21 January 2018
   
How ED pulled wool over Mugabe’s eyes
UN: 5 dead in DRC anti-Kabila demo
US wants Africa to shun North Korea
'Zimbabweans mentally ill after Bob horror'
Chamisa, Speaker row over G40 MP purges
ZRP reverses decision to fire top cops
Bennett: Clues sought in chopper crash
EU, UN should observe elections: Pres
MORE NEWS
Buyanga responds to investment call
ZTA targets domestic tourism
MORE BUSINESS
Delight as ZBC 'Iron Lady' suspended
Sulu arrested over $4,000 child support
MORE SHOWBIZ
Cricket: ICC clears Zimbabwe's Vitori
Zidane fuels Neymar to Real talk
MORE SPORTS
Zhuwao: kleptocracy and EDiots in Davos
Elections: Not a moment to be lost
MORE OPINION
 
Mnangagwa off to Davos empty handed
Economy: the need for a paradigm shift
MORE COLUMNISTS
 
 
NMBZ Holdings in profit warning
07/02/2014 00:00:00
by The Source
 
 
RELATED STORIES
Interbank market resumes this month
Credit risk remains key challenge, RBZ
Rebranded CABS gets $45m for fresh loans
Banking sector generally stable, RBZ
Concern over State owned bank’s viability
Five banks struggling, bad loans high: RBZ
RBZ rules out bank shareholding changes
Zimbabweans prefer foreign banks, survey
Institutions limited to 25pc of banks
Banks up mortgage lending by 29pc
Hard-up local banks seek foreign partners
Banks want interest rates autonomy
Chinamasa to meet foreign banks heads
Increased lending boost Barclays profits
Non-performing loans reach 25pc
Barclays chief relaxed about ownership

FINANCIAL services group, NMBZ Holdings has warned of a loss for the full year to December 2013, citing “an acceleration in impairments on loans and advances” at its flagship commercial banking unit.

“The board has reviewed the banking subsidiary’s loan book and has consequently increased the impairment losses on loans and advances,” the group said in a profit warning on Friday.

“This will have a material impact on the results for the year ended December 31 2013 and the group will record an attributable loss for the period.”

The market seemed to ignore the warning, with the share price remaining stable at 6.50 cents with no trades, although sellers offered it at seven cents.

NMB’s warning follows an announcement by the Reserve Bank of Zimbabwe barring banks from extending insider loans without approval from the central bank, a move meant to contain bad loans.

A recent survey by an advisory and brokerage firm showed that local banks had one of the highest non-performing loan ratios in sub-Saharan Africa, with bad debts at $500 million, constituting 13.8 percent of the $3.67 billion loan book in the first half of 2013 due to an underperforming economy.

“Notwithstanding the negative impact of the above-mentioned impairment losses on loans and advances, the capital position of the bank remains above the regulatory minimum. In addition, the capital adequacy and liquidity ratios for the banking subsidiary remain above regulatory minimums,” NMB said.

Last November, the Reserve Bank placed seven financial institutions under corrective order amid concerns that the banks were facing solvency problems triggered by bad loan books.



Advertisement


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker