NMB Bank has set a year-end target of 15 percent on its nonperforming loans ratio from 20 percent in June on conservative lending, managing director Benefit Washaya said on Monday.
Washaya told shareholders and analysts attending an annual general meeting that the performance of the group to August 31 has been below budget due to a dip in interest margins and slowdown in economic activity that has resulted in liquidity constraints.
The meeting was one of the most protracted AGMs in recent times after shareholders opted for a poll on resolutions which saw incumbent chairman Tendai Mundawarara opting to step down at the end of the year despite being re-elected.
Group chief executive James Mushore was conspicuous by his absence although no formal communication was given.
“On the lending front, we will continue to be conservative with advances being only made to customers with a high credit rating,” Washaya said.
“We have continued to focus on the bank’s nonperforming loans and we are targeting an NPL ratio of below 15 percent by December 31 2014. We are in the process of implementing a credit management system which we expect to go live by the end of this month.”
Washaya said the introduction of mortgage finance was also expected to improve the bank’s loan book going forward.
He said the bank would also roll out new branches to improve incomes adding that plans were on course to ensure that the bank has a Tier 1 status with a minimum capital requirement of $100 million by 2020.
In the half year to June 2014, the group recorded an attributable profit of $1,4 million from an attributable loss of $3,4 million for the year ending December 31, 2013.Advertisement