ------------
======= =======
------------------------------------------ ------------ ------------
Profit 434 252 (113 573)
------------------------------------------ ------------ ------------
======== =======
------------------------------------------ ------------ ------------
Carrying amount of the investment 1 025 919 591 667
------------------------------------------ ------------ ------------
Reconciliation of carrying amount
of investment
in Associate:
------------------------------------------ ------------ ------------
Balance at 1 January 591 667 228 556
------------------------------------------ ------------ ------------
Increase in investment - 249 538
------------------------------------------ ------------ ------------
Share of profit 434 252 113 573
------------------------------------------ ------------ ------------
-------- ------
------------------------------------------ ------------ ------------
Balance at 31 December 1 025 919 591 667
------------------------------------------ ------------ ------------
======== =======
------------------------------------------ ------------ ------------
The disposal of the 24.79% shareholding in the Associate is
still in progress, an agreement has been signed with the potential
buyer and regulatory approvals are still pending.
20. EXCHANGE RATES
The following exchange rates have been used to translate the
foreign currency balances to United States dollars at period
end:-
Mid-rate Mid-rate
------------------------ ----- ------------ ------------
31 December 31 December
2012 2011
------------------------ ----- ------------ ------------
US$ US$
------------------------ ----- ------------ ------------
British Pound Sterling GBP 1.6156 1.5416
------------------------ ----- ------------ ------------
South African Rand ZAR 8.4776 8.1852
------------------------ ----- ------------ ------------
European Euro EUR 1.3200 1.2944
------------------------ ----- ------------ ------------
Botswana Pula BWP 7.7721 7.5301
------------------------ ----- ------------ ------------
NMBZ HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2012
21. EVENTS AFTER REPORTING DATE
21.1 Memorandum of understanding
On 31 January 2013, the Reserve Bank of Zimbabwe and
participating members of the Bankers Association of Zimbabwe (BAZ)
signed a Memorandum of Understanding (MoU) which seeks to establish
an understanding on:
1. Bank charges on accounts whose monthly deposits are less than US$800.
2. Interest rates on lending to a maximum of the Bank's weighted average cost of funds plus a
margin of 12.5%.
These measures took effect from 1 February 2013 and going
forward these would have a pronounced effect on the Bank's
profitability.
21.2 Recapitalisation
The shareholders of NMBZ Holdings Limited approved at an
Extraordinary General Meeting held on 19 February 2013 an
investment of US$14.8 million equity capital by three (3) strategic
foreign investors. In addition, one of the strategic foreign
investors will provide a 7 year subordinated debt of US$1.4 million
to the Bank. The US$14.8 million equity to be raised subsequent to
year end will be invested as equity capital in the Bank by the
holding company.
NMB BANK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2012
31 December 31 December
-------------------------------- ------ ----------------------------- -------------------------------
Note 2012 2011
--------------------------------------- ----------------------------- -------------------------------
US$ US$
-------------------------------- ------ ----------------------------- -------------------------------
Interest income 27 305 825 22 349 133
---------------------------------------- ----------------------------- -------------------------------
Interest expense (10 053 589) (8 257 883)
---------------------------------------- ----------------------------- -------------------------------
-------------- -------------
-------------------------------- ------ ----------------------------- -------------------------------
Net interest income 17 252 236 14 091 250
---------------------------------------- ----------------------------- -------------------------------
Net foreign exchange gains 1 902 337 1 289 729
---------------------------------------- ----------------------------- -------------------------------
Non-interest income a 15 587 594 9 773 527
-------------------------------- ------ ----------------------------- -------------------------------
-------------- --------------
-------------------------------- ------ ----------------------------- -------------------------------
Net operating income 34 742 167 25 154 506
---------------------------------------- ----------------------------- -------------------------------
Operating expenditure b (20 655 380) (17 004 270)
-------------------------------- ------ ----------------------------- -------------------------------
Impairment losses on loans
and advances (3 985 062) (2 296 111)
---------------------------------------- ----------------------------- -------------------------------
-------------- --------------
-------------------------------- ------ ----------------------------- -------------------------------
Profit before taxation 10 101 725 5 854 125
---------------------------------------- ----------------------------- -------------------------------
Taxation (2 452 323) (1 574 148)
---------------------------------------- ----------------------------- -------------------------------
---------- ---------
-------------------------------- ------ ----------------------------- -------------------------------
Profit for the period 7 649 402 4 279 977
---------------------------------------- ----------------------------- -------------------------------
--------- ---------
-------------------------------- ------ ----------------------------- -------------------------------
Other comprehensive income - -
-------------------------------- ------ ----------------------------- -------------------------------
--------- --------
-------------------------------- ------ ----------------------------- -------------------------------
Total comprehensive income
for the
period 7 649 402 4 279 977
---------------------------------------- ----------------------------- -------------------------------
========= ========
-------------------------------- ------ ----------------------------- -------------------------------
Earnings per share (US cents):
-------------------------------- ------ ----------------------------- -------------------------------
-Basic c 46.36 25.94
-------------------------------- ------ ----------------------------- -------------------------------
NMB BANK LIMITED
STATEMENT OF FINANCIAL POSITION
As at 31 December 2012
31 December 31 December
------------------------------ ------ ----------------------------------- -------------------------------------
Note 2012 2011
------------------------------------- ----------------------------------- -------------------------------------
EQUITY US$ US$
------------------------------ ------ ----------------------------------- -------------------------------------
Share capital d 16 502 16 501
------------------------------ ------ ----------------------------------- -------------------------------------
Capital reserves 17 879 615 14 714 362
-------------------------------------- ----------------------------------- -------------------------------------
Retained earnings 12 487 547 6 116 397
-------------------------------------- ----------------------------------- -------------------------------------
--------------- --------------
------------------------------ ------ ----------------------------------- -------------------------------------
Total equity 30 383 664 20 847 260
-------------------------------------- ----------------------------------- -------------------------------------
LIABILITIES
------------------------------ ------ ----------------------------------- -------------------------------------
Deposits and other accounts 194 981 244 142 869 053
-------------------------------------- ----------------------------------- -------------------------------------
Amount owing to Holding - -
Company
------------------------------ ------ ----------------------------------- -------------------------------------
Current tax liabilities 728 620 1 073 698
-------------------------------------- ----------------------------------- -------------------------------------
------------ ------------
------------------------------ ------ ----------------------------------- -------------------------------------
Total liabilities 195 709 864 143 942 751
-------------------------------------- ----------------------------------- -------------------------------------
----------- -------------
------------------------------ ------ ----------------------------------- -------------------------------------
Total equity and liabilities 226 093 528 164 790 011
-------------------------------------- ----------------------------------- -------------------------------------
============ ============
------------------------------ ------ ----------------------------------- -------------------------------------
ASSETS
------------------------------ ------ ----------------------------------- -------------------------------------
Cash and cash equivalents e 58 171 045 32 265 953
------------------------------ ------ ----------------------------------- -------------------------------------
Investments securities held
to maturity 5 501 963 2 126 657
-------------------------------------- ----------------------------------- -------------------------------------
Amount owing from Holding 956 161 -
Company
------------------------------ ------ ----------------------------------- -------------------------------------
Loans, advances and other
accounts 146 485 358 120 574 324
-------------------------------------- ----------------------------------- -------------------------------------
Non - current asset held 2 225 300 -
for sale
------------------------------ ------ ----------------------------------- -------------------------------------
Unquoted investments 82 513 81 278
-------------------------------------- ----------------------------------- -------------------------------------
Investment properties f 3 115 300 2 510 000
------------------------------ ------ ----------------------------------- -------------------------------------
Property and equipment 8 187 459 6 801 982
-------------------------------------- ----------------------------------- -------------------------------------
Deferred tax 1 368 429 429 817
-------------------------------------- ----------------------------------- -------------------------------------
----------- ----------
------------------------------ ------ ----------------------------------- -------------------------------------
Total assets 226 093 528 164 790 011
-------------------------------------- ----------------------------------- -------------------------------------
============ ===========
------------------------------------- ----------------------------------- -------------------------------------
NMB BANK LIMITED
STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2012
Capital Reserves
--------------- ------------------------------- ---------------------------------------------------------- ----------------- ------------------------
Share Share Revaluation Retained
--------------- ------------------------------- ---------------------------------- ---------------------- ----------------- ------------------------
Capital Premium Reserve Earnings Total
--------------- ------------------------------- ---------------------------------- ---------------------- ----------------- ------------------------
US$ US$ US$ US$ US$
--------------- ------------------------------- ---------------------------------- ---------------------- ----------------- ------------------------
Balances at 31
December 2010 16 501 13 690 931 883 414 1 976 437 16 567 283
--------------- ------------------------------- ---------------------------------- ---------------------- ----------------- ------------------------
Total
comprehensive
income for
the year - - - 4 279 977 4 279 977
--------------- ------------------------------- ---------------------------------- ---------------------- ----------------- ------------------------
Impairment
allowance for
loan and
advances - - 140 017 (140 017) -
--------------- ------------------------------- ---------------------------------- ---------------------- ----------------- ------------------------
---------- ------------- ---------- ---------- -----------
--------------- ------------------------------- ---------------------------------- ---------------------- ----------------- ------------------------
Balances as
at 31
December 20 847
2011 16 501 13 690 931 1 023 431 6 116 397 260
--------------- ------------------------------- ---------------------------------- ---------------------- ----------------- ------------------------
Total
comprehensive
income for
the year - - - 7 649 402 7 649 402
--------------- ------------------------------- ---------------------------------- ---------------------- ----------------- ------------------------
Shares issued 1 1 887 001 - - 1 887 002
--------------- ------------------------------- ---------------------------------- ---------------------- ----------------- ------------------------
Impairment
allowance
reversal for
loans (1 278
and advances - - 1 278 252 252) -
--------------- ------------------------------- ---------------------------------- ---------------------- ----------------- ------------------------
------- --------------- ---------- ----------- -----------
--------------- ------------------------------- ---------------------------------- ---------------------- ----------------- ------------------------
Balance at 31
December 2011 16 502 15 577 932 2 301 683 12 487 547 30 383 664
--------------- ------------------------------- ---------------------------------- ---------------------- ----------------- ------------------------
===== =========== ========= =========== =================
--------------- ------------------------------- ---------------------------------- ---------------------- ----------------- ------------------------
NMB BANK LIMITED
STATEMENT OF CASH FLOWS
for the year ended 31 December 2012
31 December 31 December
------------------------------------------------ -------------- --------------
2012 2011
------------------------------------------------ -------------- --------------
US$ US$
------------------------------------------------ -------------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES
------------------------------------------------ -------------- --------------
Profit before taxation 10 101 725 5 854 125
------------------------------------------------ -------------- --------------
Non-cash items
------------------------------------------------ -------------- --------------
-Impairment losses on loans and advances 3 985 062 2 296 111
------------------------------------------------ -------------- --------------
-Investment properties fair value adjustment (2 538 710) 40 000
------------------------------------------------ -------------- --------------
-(Profit)/loss on disposal of property
and equipment (725) 18 046
------------------------------------------------ -------------- --------------
-Quoted and other investments fair value
adjustment (1 235) (2 406)
------------------------------------------------ -------------- --------------
-Impairment reversal on land and buildings (77 472) (250 000)
------------------------------------------------ -------------- --------------
-Depreciation 1 430 956 756 191
------------------------------------------------ -------------- --------------
------------- -------------
------------------------------------------------ -------------- --------------
Operating cash flows before changes in
operating assets and liabilities 12 899 601 8 712 067
------------------------------------------------ -------------- --------------
Changes in operating assets and liabilities
------------------------------------------------ -------------- --------------
Deposits and other liabilities 52 112 191 59 604 950
------------------------------------------------ -------------- --------------
Loans, advances and other assets (30 852 257) (47 187 464)
------------------------------------------------ -------------- --------------
Investment securities held to maturity (3 375 306) (132 072)
------------------------------------------------ -------------- --------------
----------- -----------
------------------------------------------------ -------------- --------------
Net cash inflow generated from operations 30 784 229 20 997 481
------------------------------------------------ -------------- --------------
----------- -----------
------------------------------------------------ -------------- --------------
Taxation
------------------------------------------------ -------------- --------------
Corporate tax paid (3 736 013) (1 765 142)
------------------------------------------------ -------------- --------------
----------- -----------
------------------------------------------------ -------------- --------------
Net cash inflow from operating activities 27 048 216 19 232 339
------------------------------------------------ -------------- --------------
----------- ----------
------------------------------------------------ -------------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES
------------------------------------------------ -------------- --------------
Proceeds on disposal of property and equipment 6 443 4 688
------------------------------------------------ -------------- --------------
Purchase of property and equipment (2 744 679) (3 568 013)
------------------------------------------------ -------------- --------------
Improvements to investment property (291 890) -
------------------------------------------------ -------------- --------------
----------- -----------
------------------------------------------------ -------------- --------------
Net cash outflow from investing activities (3 030 126) (3 563 325)
------------------------------------------------ -------------- --------------
----------- -----------
------------------------------------------------ -------------- --------------
Net cash inflow before financing activities 24 018 090 15 669 014
------------------------------------------------ -------------- --------------
----------- -----------
------------------------------------------------ -------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES
------------------------------------------------ -------------- --------------
Proceeds from issue of shares 1 887 002 -
------------------------------------------------ -------------- --------------
(Decrease)/increase in amount from Holding
Company - (1 750 000)
------------------------------------------------ -------------- --------------
------------- -------------
------------------------------------------------ -------------- --------------
Net cash inflow/(outflow) inflow from
financing activities 1 887 002 (1 750 000)
------------------------------------------------ -------------- --------------
----------- -----------
------------------------------------------------ -------------- --------------
Net increase in cash and cash equivalents 25 905 092 13 919 014
------------------------------------------------ -------------- --------------
Cash and cash equivalents at the beginning
of the year 32 265 953 18 346 939
------------------------------------------------ -------------- --------------
----------- -----------
------------------------------------------------ -------------- --------------
Cash and cash equivalents at the end of
the year (note e) 58 171 045 32 265 953
------------------------------------------------ -------------- --------------
========= =========
------------------------------------------------ -------------- --------------
NMB BANK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2012
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 financial statements under NMBZ
Holdings Limited are therefore the same as those of the Bank in
every material respect.
a. NON-INTEREST income
31 December 31 December
------------------------------- ------------ ------------
2012 2011
------------------------------- ------------ ------------
US$ US$
------------------------------- ------------ ------------
Net gain from quoted and
other investments 1 235 2 406
------------------------------- ------------ ------------
Investment properties fair
value adjustment 2 538 710 (40 000)
------------------------------- ------------ ------------
Net commission and fee income 13 016 115 9 804 250
------------------------------- ------------ ------------
Profit/(loss) on disposal
of property 725 (18 046)
------------------------------- ------------ ------------
Other net operating income 30 809 24 917
------------------------------- ------------ ------------
-------- --------
------------------------------- ------------ ------------
15 587 594 9 773 527
------------------------------- ------------ ------------
======== ========
------------------------------- ------------ ------------
b. Operating EXPENDITURE
31 December 31 December
------------------------------------ ------------ ---------------
2012 2011
------------------------------------ ------------ ---------------
US$ US$
------------------------------------ ------------ ---------------
The operating profit is after
charging the following:
------------------------------------ ------------ ---------------
Administration costs 9 540 864 8 599 112
------------------------------------ ------------ ---------------
Audit fees
------------------------------------ ------------ ---------------
- Current year 51 885 31 290
------------------------------------ ------------ ---------------
- Prior year 199 356 120 225
------------------------------------ ------------ ---------------
Staff costs - salaries, allowances
and related costs 9 509 791 7 747 452
------------------------------------ ------------ ---------------
Depreciation 1 430 956 756 191
------------------------------------ ------------ ---------------
Impairment (gain)/loss on land
and buildings (77 472) (250 000)
------------------------------------ ------------ ---------------
-------- --------------
------------------------------------ ------------ ---------------
20 655 380 17 004 270
------------------------------------ ------------ ---------------
========= ========
------------------------------------ ------------ ---------------
NMB BANK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2012
c. EARNINGS PER SHARE
The calculation of earnings per share is based on the following
figures:
c.1 Earnings
31 December 31 December
------- ------------ ------------
2012 2011
------- ------------ ------------
US$ US$
------- ------------ ------------
Basic 7 649 402 4 279 977
------- ------------ ------------
c.2 Number of shares
Weighted average shares in issue 16 501 500 16 501 000
---------------------------------- ----------- -----------
c.3 Earnings per share (US cents)
Basic 46.36 25.94
------- ------ ------
NMB BANK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2012
d. SHARE CAPITAL
d.1 Authorised
The authorised ordinary share capital at 31 December 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 31 December 2012 is at the
historical cost figure of US$16 502 (2011 - US$16 501) comprising
16.5015 million (2011 - 16.501 million) ordinary shares of US$0.001
each
e. CASH AND CASH EQUIVALENTS
31 December 31 December
----------------------------------- ------------ ------------
2012 2011
----------------------------------- ------------ ------------
US$ US$
----------------------------------- ------------ ------------
Balance with the Central Bank 22 671 712 12 255 166
----------------------------------- ------------ ------------
Current, nostro accounts and cash 14 999 333 13 231 912
----------------------------------- ------------ ------------
Interbank placements 20 500 000 6 778 875
----------------------------------- ------------ ------------
--------- ---------
----------------------------------- ------------ ------------
58 171 045 32 265 953
----------------------------------- ------------ ------------
========= ========
----------------------------------- ------------ ------------
f. INVESTMENT PROPERTIES
31 December 31 December
----------------------------------- ------------ ------------
2012 2011
----------------------------------- ------------ ------------
US$ US$
----------------------------------- ------------ ------------
Opening balance 2 510 000 2 615 000
----------------------------------- ------------ ------------
Improvements 291 890 -
----------------------------------- ------------ ------------
Net transfers out to property and
equipment - (65 000)
----------------------------------- ------------ ------------
Disposals (2 225 300) -
----------------------------------- ------------ ------------
Fair value adjustments 2 538 710 (40 000)
----------------------------------- ------------ ------------
-------- --------
----------------------------------- ------------ ------------
3 115 300 2 510 000
----------------------------------- ------------ ------------
======== ========
----------------------------------- ------------ ------------
Rental income amounting to US$12 408 (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 31 December 2012. The professional valuers considered comparable
market evidence of recent sale transactions and those transactions
where firm offers had been made but awaiting acceptance.
NMB BANK LIMITED
g. CORPORATE GOVERNANCE AND RISK MANAGEMENT
1. RESPONSIBILITY
These 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 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
3.1.1 Board of Directors
Name Meetings Meetings
held attended
-------------------- --------- ----------
T N Mundawarara 4 4
-------------------- --------- ----------
A M T Mutsonziwa 4 3
-------------------- --------- ----------
J A Mushore 4 4
-------------------- --------- ----------
F Zimuto 4 4
-------------------- --------- ----------
B Ndachena 4 4
-------------------- --------- ----------
B W Madzivire 4 3
-------------------- --------- ----------
L Majonga (Ms) 4 4
-------------------- --------- ----------
J Chigwedere 4 4
-------------------- --------- ----------
J de la Fargue 4 4
-------------------- --------- ----------
J Chenevix-Trench 4 4
-------------------- --------- ----------
B P Washaya 4 4
-------------------- --------- ----------
L Chinyamutangira 4 4
-------------------- --------- ----------
F S Mangozho 4 4
-------------------- --------- ----------
3.1.2 Audit Committee
Name Meetings Meetings
held attended
---------------------- --------- ----------
Mr B W Madzivire 4 4
---------------------- --------- ----------
Mr A M T Mutsonziwa 4 3
---------------------- --------- ----------
Ms L Majonga 4 4
---------------------- --------- ----------
3.1.3 Risk Management Committee
Name Meetings Meetings
held attended
-------------------- --------- ----------
Mr J Chigwedere 4 4
-------------------- --------- ----------
Ms L Majonga 4 4
-------------------- --------- ----------
Mr B P Washaya 4 3
-------------------- --------- ----------
Mr J de la Fargue 4 3
-------------------- --------- ----------
Mr J A Mushore 4 2
-------------------- --------- ----------
Mr F Zimuto 4 4
-------------------- --------- ----------
Mr F Mangozho 4 4
-------------------- --------- ----------
3.1.4 Asset and Liability Management Committee (ALCO), Finance & Strategy Committee
Name Meetings Meetings
held attended
---------------------- --------- ----------
Mr T N Mundawarara 4 4
---------------------- --------- ----------
Mr B P Washaya 4 4
---------------------- --------- ----------
Mr B Ndachena 4 4
---------------------- --------- ----------
Mr J Mushore 4 3
---------------------- --------- ----------
Mr J Chenevix-Trench
(alternate J de
la Fargue) 4 4
---------------------- --------- ----------
Mr J Chigwedere 4 3
---------------------- --------- ----------
Mr F Zimuto 4 4
---------------------- --------- ----------
Mr F S Mangozho 4 4
---------------------- --------- ----------
Mr L Chinyamutangira 4 4
---------------------- --------- ----------
3.1.5 Loans Review Committee
Name Meetings Meeting
held attended
--------------------- --------- ----------
Mr A M T Mutsonziwa 4 3
--------------------- --------- ----------
Ms L Majonga* 4 2
--------------------- --------- ----------
Mr B Ndachena 4 4
--------------------- --------- ----------
*Ms. L. Majonga became a member of the Committee with effect
from 7 August 2012 and attended the two meetings left in the year
subsequent to her appointment.
3.1.6 Human Resources, Remuneration and Nominations Committee
Name Meetings Meetings
held attended
--------------------- --------- ----------
Mr A M T Mutsonziwa 4 3
--------------------- --------- ----------
Mr T N Mundawarara 4 4
--------------------- --------- ----------
Mr J Chenevix -
Trench 4 3
--------------------- --------- ----------
Mr J A Mushore 4 4
--------------------- --------- ----------
Mr B Madzivire 4 4
--------------------- --------- ----------
Mr B P Washaya 4 4
--------------------- --------- ----------
Mr F Zimuto 4 4
--------------------- --------- ----------
3.1.7 Credit Committee
Name Meetings Meetings
held attended
---------------------- --------- ----------
Mr T N Mundawarara 5 4
---------------------- --------- ----------
Mr J de la Fargue 5 5
---------------------- --------- ----------
Mr J Mushore 5 3
---------------------- --------- ----------
Mr F Zimuto 5 5
---------------------- --------- ----------
Mr B P Washaya 5 5
---------------------- --------- ----------
Mr L Chinyamutangira 5 5
---------------------- --------- ----------
NMB BANK LIMITED
4. RISK MANAGEMENT
In the ordinary course of business the Bank manages risks of all
forms. The risks are identified and monitored
through various channels and mechanisms.
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 Bank'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; and
-- Providing advice, guidance and specialist skills to business
units to promote best practice throughout the Bank 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
make 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.
4.4 Operations 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.
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 readily 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 all regulatory and statutory requirements.
4.7 Reputation 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 minimization of losses
arising from risky exposures.
4.9 External credit ratings
The external credit ratings were by Global Credit Rating (GCR),
a credit rating agency accredited with the Reserve Bank of
Zimbabwe.
Security class 2012
Long term BBB-
5. REGULATORY COMPLIANCE
There were no instances of regulatory non-compliance in the
period under review. The Group 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 the regulatory reserves and portfolio provisions
are limited to 1.25% of total risk weighted assets.
The Bank's regulatory capital position at 31 December 2011 was
as follows:
31 December 31 December
---------------------------------------------------- ---------------- ---------------
2012 2011
---------------------------------------------------- ---------------- ---------------
US$ US$
---------------------------------------------------- ---------------- ---------------
Share capital 16 502 16 501
---------------------------------------------------- ---------------- ---------------
Share premium 15 577 932 13 690 931
---------------------------------------------------- ---------------- ---------------
Retained earnings 12 487 547 6 116 397
---------------------------------------------------- ---------------- ---------------
Fair value gain on investment property (2 411 775) -
---------------------------------------------------- ---------------- ---------------
-------------- -------------
---------------------------------------------------- ---------------- ---------------
25 670 206 19 823829
---------------------------------------------------- ---------------- ---------------
Less: capital allocated for market and operational
risk (1 198 520) (571 954)
---------------------------------------------------- ---------------- ---------------
Credit to insiders (2 231 128) (892 862)
---------------------------------------------------- ---------------- ---------------
--------------- -------------
---------------------------------------------------- ---------------- ---------------
Tier 1 capital 22 240 558 18 359 013
---------------------------------------------------- ---------------- ---------------
Tier 2 capital (subject to limit as per
Banking Regulations) 4 819 193 1 023 431
---------------------------------------------------- ---------------- ---------------
Revaluation reserve 2 411 775 -
---------------------------------------------------- ---------------- ---------------
Subordinated debt - -
---------------------------------------------------- ---------------- ---------------
Regulatory reserve (limited to 1.25% of
risk weighted assets) 2 301 683 1 023 431
---------------------------------------------------- ---------------- ---------------
Portfolio provisions (limited to 1.25% of
risk weighted assets) 105 735 -
---------------------------------------------------- ---------------- ---------------
-------------- --------------
---------------------------------------------------- ---------------- ---------------
Total Tier 1 & 2 capital 27 059 751 19 382 444
---------------------------------------------------- ---------------- ---------------
Tier 3 capital (sum of market and operational
risk capital) 1 198 520 571 954
---------------------------------------------------- ---------------- ---------------
--------------- -------------
---------------------------------------------------- ---------------- ---------------
Total capital base 28 258 271 19 954 398
---------------------------------------------------- ---------------- ---------------
========= =========
---------------------------------------------------- ---------------- ---------------
Total risk weighted assets 182 361 802 138 868 906
---------------------------------------------------- ---------------- ---------------
========= =========
---------------------------------------------------- ---------------- ---------------
Tier 1 ratio 12.20% 13.22%
---------------------------------------------------- ---------------- ---------------
Tier 3 ratio 2.64% 0.74%
---------------------------------------------------- ---------------- ---------------
Tier 3 ratio 0.66% 0.41%
---------------------------------------------------- ---------------- ---------------
Total capital adequacy ratio 15.50% 14.37%
---------------------------------------------------- ---------------- ---------------
RBZ minimum required 12.00% 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 (cont'd)
The following table presents income and profit and certain asset
and liability information regarding the bank's operating segments
and service units:
For the year ended 31 December 2012
Retail Corporate International
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
Banking Banking Treasury Banking Unallocated Total
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
US$ US$ US$ US$ US$ US$
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
Income
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
17 420
Third party 843 19 816 731 2 806 291 1 441 235 3 310 655 44 795 756
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
Impairment losses on loans
and advances (631 814) (3 353 248) - - - (3 985 062)
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
--------- ---------- --------- --------- ----------- ----------
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
16 789
Net operating income 029 16 463 483 2 806 291 1 441 235 3 310 665 40 810 694
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
--------- ---------- ---------- --------- ----------- ----------
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
Results
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
Interest and similar income 6 178 887 19 431 337 1 695 601 - - 27 305 825
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
(1 921
Interest and similar expense 638) (7 339 485) (792 466) - - (10 053 589)
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
--------- ---------- ---------- --------- ----------- ----------
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
Net interest income 4 257 249 12 091 852 903 135 - - 17 252 236
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
--------- ---------- ---------- --------- ----------- ----------
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
11 136
Fee and commission income 085 450 746 - 1 429 285 - 13 016 115
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
Depreciation of property and
equipment 615 387 127 980 20 727 27 064 639 798 1 430 956
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
Segment profit/ (loss) 4 885 799 6 665 804 2 431 151 416 494 (4 297 523) 10 101 725
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
Income tax expense - - - - (2 452 323) (2 452 323)
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
--------- ---------- --------- --------- ----------- ----------
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
Profit/(loss) for the year 4 885 799 6 665 804 2 431 151 416 494 (6 749 846) 7 649 402
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
============ ========== ========== ======== ============ ==========
------------------------------ ------------- ------------ ----------- -------------- ------------- -------------
NMB BANK LIMITED
7. SEGMENT INFORMATION (cont'd)
For the year ended 31 December 2012
Retail Corporate International
------------------------------- -------- ------------ ----------- -------------- ------------ ------------
Banking Banking Treasury Banking Unallocated Total
------------------------------- -------- ------------ ----------- -------------- ------------ ------------
US$ US$ US$ US$ US$ US$
------------------------------- -------- ------------ ----------- -------------- ------------ ------------
Assets and Liabilities
------------------------------- -------- ------------ ----------- -------------- ------------ ------------
Capital expenditure 974 520 107 131 450 160 829 1 501 749 2 744 679
------------------------------- -------- ------------ ----------- -------------- ------------ ------------
41 315
Total assets 622 116 785 291 48 849 157 160 829 18 982 629 226 093 528
------------------------------- -------- ------------ ----------- -------------- ------------ ------------
75 893
Total liabilities and capital 282 76 327 413 40 146 035 - 33 726 797 226 093 528
------------------------------- -------- ------------ ----------- -------------- ------------ ------------
NMB BANK LIMITED
7. SEGMENT INFORMATION (cont'd)
The following table presents income and profit and certain asset
and liability information regarding the bank's operating segments
and service units:
For the year ended 31 December 2011
Retail Corporate International
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
Banking Banking Treasury Banking Unallocated Total
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
US$ US$ US$ US$ US$ US$
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
Income
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
12 122
Third party 517 17 608 301 2 521 784 1 190 962 (31 175) 33 412 389
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
Impairment losses on loans
and advances (284 178) (2 011 933) - - - (2 296 111)
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
--------- ---------- ---------- -------- ----------- ----------
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
11 838
Net operating income 339 15 596 368 2 521 784 1 190 962 (31 175) 31 116 278
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
--------- ---------- ---------- --------- ----------- ----------
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
Results
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
Interest and similar income 6 344 950 14 772 128 1 232 055 - - 22 349 133
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
(1 496
Interest and similar expense 919) (6 078 341) (682 623) - - (8 257 883)
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
--------- ---------- ---------- --------- ----------- ----------
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
Net interest income 4 848 031 8 693 787 549 432 - - 14 091 250
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
--------- ---------- ---------- --------- ----------- ----------
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
Fee and commission income 5 679 254 3 003 300 - 1 176 266 (54 570) 9 804 250
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
Depreciation of property and
equipment 323 115 63 296 7 075 11 582 351 123 756 191
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
Segment profit/ (loss) 3 141 886 7 926 550 1 224 334 340 776 (6 779 421) 5 854 125
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
Income tax expense - - - - (1 574 148) (1 574 148)
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
--------- ---------- ---------- --------- ----------- ----------
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
Profit/(loss) for the year 3 141 886 7 926 550 1 224 334 340 776 (8 353 569) 4 279 977
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
========== ========== ========== ======== ============ ==========
------------------------------ ----------- ------------ ----------- -------------- ------------- ------------
NMB BANK LIMITED
7. SEGMENT INFORMATION (cont'd)
For the year ended 31 December 2011
Retail Corporate International
------------------------------- ---------- ----------- ----------- -------------- ------------ ------------
Banking Banking Treasury Banking Unallocated Total
------------------------------- ---------- ----------- ----------- -------------- ------------ ------------
US$ US$ US$ US$ US$ US$
------------------------------- ---------- ----------- ----------- -------------- ------------ ------------
Assets and Liabilities
------------------------------- ---------- ----------- ----------- -------------- ------------ ------------
Capital expenditure 1 618 558 157 634 78 298 49 038 1 664 485 3 568 013
------------------------------- ---------- ----------- ----------- -------------- ------------ ------------
37 333
Total assets 931 99 879 097 14 815 783 49 038 12 712 162 164 790 011
------------------------------- ---------- ----------- ----------- -------------- ------------ ------------
23 340
Total liabilities and capital 594 51 995 615 63 902 803 - 25 550 999 164 790 011
------------------------------- ---------- ----------- ----------- -------------- ------------ ------------
8. GEOGRAPHICAL INFORMATION
The Group operates in one geographical market, Zimbabwe.
NMBZ HOLDINGS LIMITED
NOTICE TO MEMBERS
Notice is hereby given that the 18(th) Annual General Meeting of
Members of NMBZ Holdings Limited will be held at the Registered
Office of the Company at 4(th) Floor Unity Court, Cnr 1(st)
Street/Kwame Nkrumah Avenue, Harare on Tuesday 18 June 2013 at 10:
00 hours for the following purposes:
ORDINARY BUSINESS
1. To receive and adopt the Financial Statements for the year
ended 31 December 2012, together with the reports of the Directors
and Auditors thereon.
2. To appoint Directors. In accordance with the Articles of
Association, Mr B Ndachena, Mr J Chenevix - Trench and Mr J de la
Fargue retire by rotation. Being eligible, all the retiring
directors offer themselves for re-election.
3. To appoint Auditors for 2013.
4. To approve Messrs KPMG's remuneration for the year ended 31 December 2012.
Note: A member of the company entitled to attend and vote at
this meeting is entitled to appoint a proxy to attend, speak and on
a poll, vote in his stead. A proxy need not be a member of the
company. Proxy forms should be forwarded to reach the office of the
transfer secretaries at least 48 hours before the commencement of
the meeting.
By Order of the Board
V Mutandwa
Company Secretary
28 March 2013
Registered Offices
4(th) 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 882068
Website: http://www.nmbz.co.zw
Email: enquiries@nmbz.co.zw
Transfer Secretaries
In Zimbabwe In UK
First Transfer Secretaries Computershare Investor Services
PLC
1 Armagh Avenue The Pavilions
36 St Andrew Square Bridgewater Road
(Off Enterprise Road) Bristol
Eastlea BS99 9ZZ
P O Box 11 United Kingdom
Harare
Zimbabwe
This information is provided by RNS
The company news service from the London Stock Exchange
END
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