TIDMNMB
RNS Number : 2954A
NMBZ Holdings Ld
29 March 2012
NMBZ HOLDINGS LIMITED
Holding company of
NMB BANK LIMITED (Registered Commercial Bank)
AUDITED RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2011
HIGHLIGHTS
31 December 31 December
--------------------------- ------------ ------------
2011 2010
--------------------------- ------------ ------------
Attributable profit (US$) 4 538 456 692 234
--------------------------- ------------ ------------
Basic earnings per share
(US cents) 0.16 0.03
--------------------------- ------------ ------------
Total deposits (US$) 139 226 144 79 849 387
--------------------------- ------------ ------------
Total equity (US$) 23 371 581 18 833 125
--------------------------- ------------ ------------
Enquiries:
NMBZ HOLDINGS LIMITED Tel: +263-4-759 651/9
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
NMBZ HOLDINGS LIMITED
CHAIRMAN'S STATEMENT
INTRODUCTION
The country continued to experience a relatively stable economic
environment during the period under review. A combination of the
relative political stability and continued international
re-engagement resulted in considerable growth in business activity
in the country. The financial sector experienced intermittent
liquidity constraints in the period under review and this
constrained availability of credit to industry and commerce.
GROUP RESULTS
Compliance with International Financial Reporting Standards
The consolidated financial statements of 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$6 193 653 during the period
under review and this gave rise to an attributable profit of US$4
538 456. Net interest income was US$11 901 512 for the period.
Non-interest income amounted to US$12 164 691 and this was mainly
as a result of commissions and fee income (US$11 958 029).
Operating expenses amounted to US$16 979 741 and these were 11%
up on prior year and were driven largely by administration and
staff related expenditure.
Impairment losses on loans and advances amounted to US$2 296 111
for the current period from a prior year of US$971 803. This is
commensurate with the loans and advances which amounted to US$97
138 048 at 31 December 2011 compared to US$57 913 589 as at 31
December 2010.
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 63% from US$102 839 504 as at
31 December 2010 to US$167 287 333 as at 31 December 2011. The
assets comprised mainly loans, advances and other accounts (US$99
802 065), financial assets at fair value through profit and loss
(US$24 585 255), cash and short term funds (US$32 265 953),
investment properties (US$2 510 000) and property and equipment
(US$6 801 982). Gross loans and advances increased by 68% from
US$57 913 589 as at 31 December 2010 to US$97 138 048 as at 31
December 2011. The Bank's liquidity ratio closed the period at
35.25% and this was above the statutory requirement of 25% at 31
December 2011.
Capital
The banking subsidiary's capital adequacy ratio at 31 December
2011 calculated in accordance with the guidelines of the Reserve
Bank of Zimbabwe (RBZ) was 14.37% (31 December 2010 - 17.49%). The
minimum required by the RBZ is 10%.
The Group's equity increased by 24% from US$18 833 125 as at 31
December 2010 to US$ 23 371 581 as at 31 December 2011 as a result
of growth in retained earnings.
NMBZ HOLDINGS LIMITED
CORPORATE SOCIAL INVESTMENTS
The Group is committed to improving the well-being of the
communities where we work and live through our charitable giving.
In 2011, the Group contributed towards the support of charities,
community fundraisers and non-profit organizations that have a
positive influence on society. During the year we supported a
diverse range of causes and we dedicated a large portion of our
community contributions towards areas of education, health and
social services, the environment and the arts.
CORPORATE DEVELOPMENTS
In line with our strategic thrust to offer service excellence,
the Bank successfully upgraded its core banking system to the
latest version of T24. In addition to enhancing the efficiency of
transaction processing, the new platform provides a solid base for
a seamless integration to other modern service delivery channels
that bring convenience to our high net worth individual and
business customers. Going forward, the Bank is looking at enhancing
existing electronic delivery channels through upgrades as well as
acquiring new channels in an endeavour to bring more convenience to
our valued clients.
A new branch was opened at the upmarket PaSangano in the
Avondale (Harare) area during the last quarter of 2011. The opening
of the branch is in line with the Bank's strategic intent to be
present in key markets and it brings convenience to existing and
potential clients in the Avondale and surrounding areas.
OUTLOOK AND STRATEGY
The Group has continued with its quest to access more lines of
credit in order to underwrite more lending business for our
clients. The Group has also continued to explore growth
opportunities in the market.
DIRECTORATE
During the year Mr Francis Zimuto was appointed the Deputy Group
Chief Executive Officer. There were no other changes to the
composition of the Board.
APPRECIATION
I would like to express my appreciation to our valued clients,
shareholders and Regulatory Authorities for their continued support
in the period under review. I would also like to thank my fellow
Board members, management and staff for their continued commitment
and dedication which has underpinned the achievement of these
results.
T N MUNDAWARARA
CHAIRMAN
20 March 2012
NMBZ HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2011
31 December 31 December
------------------------------ ----- ---------------- ----------------
Note 2011 2010
------------------------------ ----- ---------------- ----------------
US$ US$
------------------------------ ----- ---------------- ----------------
Interest income 4 20 158 766 10 014 636
------------------------------ ----- ---------------- ----------------
Interest expense (8 257 254) (3 143 168)
------------------------------ ----- ---------------- ----------------
-------------- --------------
------------------------------ ----- ---------------- ----------------
Net interest income 11 901 512 6 871 468
------------------------------ ----- ---------------- ----------------
Net foreign exchange
gains 1 289 729 1 055 307
------------------------------ ----- ---------------- ----------------
Share of profit of associate 113 573 (21 444)
------------------------------ ----- ---------------- ----------------
Non-interest income 5 12 164 691 9 374 796
------------------------------ ----- ---------------- ----------------
-------------- -------------
------------------------------ ----- ---------------- ----------------
Net operating income 25 469 505 17 280 127
------------------------------ ----- ---------------- ----------------
Operating expenditure 6 (16 979 741) (15 365 768)
------------------------------ ----- ---------------- ----------------
Impairment losses on
loans and advances (2 296 111) (971 803)
------------------------------ ----- ---------------- ----------------
--------------- ------------
------------------------------ ----- ---------------- ----------------
Profit for the period 6 193 653 942 556
------------------------------ ----- ---------------- ----------------
Taxation 7 (1 655 197) (250 322)
------------------------------ ----- ---------------- ----------------
------------- ------------
------------------------------ ----- ---------------- ----------------
Profit for the period 4 538 456 692 234
------------------------------ ----- ---------------- ----------------
Other comprehensive
income, net of tax - -
------------------------------ ----- ---------------- ----------------
------------ ------------
------------------------------ ----- ---------------- ----------------
Total comprehensive
income
the period 4 538 456 692 234
------------------------------ ----- ---------------- ----------------
======== =======
------------------------------ ----- ---------------- ----------------
Attributable to:
------------------------------ ----- ---------------- ----------------
Owners of the parent 4 538 456 692 234
------------------------------ ----- ---------------- ----------------
Non - controlling interest - -
------------------------------ ----- ---------------- ----------------
---------- -----------
------------------------------ ----- ---------------- ----------------
4 538 456 692 234
------------------------------ ----- ---------------- ----------------
======= =======
------------------------------ ----- ---------------- ----------------
Earnings per share (US
cents)
------------------------------ ----- ---------------- ----------------
- Basic 9.3 0.16 0.03
------------------------------ ----- ---------------- ----------------
- Diluted headline 9.3 0.16 0.03
------------------------------ ----- ---------------- ----------------
NMBZ HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2011
31 December 31 December
------------------------------------ ------ --------------- ---------------
2011 2010
------------------------------------ ------ --------------- ---------------
EQUITY Note US$ US$
------------------------------------ ------ --------------- ---------------
Share capital 10 78 598 78 598
------------------------------------ ------ --------------- ---------------
Capital reserves 16 806 650 16 666 633
------------------------------------ ------ --------------- ---------------
Retained earnings 6 486 333 2 087 894
------------------------------------ ------ --------------- ---------------
------------- -------------
------------------------------------ ------ --------------- ---------------
Total equity 23 371 581 18 833 125
------------------------------------ ------ --------------- ---------------
LIABILITIES
------------------------------------ ------ --------------- ---------------
Deposits and other accounts 11 102 608 918 65 979 335
------------------------------------ ------ --------------- ---------------
Financial liabilities at fair
value
through profit and loss 12 40 148 860 17 177 109
------------------------------------ ------ --------------- ---------------
Current tax liabilities 1 157 974 641 969
------------------------------------ ------ --------------- ---------------
Deferred tax liabilities - 207 966
------------------------------------ ------ --------------- ---------------
-------------- --------------
------------------------------------ ------ --------------- ---------------
Total liabilities 143 915 752 84 006 379
------------------------------------ ------ --------------- ---------------
-------------- --------------
------------------------------------ ------ --------------- ---------------
Total equity and liabilities 167 287 333 102 839 504
------------------------------------ ------ --------------- ---------------
========= ==========
------------------------------------ ------ --------------- ---------------
ASSETS
------------------------------------ ------ --------------- ---------------
Cash and cash equivalents 13 32 265 953 18 346 939
------------------------------------ ------ --------------- ---------------
Financial assets at fair value
through
profit and loss 12.3 24 585 255 17 299 592
------------------------------------ ------ --------------- ---------------
Loans, advances and other accounts 14 99 802 065 60 315 397
------------------------------------ ------ --------------- ---------------
Quoted and other investments 309 028 336 127
------------------------------------ ------ --------------- ---------------
Investment in associate 18 591 667 228 556
------------------------------------ ------ --------------- ---------------
Investment properties 2 510 000 2 615 000
------------------------------------ ------ --------------- ---------------
Property and equipment 15 6 801 982 3 697 893
------------------------------------ ------ --------------- ---------------
Deferred tax assets 421 383 -
------------------------------------ ------ --------------- ---------------
-------------- --------------
------------------------------------ ------ --------------- ---------------
Total assets 167 287 333 102 839 504
------------------------------------ ------ --------------- ---------------
========= =========
------------------------------------ ------ --------------- ---------------
NMBZ HOLDINGS LIMTED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2011
Capital Reserve
---------------- ----------------------------------------------------------------------------------------------------------------------- ----------------- --------------
Share Non-
---------------- ------------------- ----------------- --------------- ---------------------- ----------------- ------------------- ----------------- --------------
Share Share Treasury Option Regulatory Distributable Retained
---------------- ------------------- ----------------- --------------- ---------------------- ----------------- ------------------- ----------------- --------------
Capital Premium Shares Reserve Reserve Reserve Profit Total
---------------- ------------------- ----------------- --------------- ---------------------- ----------------- ------------------- ----------------- --------------
US$ US$ US$ US$ US$ US$ US$ US$
---------------- ------------------- ----------------- --------------- ---------------------- ----------------- ------------------- ----------------- --------------
Deemed balances
at 31 December
2009 - 34 822 (8 225) 61 212 274 904 6 201 909 2 003 383 8 568 005
---------------- ------------------- ----------------- --------------- ---------------------- ----------------- ------------------- ----------------- --------------
Total
comprehensive
income
for the year - - - - - - 692 234 692 234
---------------- ------------------- ----------------- --------------- ---------------------- ----------------- ------------------- ----------------- --------------
Impairment
allowance for
loans and
advances - - - - 608 510 - (608 510) -
---------------- ------------------- ----------------- --------------- ---------------------- ----------------- ------------------- ----------------- --------------
Redenomination
of share
capital 46 147 6 155 762 - - - (6 201 909) - -
---------------- ------------------- ----------------- --------------- ---------------------- ----------------- ------------------- ----------------- --------------
Shares issued -
rights issue 32 364 9 531 510 - - - - - 9 563 874
---------------- ------------------- ----------------- --------------- ---------------------- ----------------- ------------------- ----------------- --------------
Shares issued -
share options
exercised 87 15 454 - (15 541) - - - -
---------------- ------------------- ----------------- --------------- ---------------------- ----------------- ------------------- ----------------- --------------
Disposal
proceeds of
own
equity
Instruments
(note 10.3) - - 9 012 - - - - 9 012
---------------- ------------------- ----------------- --------------- ---------------------- ----------------- ------------------- ----------------- --------------
Surplus on
disposal of
own
equity
Instruments - - (787) - - - 787 -
---------------- ------------------- ----------------- --------------- ---------------------- ----------------- ------------------- ----------------- --------------
--------- ------------ --------- ----------- ----------- ---------- ------------ ------------
---------------- ------------------- ----------------- --------------- ---------------------- ----------------- ------------------- ----------------- --------------
Balances at 31
December 18 833
2010 78 598 15 737 548 - 45 671 883 414 2 087 894 125
---------------- ------------------- ----------------- --------------- ---------------------- ----------------- ------------------- ----------------- --------------
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 23 371
2011 78 598 15 737 548 - 45 671 1 023 431 - 6 486 333 581
---------------- ------------------- ----------------- --------------- ---------------------- ----------------- ------------------- ----------------- --------------
===== ======== ====== ======= ======= ======= ======= =========
---------------- ------------------- ----------------- --------------- ---------------------- ----------------- ------------------- ----------------- --------------
NMBZ HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2011
31 December 31 December
------------------------------------------------ ------------------ -----------------
2011 2010
------------------------------------------------ ------------------ -----------------
US$ US$
------------------------------------------------ ------------------ -----------------
CASH FLOWS FROM OPERATING ACTIVITIES
------------------------------------------------ ------------------ -----------------
Profit before taxation 6 193 653 942 556
------------------------------------------------ ------------------ -----------------
Non-cash items:
------------------------------------------------ ------------------ -----------------
-Depreciation 756 191 297 532
------------------------------------------------ ------------------ -----------------
-Impairment losses on loans and advances 2 296 111 971 803
------------------------------------------------ ------------------ -----------------
-Investment properties fair value adjustment 40 000 784 600
------------------------------------------------ ------------------ -----------------
-Quoted and other investments fair value
adjustment (5 689) (94 139)
------------------------------------------------ ------------------ -----------------
-Profit on disposal of quoted and other
investment (27 173) (13 232)
------------------------------------------------ ------------------ -----------------
-Loss/(profit) on disposal of property
and equipment 18 046 (64 527)
------------------------------------------------ ------------------ -----------------
-Impairment(gain)/ loss on land and buildings (250 000) 298 811
------------------------------------------------ ------------------ -----------------
-Share of associate (profit)/ loss (113 573) 21 444
------------------------------------------------ ------------------ -----------------
------------ -------------
------------------------------------------------ ------------------ -----------------
Operating cash flows before changes in
operating assets and liabilities 8 907 566 3 144 848
------------------------------------------------ ------------------ -----------------
Changes in operating assets and liabilities
------------------------------------------------ ------------------ -----------------
Financial liabilities at fair value through
profit and loss 22 971 751 10 732 177
------------------------------------------------ ------------------ -----------------
Deposits and other accounts 36 629 583 42 329 610
------------------------------------------------ ------------------ -----------------
Loans, advances and other accounts (41 782 779) (48 283 101)
------------------------------------------------ ------------------ -----------------
Financial assets at fair value through
profit and loss (7 285 663) (10 164 569)
------------------------------------------------ ------------------ -----------------
-------------- ---------------
------------------------------------------------ ------------------ -----------------
Net cash inflow/(outflow) from operating
activities 19 440 458 (2 241 035)
------------------------------------------------ ------------------ -----------------
-------------- ---------------
------------------------------------------------ ------------------ -----------------
Taxation
------------------------------------------------ ------------------ -----------------
Capital gains tax paid (2 998) -
------------------------------------------------ ------------------ -----------------
Corporate tax paid (1 765 544) (445 657)
------------------------------------------------ ------------------ -----------------
----------------- -------------
------------------------------------------------ ------------------ -----------------
Net cash inflow/(outflow) from operating
activities 17 671 916 (2 686 692)
------------------------------------------------ ------------------ -----------------
---------------- ----------------
------------------------------------------------ ------------------ -----------------
CASH FLOWS FROM INVESTING ACTIVITIES
------------------------------------------------ ------------------ -----------------
Purchases of property and equipment (3 568 013) (732 183)
------------------------------------------------ ------------------ -----------------
Proceeds on disposal of property and equipment 4 688 84 860
------------------------------------------------ ------------------ -----------------
Improvements to investment property - (180 000)
------------------------------------------------ ------------------ -----------------
Increase in investment in associate (249 538) (250 000)
------------------------------------------------ ------------------ -----------------
Proceeds from disposal of quoted and other
investments 59 961 343 899
------------------------------------------------ ------------------ -----------------
------------ ------------
------------------------------------------------ ------------------ -----------------
Net cash outflow from investing activities (3 752 902) (733 424)
------------------------------------------------ ------------------ -----------------
--------------- -------------
------------------------------------------------ ------------------ -----------------
Net cash inflow/(outflow) before financing
activities 13 919 014 (3 420 116)
------------------------------------------------ ------------------ -----------------
--------------- ---------------
------------------------------------------------ ------------------ -----------------
CASH FLOWS FROM FINANCING ACTIVITIES
------------------------------------------------ ------------------ -----------------
Gross proceeds from right issue - 10 287 021
------------------------------------------------ ------------------ -----------------
Share issue expenses - (723 147)
------------------------------------------------ ------------------ -----------------
------------- --------------
------------------------------------------------ ------------------ -----------------
Net cash inflow from financing activities - 9 563 874
------------------------------------------------ ------------------ -----------------
-------------- ---------------
------------------------------------------------ ------------------ -----------------
Net increase in cash and cash equivalents 13 919 014 6 143 758
------------------------------------------------ ------------------ -----------------
Cash and cash equivalents at the beginning
of the period 18 346 939 12 203 181
------------------------------------------------ ------------------ -----------------
-------------- ---------------
------------------------------------------------ ------------------ -----------------
Cash and cash equivalents at the end of
the period (note 13) 32 265 953 18 346 939
------------------------------------------------ ------------------ -----------------
======== ========
------------------------------------------------ ------------------ -----------------
NMBZ HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2011
1. REPORTING ENTITY
The 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 financial statements have been prepared in compliance with
the Companies Act (Chapter 24:03) and the Banking Act (Chapter
24:20).
The financial statements were approved by the Board of Directors
on 20 March 2012.
2.1 Basis of preparation
The 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 financial statements are reported in United States of America
dollars and rounded to the nearest dollar.
2.2 Comparative financial information
The financial statements comprise a statement of financial
position, a statement of comprehensive income, a statement of
changes in equity and a statement of cash flows. The comparative
statement of comprehensive income and the comparative statements of
changes in equity and cash flows are for twelve months.
2.3 Use of estimates and judgements
The preparation of financial statements 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:
2.3.1 Deferred tax liability
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.
2.3.2 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.
2.3.3 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.
2.3.4 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.
2.3.5 Impairment losses on loans and advances
The Bank 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 Bank 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 below.
2.3.6 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 financial statements on a going concern basis is still
appropriate.
2.3.7 RBZ Statutory reserves
The statutory reserves are stated at cost as IFRS principles of
amortised cost could not be applied due to the significant
uncertainty as to the expected receipt date as at 31 December
2011.
Subsequent to year end, the Reserve Bank of Zimbabwe announced
that these balances would be converted to tradable interest bearing
instruments (refer to note 20).
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. There is no
reclassification into or out of this category as per IAS 39.
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 are 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
--------------------------------- ------------- -------------
2011 2010
--------------------------------- ------------- -------------
US$ US$
--------------------------------- ------------- -------------
Loans and advances to banks 1 097 573 297 752
--------------------------------- ------------- -------------
Loans and advances to customers 14 054 625 6 721 892
--------------------------------- ------------- -------------
Investment securities 4 811 300 2 990 349
--------------------------------- ------------- -------------
Other 195 268 4 643
--------------------------------- ------------- -------------
------------ ------------
--------------------------------- ------------- -------------
20 158 766 10 014 636
--------------------------------- ------------- -------------
======== ========
--------------------------------- ------------- -------------
5. non-interest income
2011 2010
--------------------------------------------- ------------- -------------
US$ US$
--------------------------------------------- ------------- -------------
Net gains from quoted and other investments
fair value
adjustments 5 689 94 139
--------------------------------------------- ------------- -------------
Net commission and fee income 11 958 029 9 691 069
--------------------------------------------- ------------- -------------
Fair value adjustment on investment
properties (40 000) (784 600)
--------------------------------------------- ------------- -------------
Profit on disposal of quoted and other
investments 27 173 13 232
--------------------------------------------- ------------- -------------
Fair value adjustment on financial
instruments 180 118 54 404
--------------------------------------------- ------------- -------------
(Loss)/profit on disposal of investment
property (18 046) 64 527
--------------------------------------------- ------------- -------------
Other net operating income 51 728 242 025
--------------------------------------------- ------------- -------------
------------ ------------
--------------------------------------------- ------------- -------------
12 164 691 9 374 796
--------------------------------------------- ------------- -------------
======== ========
--------------------------------------------- ------------- -------------
6. Operating EXPENDITURE
31 December 31 December
---------------------------------------- ------------- --------------
2011 2010
---------------------------------------- ------------- --------------
US$ US$
---------------------------------------- ------------- --------------
The operating profit is after charging
the following:-
---------------------------------------- ------------- --------------
Administration costs 8 599 131 5 924 296
---------------------------------------- ------------- --------------
Audit fees 151 515 153 864
---------------------------------------- ------------- --------------
Staff costs - salaries, allowances
and related costs 7 722 904 5 601 653
---------------------------------------- ------------- --------------
-retrenchment - 3 089 612
---------------------------------------- ------------- --------------
Depreciation 756 191 297 532
---------------------------------------- ------------- --------------
Impairment (gain)/ loss on land and
buildings (250 000) 298 811
---------------------------------------- ------------- --------------
------------ -------------
---------------------------------------- ------------- --------------
16 979 741 15 365 768
---------------------------------------- ------------- --------------
======== ========
---------------------------------------- ------------- --------------
7. taxation
31 December 31 December
------------------------------------- ------------ ------------
2011 2010
------------------------------------- ------------ ------------
Income tax expense US$ US$
------------------------------------- ------------ ------------
Current tax 2 215 095 765 499
------------------------------------- ------------ ------------
Aids levy 66 453 22 965
------------------------------------- ------------ ------------
Deferred tax (629 349) (514 224)
------------------------------------- ------------ ------------
Capital gains tax 2 998 -
------------------------------------- ------------ ------------
Tax adjustment due to change in tax
rates - (23 918)
------------------------------------- ------------ ------------
----------- ----------
------------------------------------- ------------ ------------
1 655 197 250 322
------------------------------------- ------------ ------------
======== =======
------------------------------------- ------------ ------------
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.
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.
9.1 Earnings
31 December 31 December
------- ------------ ------------
2011 2010
------- ------------ ------------
US$ US$
------- ------------ ------------
Basic 4 538 456 692 234
------- ------------ ------------
9.2 Number of shares
31 December 31 December
------------------------------------ ---------------------------------------- --------------------------------------
2011 2010
------------------------------------ ---------------------------------------- --------------------------------------
Weighted average number of ordinary
shares for
basic earnings per share 2 807 107 289 2 228 151 974
------------------------------------ ---------------------------------------- --------------------------------------
Effect of dilution:
------------------------------------ ---------------------------------------- --------------------------------------
Shares options outstanding 10 742 869 10 742 869
------------------------------------ ---------------------------------------- --------------------------------------
---------------- -----------------
------------------------------------ ---------------------------------------- --------------------------------------
2 817 850 158 2 238 894 843
------------------------------------ ---------------------------------------- --------------------------------------
========== ===========
------------------------------------ ---------------------------------------- --------------------------------------
9.3 Earnings per share (US cents)
31 December 31 December
--------------- ------------ ------------
2011 2010
--------------- ------------ ------------
Basic 0.16 0.03
--------------- ------------ ------------
Diluted basic 0.16 0.03
--------------- ------------ ------------
10. SHARE CAPITAL
31 December 31 December 31 December 31 December
------------------------- --------------- --------------- ------------ ------------
2011 2010 2011 2010
------------------------- --------------- --------------- ------------ ------------
Shares Shares US$ US$
------------------------- --------------- --------------- ------------ ------------
million million
------------------------- --------------- --------------- ------------ ------------
10.1 Authorised
------------------------- --------------- --------------- ------------ ------------
Ordinary shares of
US$0.000028 each 3 500 3 500 98 000 98 000
------------------------- --------------- --------------- ------------ ------------
===== ===== ===== =====
------------------------- --------------- --------------- ------------ ------------
10.2 Issued and fully
paid
------------------------- --------------- --------------- ------------ ------------
31 December 31 December 31 December 31December
------------------------- --------------- --------------- ------------ ------------
2011 2010 2011 2010
------------------------- --------------- --------------- ------------ ------------
Shares million Shares million US$ US$
------------------------- --------------- --------------- ------------ ------------
At 1 January 2 807 1 648 78 598 -
------------------------- --------------- --------------- ------------ ------------
Redenomination of share
capital - - - 46 147
------------------------- --------------- --------------- ------------ ------------
Shares issued - rights
issue - 1 156 - 32 364
------------------------- --------------- --------------- ------------ ------------
Shares issued - share
options - 3 - 87
------------------------- --------------- --------------- ------------ ------------
-------- -------- --------- --------
------------------------- --------------- --------------- ------------ ------------
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 2011, 9 072 000 share options out of the
issued had not been exercised.
Subject to the provisions of section 183 of the Companies Act
(Chapter 24:03), the unissued shares are under the control of the
directors.
10.3 Own Equity Instruments
Own equity instrument amounting to 1 028 172 shares at a cost of
US$8 225 which were held by the company's subsidiary, Stewart
Holdings (Private) Limited, were disposed off in 2010 for a
consideration of US$9 012.
11. DepositS and other accounts
31 December 31 December
----------------------------------------- --------------- --------------
2011 2010
----------------------------------------- --------------- --------------
US$ US$
----------------------------------------- --------------- --------------
11.1 Deposits and other accounts
----------------------------------------- --------------- --------------
Deposits from banks and other financial
institutions 43 009 970 23 183 081
----------------------------------------- --------------- --------------
Current and deposit accounts 96 216 174 56 666 306
----------------------------------------- --------------- --------------
-------------- -------------
----------------------------------------- --------------- --------------
Total deposits 139 226 144 79 849 387
----------------------------------------- --------------- --------------
Less: Financial liabilities at fair
value through profit and
loss*(note 12.1) (40 148 860) (17 177 109)
----------------------------------------- --------------- --------------
-------------- -------------
----------------------------------------- --------------- --------------
99 077 284 62 672 278
----------------------------------------- --------------- --------------
Trade and other payables 3 531 634 3 307 057
----------------------------------------- --------------- --------------
-------------- -------------
----------------------------------------- --------------- --------------
102 608 918 65 979 335
----------------------------------------- --------------- --------------
========= =========
----------------------------------------- --------------- --------------
*The above are all financial liabilities at fair value through
profit and loss designated as such upon initial recognition. The
fair value of the above is the same as the cost. The deposits are
payable on demand, have variable interest rates and varying
security.
11.2 Maturity analysis
31 December 31 December
--------------------- -------------- --------------
2011 2010
--------------------- -------------- --------------
US$ US$
--------------------- -------------- --------------
Less than one month 105 423 635 54 179 210
--------------------- -------------- --------------
1 to 3 months 17 727 720 15 575 677
--------------------- -------------- --------------
3 to 6 months 13 874 789 10 090 000
--------------------- -------------- --------------
6 months to 1 year 2 200 000 4 500
--------------------- -------------- --------------
1 to 5 years - -
--------------------- -------------- --------------
Over 5 years - -
--------------------- -------------- --------------
------------- -------------
--------------------- -------------- --------------
139 226 144 79 849 387
--------------------- -------------- --------------
========= =========
--------------------- -------------- --------------
31 December 31 December
---------------------------------- -------------- ----- -------------- ------
2011 2010
---------------------------------- -------------- ----- -------------- ------
US$ % US$ %
---------------------------------- -------------- ----- -------------- ------
Sectoral analysis of
deposits
---------------------------------- -------------- ----- -------------- ------
Banks and other financial
institutions 43 009 970 31 23 183 081 29
---------------------------------- -------------- ----- -------------- ------
Transport and telecommunications
companies 5 297 087 4 5 829 647 7
---------------------------------- -------------- ----- -------------- ------
Mining companies 1 144 080 1 1 200 512 1
---------------------------------- -------------- ----- -------------- ------
Municipalities and parastatals 19 879 203 14 4 539 082 6
---------------------------------- -------------- ----- -------------- ------
Industrial 38 536 164 28 24 377 638 31
---------------------------------- -------------- ----- -------------- ------
Agriculture 3 180 921 2 4 427 417 6
---------------------------------- -------------- ----- -------------- ------
Individuals 21 438 755 15 10 653 099 13
---------------------------------- -------------- ----- -------------- ------
Other deposits 6 739 964 5 5 638 911 7
---------------------------------- -------------- ----- -------------- ------
------------- ---- ------------- -----
---------------------------------- -------------- ----- -------------- ------
139 226 144 100 79 849 387 100
---------------------------------- -------------- ----- -------------- ------
========= === ======== ===
---------------------------------- -------------- ----- -------------- ------
12. FINANCIAL INSTRUMENTS
Cost Fair Value Fair Value Cost
----------------------------- -------------- -------------- ------------- -------------
31 December 31 December 31 December 31 December
----------------------------- -------------- -------------- ------------- -------------
2011 2011 2010 2010
----------------------------- -------------- -------------- ------------- -------------
12.1 Financial liabilities US$ US$ US$ US$
at fair value through
profit and loss*
----------------------------- -------------- -------------- ------------- -------------
Fixed term deposits 8 910 353 8 910 353 3 469 068 3 469 068
----------------------------- -------------- -------------- ------------- -------------
Negotiable Certificates
of Deposits 31 238 507 31 238 507 13 708 041 13 708 041
----------------------------- -------------- -------------- ------------- -------------
------------- ------------- ------------ ------------
----------------------------- -------------- -------------- ------------- -------------
Total financial liabilities
at fair value
through profit and loss 40 148 860 40 148 860 17 177 109 17 177 109
----------------------------- -------------- -------------- ------------- -------------
======== ======== ======== ========
----------------------------- -------------- -------------- ------------- -------------
All changes in the period to the fair value of the financial
liabilities are attributable to changes in the related credit
risk.
*All financial liabilities at fair value through profit and loss
were designated as such upon initial recognition.
31 December 31 December
------------------------------------- ------------- -------------
2011 2010
------------------------------------- ------------- -------------
US$ US$
------------------------------------- ------------- -------------
12.2 Maturity analysis of financial
liabilities at fair value through
profit and loss
------------------------------------- ------------- -------------
Less than 1 month 22 407 235 8 747 376
------------------------------------- ------------- -------------
1 to 3 months 11 666 836 8 335 233
------------------------------------- ------------- -------------
3 to 6 months 3 874 789 90 000
------------------------------------- ------------- -------------
6 months to 1 year 2 200 000 4 500
------------------------------------- ------------- -------------
1 to 5 years - -
------------------------------------- ------------- -------------
Over 5 years - -
------------------------------------- ------------- -------------
------------ ------------
------------------------------------- ------------- -------------
40 148 860 17 177 109
------------------------------------- ------------- -------------
======== ========
------------------------------------- ------------- -------------
Cost Fair Value Fair Value Cost
------------------------------ ------------- -------------- ------------- ---------------
31 31 31 31
December December December December
------------------------------ ------------- -------------- ------------- ---------------
2011 2011 2010 2010
------------------------------ ------------- -------------- ------------- ---------------
12.3 Financial assets at US$ US$ US$ US$
fair value through profit
and loss
------------------------------ ------------- -------------- ------------- ---------------
Government and public sector
Securities 2 126 657 2 126 657 1 994 585 1 994 585
------------------------------ ------------- -------------- ------------- ---------------
RBZ Forex Bond (1) 2 126 657 2 126 657 1 994 585 1 994 585
------------------------------ ------------- -------------- ------------- ---------------
Bills-own acceptances (2) 22 196 067 22 401 174 14 805 628 14 769 753
------------------------------ ------------- -------------- ------------- ---------------
Promissory Notes (2) 57 884 57 424 499 379 498 798
------------------------------ ------------- -------------- ------------- ---------------
------------ ------------- ------------ --------------
------------------------------ ------------- -------------- ------------- ---------------
Total financial liabilities
at fair value
through profit and loss 24 380 608 24 585 255 17 299 592 17 263 136
------------------------------ ------------- -------------- ------------- ---------------
======== ======== ======== ========
------------------------------ ------------- -------------- ------------- ---------------
All changes in the period to the fair value of the financial
assets are attributable to changes in related credit risk.
(1) Financial assets at fair value through profit and loss were classified as held for trading in accordance
with IAS 39.
(2) Financial assets at fair value through profit and loss were
designated as such upon initial recognition.
The RBZ Bond is valued at cost as there is currently no market
information to facilitate application of fair value principles.
31 December 31 December
-------------------------------------- ------------- -------------
2011 2010
-------------------------------------- ------------- -------------
US$ US$
-------------------------------------- ------------- -------------
12.4 Maturity analysis of financial
assets at fair value through profit
and loss
-------------------------------------- ------------- -------------
Less than 1 month 10 770 543 7 707 188
-------------------------------------- ------------- -------------
1 to 3 months 10 150 024 6 884 042
-------------------------------------- ------------- -------------
3 to 6 months 3 664 688 2 708 362
-------------------------------------- ------------- -------------
6 months to 1 year - -
-------------------------------------- ------------- -------------
1year to 5 years - -
-------------------------------------- ------------- -------------
Over 5 years - -
-------------------------------------- ------------- -------------
------------ ------------
-------------------------------------- ------------- -------------
24 585 255 17 299 592
-------------------------------------- ------------- -------------
======== ========
-------------------------------------- ------------- -------------
13. CASH AND CASH EQUIVALENTS
31 December 31 December
----------------------------------- ------------- --------------
2011 2010
----------------------------------- ------------- --------------
US$ US$
----------------------------------- ------------- --------------
Balances with the Central Bank 12 255 166 5 669 979
----------------------------------- ------------- --------------
Current, nostro accounts and cash 20 010 787 12 676 960
----------------------------------- ------------- --------------
------------ -------------
----------------------------------- ------------- --------------
32 265 953 18 346 939
----------------------------------- ------------- --------------
======== ========
----------------------------------- ------------- --------------
14. LOANS, ADVANCES AND OTHER ACCOUNTS
14.1 Total loans, advances and other accounts
31 December 31 December
---------------------------- ------------- -------------
2011 2010
---------------------------- ------------- -------------
14.1.1 Advances US$ US$
---------------------------- ------------- -------------
Fixed term loans 36 116 550 16 553 444
---------------------------- ------------- -------------
Local loans and overdrafts 56 619 403 39 674 193
---------------------------- ------------- -------------
Statutory reserves* 3 231 838 3 265 176
---------------------------- ------------- -------------
Other accounts 3 834 274 822 584
---------------------------- ------------- -------------
------------ ------------
---------------------------- ------------- -------------
99 802 065 60 315 397
---------------------------- ------------- -------------
======== ========
---------------------------- ------------- -------------
*The statutory reserve balance with the Reserve Bank of Zimbabwe
is non-interest bearing.
The balance was determined on the basis of deposits held and is
not available to the Bank for daily use. The Reserve Bank of
Zimbabwe announced on the 16(th) of February 2012 that the balances
owed to banks would be converted to tradable interest bearing
instruments (refer to Note 20).
2011 2010
------------------------------------ -------------- ---------------
14.1.2 Maturity analysis US$ US$
------------------------------------ -------------- ---------------
Less than one month 64 535 974 45 997 447
------------------------------------ -------------- ---------------
1 to three months 10 679 285 3 554 191
------------------------------------ -------------- ---------------
3 to 6 months 885 387 2 511 409
------------------------------------ -------------- ---------------
6 months to 1 year 2 875 529 5 106 790
------------------------------------ -------------- ---------------
1 to 5 years 18 161 873 743 752
------------------------------------ -------------- ---------------
Over 5 years - -
------------------------------------ -------------- ---------------
------------ -------------
------------------------------------ -------------- ---------------
Total advances 97 138 048 57 913 589
------------------------------------ -------------- ---------------
Provision for impairment losses on
loans and advances (3 354 088) (1 057 977)
------------------------------------ -------------- ---------------
Suspended interest (1 048 007) (627 975)
------------------------------------ -------------- ---------------
------------- --------------
------------------------------------ -------------- ---------------
92 735 953 56 227 637
------------------------------------ -------------- ---------------
Statutory reserves 3 231 838 3 265 176
------------------------------------ -------------- ---------------
Other accounts 3 834 274 822 584
------------------------------------ -------------- ---------------
------------- -------------
------------------------------------ -------------- ---------------
99 802 065 60 315 397
------------------------------------ -------------- ---------------
======== ========
------------------------------------ -------------- ---------------
14.2 Sectoral analysis of utilizations
31 December 31 December
------------------------------ ------------- ----- ------------- -------
2011 2010
------------------------------ ------------- ----- ------------- -------
US$ % US$ %
------------------------------ ------------- ----- ------------- -------
14.2.1 Sectoral analysis
of
utilisations
------------------------------ ------------- ----- ------------- -------
Industrials 50 988 641 52 30 158 132 52
------------------------------ ------------- ----- ------------- -------
Agriculture and horticulture 6 526 499 7 5 079 399 9
------------------------------ ------------- ----- ------------- -------
Conglomerates 222 088 - 3 151 309 5
------------------------------ ------------- ----- ------------- -------
Services 12 800 879 13 8 876 982 15
------------------------------ ------------- ----- ------------- -------
Mining 2 449 213 3 1 120 858 2
------------------------------ ------------- ----- ------------- -------
Food and beverages 5 747 287 6 2 153 130 4
------------------------------ ------------- ----- ------------- -------
Individuals 18 403 441 19 7 373 779 13
------------------------------ ------------- ----- ------------- -------
------------ ---- ------------ ------
------------------------------ ------------- ----- ------------- -------
97 138 048 100 57 913 589 100
------------------------------ ------------- ----- ------------- -------
======== === ======== ===
------------------------------ ------------- ----- ------------- -------
The material concentration of loans and advances are in the
industrial sector at 52% (2010 - 52%).
14.3 Allowance for impairment losses on loans and advances
31 December 2011 31 December 2010
------------------- -------------------------------------- ----------------------------------------
Specific Portfolio Total Specific Portfolio Total
------------------- ------------ ----------- ----------- ------------ ------------ ------------
US$ US$ US$ US$ US$ US$
------------------- ------------ ----------- ----------- ------------ ------------ ------------
At 1 January 1 057 977 - 1 057 977 106 105 - 106 105
------------------- ------------ ----------- ----------- ------------ ------------ ------------
Charge against
profits 2 296 111 - 2 296 111 971 803 - 971 803
------------------- ------------ ----------- ----------- ------------ ------------ ------------
Bad debts written
off - - - (19 931) - (19 931)
------------------- ------------ ----------- ----------- ------------ ------------ ------------
---------- --------- ---------- ----------- ----------- -----------
------------------- ------------ ----------- ----------- ------------ ------------ ------------
At 31 December 3 354 088 - 3 354 088 1 057 977 - 1 057 977
------------------- ------------ ----------- ----------- ------------ ------------ ------------
======= ===== ======= ======== ======== =======
------------------- ------------ ----------- ----------- ------------ ------------ ------------
14.4 Non-performing loans and advances
31 December 31 December
----------------------------------------- ------------- ----------------------
2011 2010
----------------------------------------- ------------- ----------------------
US$ US$
----------------------------------------- ------------- ----------------------
Total non-performing loans and advances 8 983 037 5 939 359
----------------------------------------- ------------- ----------------------
Provision for impairment loss on
loans and advances (3 354 088) (1 057 977)
----------------------------------------- ------------- ----------------------
Suspended interest (1 048 007) (627 975)
----------------------------------------- ------------- ----------------------
------------ ------------
----------------------------------------- ------------- ----------------------
Residue 4 580 942 4 253 407
----------------------------------------- ------------- ----------------------
======== ========
----------------------------------------- ------------- ----------------------
The residue on these accounts represents recoverable portions
covered by realisable security.
15. PROPERTY AND EQUIPMENT
Land and Computer Furniture Motor vehicles Total
buildings equipment and fittings
------------------------ -------------- ------------- -------------- --------------- --------------
US$ US$ US$ US$ US$
------------------------ -------------- ------------- -------------- --------------- --------------
COST
------------------------ -------------- ------------- -------------- --------------- --------------
Balance at 1 January 4 346
2010 2 711 709 503 325 982 502 148 515 051
------------------------ -------------- ------------- -------------- --------------- --------------
Additions 2 102 214 274 407 003 108 804 732 183
------------------------ -------------- ------------- -------------- --------------- --------------
Impairment loss (298 811) - - - (298 811)
------------------------ -------------- ------------- -------------- --------------- --------------
Disposals - - - (37 200) (37 200)
------------------------ -------------- ------------- -------------- --------------- --------------
------------- ----------- ------------ ----------- ------------
------------------------ -------------- ------------- -------------- --------------- --------------
Balance at 31 December 4 742
2010 2 415 000 717 599 1 389 505 220 119 223
------------------------ -------------- ------------- -------------- --------------- --------------
3 568
Additions 8 252 818 939 1 176 536 1 564 286 013
------------------------ -------------- ------------- -------------- --------------- --------------
Net transfers in from
investment
property 65 000 - - - 65 000
------------------------ -------------- ------------- -------------- --------------- --------------
Revaluation gain 250 000 - - - 250 000
------------------------ -------------- ------------- -------------- --------------- --------------
Reclassifications - 15 663 (15 663) - -
------------------------ -------------- ------------- -------------- --------------- --------------
Disposals - (27 930) (71 677) (17 890) (117 497)
------------------------ -------------- ------------- -------------- --------------- --------------
------------ ----------- ------------ ------------ ------------
------------------------ -------------- ------------- -------------- --------------- --------------
Balance at 31 December 8 507
2011 2 738 252 1 524 271 2 478 701 1 766 515 739
------------------------ -------------- ------------- -------------- --------------- --------------
------------ ------------ ------------ ------------ -------------
------------------------ -------------- ------------- -------------- --------------- --------------
ACCUMULATED
DEPRECIATON
------------------------ -------------- ------------- -------------- --------------- --------------
Balance at 1 January
2010 11 204 192 509 556 49 905 763 664
------------------------ -------------- ------------- -------------- --------------- --------------
Charge for the year 58 113 114 140 375 43 985 297 532
------------------------ -------------- ------------- -------------- --------------- --------------
Disposals - - - (16 866) (16 866)
------------------------ -------------- ------------- -------------- --------------- --------------
----------- ----------- ----------- ---------- ------------
------------------------ -------------- ------------- -------------- --------------- --------------
Balance at 1 January 1 044
2011 69 317 306 649 931 77 024 330
------------------------ -------------- ------------- -------------- --------------- --------------
Charge for the year 224 178 694 320 456 256 817 756 191
------------------------ -------------- ------------- -------------- --------------- --------------
Reclassifications - 3 133 (3 133) - -
------------------------ -------------- ------------- -------------- --------------- --------------
Disposals - (29 157) (54 967) (10 640) (94 764)
------------------------ -------------- ------------- -------------- --------------- --------------
------------ ---------- ---------- ----------- ------------
------------------------ -------------- ------------- -------------- --------------- --------------
Balance at 31 December 1 705
2011 293 469 976 912 287 323 201 757
------------------------ -------------- ------------- -------------- --------------- --------------
------------ ----------- ----------- ----------- ------------
------------------------ -------------- ------------- -------------- --------------- --------------
NET BOOK VALUE
------------------------ -------------- ------------- -------------- --------------- --------------
6 801
At 31 December 2011 2 737 959 1 054 295 1 566 414 1 443 314 982
------------------------ -------------- ------------- -------------- --------------- --------------
======== ======== ======== ======== =======
------------------------ -------------- ------------- -------------- --------------- --------------
3 697
At 31 December 2010 2 414 931 400 293 739 574 143 095 893
------------------------ -------------- ------------- -------------- --------------- --------------
======== ======= ====== ====== =======
------------------------ -------------- ------------- -------------- --------------- --------------
3 582
At 1 January 2010 2 711 698 299 133 472 946 98 610 387
------------------------ -------------- ------------- -------------- --------------- --------------
======== ======== ====== ====== =======
------------------------ -------------- ------------- -------------- --------------- --------------
The land and buildings were valued by professional valuers as at
31 December 2011 for year end purposes and the open market value
was US$2 730 000.
The Group has four properties which are encumbered by the
Reserve Bank of Zimbabwe. All liabilities in relation to the
encumbrances have already been discharged and the Group is in the
process of cancelling these bonds and it is the Group's firm belief
that the mortgage bonds will be cancelled.
16. CAPITAL COMMITMENTS
31 December 31 December
------------------------------------ -------------- ---------------
2011 2010
------------------------------------ -------------- ---------------
US$ US$
------------------------------------ -------------- ---------------
Capital expenditure contracted for 45 107 -
------------------------------------ -------------- ---------------
Capital expenditure authorised but
not yet contracted for 6 908 068 2 411 250
------------------------------------ -------------- ---------------
------------- --------------
------------------------------------ -------------- ---------------
6 953 175 2 411 250
------------------------------------ -------------- ---------------
======== ========
------------------------------------ -------------- ---------------
The capital expenditure will be funded from internal
resources.
17. CONTINGENT LIABILITIES
31 December 31December
--------------------- --------------- ---------------
2011 2010
--------------------- --------------- ---------------
US$ US$
--------------------- --------------- ---------------
Guarantees 6 374 815 5 002 123
--------------------- --------------- ---------------
Commitments to lend 20 385 351 13 417 179
--------------------- --------------- ---------------
-------------- --------------
--------------------- --------------- ---------------
26 760 166 18 419 302
--------------------- --------------- ---------------
========= ========
--------------------- --------------- ---------------
18. INVESTMENT IN ASSOCIATE
The Group has a 25% 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
------------------------------------------ ------------- -------------
2011 2010
------------------------------------------ ------------- -------------
US$ US$
------------------------------------------ ------------- -------------
Current assets 2 831 891 222 185
------------------------------------------ ------------- -------------
Non-current assets 68 577 26 058
------------------------------------------ ------------- -------------
Current liabilities (133 823) (19 687)
------------------------------------------ ------------- -------------
Non-current liabilities (2 174 978) -
------------------------------------------ ------------- -------------
------------ -----------
------------------------------------------ ------------- -------------
Equity 591 667 228 556
------------------------------------------ ------------- -------------
======== =======
------------------------------------------ ------------- -------------
Share of associate's revenue and profit:
------------------------------------------ ------------- -------------
Revenue 571 617 676
------------------------------------------ ------------- -------------
======= =======
------------------------------------------ ------------- -------------
Profit/(loss) 113 573 (21 444)
------------------------------------------ ------------- -------------
======= =======
------------------------------------------ ------------- -------------
Carrying amount of the investment 591 667 228 556
------------------------------------------ ------------- -------------
Reconciliation of carrying amount
of investment
in Associate:
------------------------------------------ ------------- -------------
Balance at 1 January 228 556 -
------------------------------------------ ------------- -------------
Increase in investment 249 538 250 000
------------------------------------------ ------------- -------------
Share of profit/(loss) of associate 113 573 (21 444)
------------------------------------------ ------------- -------------
----------- ------------
------------------------------------------ ------------- -------------
Balance at 31 December 591 667 228 556
------------------------------------------ ------------- -------------
======= ======
------------------------------------------ ------------- -------------
19. 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
2011 2010
------------------------ ----- ------------ ------------
US$ US$
------------------------ ----- ------------ ------------
British Pound Sterling GBP 1.5416 1.5442
------------------------ ----- ------------ ------------
South African Rand ZAR 8.1852 6.6249
------------------------ ----- ------------ ------------
European Euro EUR 1.2944 1.3305
------------------------ ----- ------------ ------------
Botswana Pula BWP 7.5301 6.4570
------------------------ ----- ------------ ------------
20. EVENTS AFTER REPORTING DATE
The Reserve Bank of Zimbabwe issued a statement on 16 February
2012 in which it stated that the Government of Zimbabwe would be
issuing tradable and interest bearing instruments through the
Reserve Bank of Zimbabwe, in lieu of the statutory reserve balances
owed to financial institutions. The instruments, which will carry
liquid asset status, will be issued effective 1 January 2012 as
follows:
% of Total Tenor Interest Rate
----------- -------- --------------
30% 2 years 2.5% p.a
----------- -------- --------------
30% 3 years 3.0% p.a
----------- -------- --------------
40% 4 years 3.5% p.a
----------- -------- --------------
Financial institutions that are not willing to partake in the
above would be accorded an option to take up a 15 year bond at an
interest rate of 3% per annum.
The Bank awaits the receipt of the instruments at which point
the maturity profile of the amount included on Note 14 would be
re-profiled.
NMB BANK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2011
31 December 2011 31 December 2010
----------------------------- --- -------------------------------------- ------------------------------------------
US$ US$
----------------------------- --- -------------------------------------- ------------------------------------------
Interest income 19 990 711 10 026 089
---------------------------------- -------------------------------------- ------------------------------------------
Interest expense (8 257 883) (3 143 421)
---------------------------------- -------------------------------------- ------------------------------------------
------------- ------------
----------------------------- --- -------------------------------------- ------------------------------------------
Net interest income 11 732 828 6 882 668
---------------------------------- -------------------------------------- ------------------------------------------
Net foreign exchange gains 1 289 729 1 055 307
----------------------------- --- -------------------------------------- ------------------------------------------
Non-interest income a 12 107 420 9 265 686
----------------------------- --- -------------------------------------- ------------------------------------------
------------- -------------
----------------------------- --- -------------------------------------- ------------------------------------------
Net operating income 25 129 977 17 203 661
---------------------------------- -------------------------------------- ------------------------------------------
Operating expenditure b (16 979 741) (15 365 508)
----------------------------- --- -------------------------------------- ------------------------------------------
Impairment losses on loans
and advances (2 296 111) (971 803)
---------------------------------- -------------------------------------- ------------------------------------------
------------ -----------
----------------------------- --- -------------------------------------- ------------------------------------------
Profit before taxation 5 854 125 866 350
---------------------------------- -------------------------------------- ------------------------------------------
Taxation (1 574 148) (250 240)
---------------------------------- -------------------------------------- ------------------------------------------
------------ ----------
----------------------------- --- -------------------------------------- ------------------------------------------
Profit for the period 4 279 977 616 110
---------------------------------- -------------------------------------- ------------------------------------------
------ -----
----------------------------- --- -------------------------------------- ------------------------------------------
Other comprehensive income - -
----------------------------- --- -------------------------------------- ------------------------------------------
------ -----
----------------------------- --- -------------------------------------- ------------------------------------------
Total comprehensive income
for the
period 4 279 977 616 110
---------------------------------- -------------------------------------- ------------------------------------------
======== ======
----------------------------- --- -------------------------------------- ------------------------------------------
Earnings per share (US
cents):
----------------------------- --- -------------------------------------- ------------------------------------------
-Basic c 25.94 3.73
----------------------------- --- -------------------------------------- ------------------------------------------
NMB BANK LIMITED
STATEMENT OF FINANCIAL POSITION
As at 31 December 2011
31 December 31 December
------------------------------ ------ --------------- ---------------
2011 2010
------------------------------ ------ --------------- ---------------
EQUITY Note US$ US$
------------------------------ ------ --------------- ---------------
Share capital d 16 501 16 501
------------------------------ ------ --------------- ---------------
Capital reserves 14 714 362 14 574 345
-------------------------------------- --------------- ---------------
Retained earnings 6 116 397 1 976 437
-------------------------------------- --------------- ---------------
------------- ------------
------------------------------ ------ --------------- ---------------
Total equity 20 847 260 16 567 283
-------------------------------------- --------------- ---------------
LIABILITIES
------------------------------ ------ --------------- ---------------
Deposits and other accounts 102 720 193 66 086 993
-------------------------------------- --------------- ---------------
Financial liabilities
at fair value
through profit and loss 40 148 860 17 177 109
-------------------------------------- --------------- ---------------
Amount owing to Holding
Company - 1 750 000
-------------------------------------- --------------- ---------------
Current tax liabilities 1 073 698 631 736
-------------------------------------- --------------- ---------------
Deferred tax liabilities - 203 140
-------------------------------------- --------------- ---------------
-------------- -------------
------------------------------ ------ --------------- ---------------
Total liabilities 143 942 751 85 848 978
-------------------------------------- --------------- ---------------
-------------- -------------
------------------------------ ------ --------------- ---------------
Total equity and liabilities 164 790 011 102 416 261
-------------------------------------- --------------- ---------------
========= =========
------------------------------ ------ --------------- ---------------
ASSETS
------------------------------ ------ --------------- ---------------
Cash and cash equivalents e 32 265 953 18 346 939
------------------------------ ------ --------------- ---------------
Financial assets at fair
value through
profit and loss 24 585 255 17 299 592
-------------------------------------- --------------- ---------------
Loans, advances and other
accounts 98 115 726 60 377 965
-------------------------------------- --------------- ---------------
Unquoted investments 81 278 78 872
-------------------------------------- --------------- ---------------
Investment properties f 2 510 000 2 615 000
------------------------------ ------ --------------- ---------------
Property and equipment 6 801 982 3 697 893
-------------------------------------- --------------- ---------------
Deferred tax 429 817 -
------------------------------ ------ --------------- ---------------
-------------- --------------
------------------------------ ------ --------------- ---------------
Total assets 164 790 011 102 416 261
-------------------------------------- --------------- ---------------
========= =========
------------------------------------- --------------- ---------------
NMB BANK LIMITED
STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2011
Capital Reserves
---------------- -------------- --------------------------------------------------- ---------------- -------------
Share Capital Share Premium Revaluation Non Distributable Retained Total
Reserve Reserve Earnings
---------------- -------------- --------------- -------------- ------------------ ---------------- -------------
US$ US$ US$ US$ US$ US$
---------------- -------------- --------------- -------------- ------------------ ---------------- -------------
Balances at
at 31 December 8 383
2009 - - 274 904 6 139 898 1 968 837 639
---------------- -------------- --------------- -------------- ------------------ ---------------- -------------
Total
comprehensive
income for the
year - - - - 616 110 616 110
---------------- -------------- --------------- -------------- ------------------ ---------------- -------------
Impairment
allowance
for loan and
advances - - 608 510 - (608 510) -
---------------- -------------- --------------- -------------- ------------------ ---------------- -------------
Redenomination
of
Share capital 16 500 6 123 398 - (6 139 898) - -
---------------- -------------- --------------- -------------- ------------------ ---------------- -------------
7 567
Shares issued 1 7 567 533 - - - 534
---------------- -------------- --------------- -------------- ------------------ ---------------- -------------
-------- ------------ ------------- ------------ ------------ ------------
---------------- -------------- --------------- -------------- ------------------ ---------------- -------------
Balances as
at 31
December 13 690 16 567
2010 16 501 931 883 414 - 1 976 437 283
---------------- -------------- --------------- -------------- ------------------ ---------------- -------------
Total
comprehensive
Income for the 4 279
year - - - - 4 279 977 977
---------------- -------------- --------------- -------------- ------------------ ---------------- -------------
Impairment
allowance
reversal for
loans
and advances - - 140 017 - (140 017) -
---------------- -------------- --------------- -------------- ------------------ ---------------- -------------
------- ------------- ------------ ------------ ------------- ------------
---------------- -------------- --------------- -------------- ------------------ ---------------- -------------
Balance at 31
December 13 690 1 023 20 847
2011 16 501 931 431 - 6 116 397 260
---------------- -------------- --------------- -------------- ------------------ ---------------- -------------
===== ========= ======= ======== ======== ========
---------------- -------------- --------------- -------------- ------------------ ---------------- -------------
NMB BANK LIMITED
STATEMENT OF CASH FLOWS
for the year ended 31 December 2011
31 December 31 December
----------------------------------------------- ----------------- ----------------
2011 2010
----------------------------------------------- ----------------- ----------------
US$ US$
----------------------------------------------- ----------------- ----------------
CASH FLOWS FROM OPERATING ACTIVITIES
----------------------------------------------- ----------------- ----------------
Profit before taxation 5 854 125 866 350
----------------------------------------------- ----------------- ----------------
Non-cash items
----------------------------------------------- ----------------- ----------------
-Impairment losses on loans and advances 2 296 111 971 803
----------------------------------------------- ----------------- ----------------
-Investment properties fair value adjustment 40 000 784 600
----------------------------------------------- ----------------- ----------------
-Loss/(profit) on disposal of property
and equipment 18 046 (64 527)
----------------------------------------------- ----------------- ----------------
-Quoted and other investments fair value
adjustment (2 406) (2 365)
----------------------------------------------- ----------------- ----------------
-Profit on disposal of quoted and other
investments - (13 232)
----------------------------------------------- ----------------- ----------------
-Impairment (gain)/loss on land and buildings (250 000) 298 811
----------------------------------------------- ----------------- ----------------
-Depreciation 756 191 297 532
----------------------------------------------- ----------------- ----------------
------------ ------------
----------------------------------------------- ----------------- ----------------
Operating cash flows before changes in
operating assets and liabilities 8 712 067 3 138 972
----------------------------------------------- ----------------- ----------------
Changes in operating assets and liabilities
----------------------------------------------- ----------------- ----------------
Financial liabilities at fair value through
profit and loss 22 971 751 10 732 177
----------------------------------------------- ----------------- ----------------
Deposits and other accounts 36 633 199 42 403 387
----------------------------------------------- ----------------- ----------------
Loans, advances and other accounts (40 033 873) (48 345 669)
----------------------------------------------- ----------------- ----------------
Financial assets at fair value through
profit and loss (7 285 663) (10 164 569)
----------------------------------------------- ----------------- ----------------
---------------- ---------------
----------------------------------------------- ----------------- ----------------
Net cash inflow/(outflow) generate from
operations 20 997 481 (2 235 702)
----------------------------------------------- ----------------- ----------------
--------------- ---------------
----------------------------------------------- ----------------- ----------------
Taxation
----------------------------------------------- ----------------- ----------------
Corporate tax paid (1 765 142) (445 657)
----------------------------------------------- ----------------- ----------------
------------- --------------
----------------------------------------------- ----------------- ----------------
Net cash inflow/(outflow) from operating
activities 19 232 339 (2 681 359)
----------------------------------------------- ----------------- ----------------
-------------- --------------
----------------------------------------------- ----------------- ----------------
CASH FLOWS FROM INVESTING ACTIVITIES
----------------------------------------------- ----------------- ----------------
Proceeds on disposal of investment property 4 688 84 860
----------------------------------------------- ----------------- ----------------
Purchase of property and equipment (3 568 013) (732 183)
----------------------------------------------- ----------------- ----------------
Improvements to investment property - (180 000)
----------------------------------------------- ----------------- ----------------
Proceeds from disposal of quoted and other
investments - 334 913
----------------------------------------------- ----------------- ----------------
--------------- -------------
----------------------------------------------- ----------------- ----------------
Net cash outflow from investing activities (3 563 325) (492 410)
----------------------------------------------- ----------------- ----------------
--------------- --------------
----------------------------------------------- ----------------- ----------------
Net cash inflow/(outflow)before financing
activities 15 669 014 (3 173 769)
----------------------------------------------- ----------------- ----------------
-------------- -------------
----------------------------------------------- ----------------- ----------------
CASH FLOWS FROM FINANCING ACTIVITIES
----------------------------------------------- ----------------- ----------------
Proceeds from issue of shares - 7 567 534
----------------------------------------------- ----------------- ----------------
(Decrease)/increase in amount from Holding
Company (1 750 000) 1 750 000
----------------------------------------------- ----------------- ----------------
------------ -----------
----------------------------------------------- ----------------- ----------------
Net cash (outflow)/inflow from financing
activities (1 750 000) 9 317 534
----------------------------------------------- ----------------- ----------------
-------------- -------------
----------------------------------------------- ----------------- ----------------
Net increase in cash and cash equivalents 13 919 014 6 143 765
----------------------------------------------- ----------------- ----------------
Cash and cash equivalents at the beginning
of the year 18 346 939 12 203 174
----------------------------------------------- ----------------- ----------------
-------------- -------------
----------------------------------------------- ----------------- ----------------
Cash and cash equivalents at the end of
the year (note e) 32 265 953 18 346 939
----------------------------------------------- ----------------- ----------------
======== ========
----------------------------------------------- ----------------- ----------------
NMB BANK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2011
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
-------------------------------- ------------- -------------
2011 2010
-------------------------------- ------------- -------------
US$ US$
-------------------------------- ------------- -------------
Net gains from quoted and
other investments 2 406 2 365
-------------------------------- ------------- -------------
Investment property fair
value adjustment (40 000) (784 600)
-------------------------------- ------------- -------------
Net commission and fee income 11 958 025 9 691 069
-------------------------------- ------------- -------------
Profit on disposal of unquoted
investments - 13 232
-------------------------------- ------------- -------------
(Loss)/profit on disposal
of property (18 046) 64 527
-------------------------------- ------------- -------------
Fair value gains on financial
instruments 180 118 54 404
-------------------------------- ------------- -------------
Other net operating income 24 917 224 689
-------------------------------- ------------- -------------
------------ ------------
-------------------------------- ------------- -------------
12 107 420 9 265 686
-------------------------------- ------------- -------------
======== ========
-------------------------------- ------------- -------------
b. Operating EXPENDITURE
31 December 31 December
------------------------------------ ------------- -------------
2011 2010
------------------------------------ ------------- -------------
US$ US$
------------------------------------ ------------- -------------
The operating profit is after
charging the following:
------------------------------------ ------------- -------------
Administration costs 8 599 131 5 924 036
------------------------------------ ------------- -------------
Audit fees 151 515 153 864
------------------------------------ ------------- -------------
Staff costs - salaries, allowances
and related costs 7 722 904 5 601 653
------------------------------------ ------------- -------------
- retrenchment - 3 089 612
------------------------------------ ------------- -------------
Depreciation 756 191 297 532
------------------------------------ ------------- -------------
Impairment (gain)/loss on land
and buildings (250 000) 298 811
------------------------------------ ------------- -------------
------------ ------------
------------------------------------ ------------- -------------
16 979 741 15 365 508
------------------------------------ ------------- -------------
======== ========
------------------------------------ ------------- -------------
c. EARNINGS PER SHARE
The calculation of earnings per share is based on the following
figures:
c.1 Earnings
31 December 31 December
------- ------------ ------------
2011 2010
------- ------------ ------------
US$ US$
------- ------------ ------------
Basic 4 279 977 616 110
------- ------------ ------------
c.2 Number of shares
Weighted average shares in issue 16 501 000 16 501 000
---------------------------------- ----------- -----------
c.3 Earnings per share (US cents)
Basic 25.94 3.73
------- ------ -----
d. SHARE CAPITAL
d.1 Authorised
The authorised ordinary share capital at 31 December 2011 is at
the historical cost figure of US$25 000 (2010 - 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 2011 is at the
historical cost figure of US$16 501 (2010 - US$16 501) comprising
16.501 million ordinary shares of US$0.001 each
e. CASH AND CASH EQUIVALENTS
31 December 31 December
----------------------------------- ------------- -------------
2011 2010
----------------------------------- ------------- -------------
US$ US$
----------------------------------- ------------- -------------
Balance with the Central Bank 12 255 166 5 669 979
----------------------------------- ------------- -------------
Current, nostro accounts and cash 20 010 787 12 676 960
----------------------------------- ------------- -------------
------------ ------------
----------------------------------- ------------- -------------
32 265 953 18 346 939
----------------------------------- ------------- -------------
======== ========
----------------------------------- ------------- -------------
f. INVESTMENT PROPERTIES
31 December 31 December
----------------------------------- ------------ ------------
2011 2010
----------------------------------- ------------ ------------
US$ US$
----------------------------------- ------------ ------------
Cost at 1 January 2 615 000 3 219 600
----------------------------------- ------------ ------------
Imporovements - 180 000
----------------------------------- ------------ ------------
Net transfers out to property and (65 000) -
equipment
----------------------------------- ------------ ------------
Fair value adjustments (40 000) (784 600)
----------------------------------- ------------ ------------
----------- -----------
----------------------------------- ------------ ------------
2 510 000 2 615 000
----------------------------------- ------------ ------------
======== ========
----------------------------------- ------------ ------------
Rental income amounting to US$6 600 (2010 - US$3 855) was
received and no operating expenses were incurred on the investment
properties in the current period.
Included in the investment properties is a property which is
encumbered by the Reserve Bank of Zimbabwe. All liabilities in
relation to this encumbrance have already been discharged and the
Bank is in the process of cancelling this bond and it is the Bank's
firm belief that the mortgage bond will be cancelled.
The Bank has no restrictions on the realisability of all other
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 2011. The professional valuers considered comparable
market evidence of recent sale transactions and those transactions
where firm offers had been made but awaiting acceptance.
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
planned attended
-------------------- --------- ----------
T N Mundawarara 4 3
-------------------- --------- ----------
A M T Mutsonziwa 4 4
-------------------- --------- ----------
J A Mushore 4 3
-------------------- --------- ----------
F Zimuto* 4 4
-------------------- --------- ----------
B P Washaya 4 4
-------------------- --------- ----------
B Ndachena 4 4
-------------------- --------- ----------
L Chinyamutangira 4 4
-------------------- --------- ----------
F S Mangozho 4 4
-------------------- --------- ----------
B W Madzivire 4 4
-------------------- --------- ----------
M Mudukuti 4 3
-------------------- --------- ----------
L Majonga (Ms) 4 3
-------------------- --------- ----------
J Chigwedere 4 4
-------------------- --------- ----------
J de la Fargue 4 3
-------------------- --------- ----------
J Chenevix-Trench 4 4
-------------------- --------- ----------
*Mr F Zimuto became a member of the Board on 16 March 2011.
3.1.2 Audit Committee
Name Meetings Meetings
planned attended
---------------------- --------- ----------
Mr B W Madzivire 4 4
---------------------- --------- ----------
Mr A M T Mutsonziwa 4 4
---------------------- --------- ----------
Ms L Majonga 4 4
---------------------- --------- ----------
Mr J de la Fargue 4 4
---------------------- --------- ----------
3.1.3 Risk Management Committee
Name Meetings Meetings
planned attended
-------------------- --------- ----------
Mr J Chigwedere 4 4
-------------------- --------- ----------
Ms L Majonga 4 3
-------------------- --------- ----------
Mr B P Washaya 4 4
-------------------- --------- ----------
Mr J de la Fargue 4 3
-------------------- --------- ----------
Mr J A Mushore 4 3
-------------------- --------- ----------
Mr F S Mangozho 4 4
-------------------- --------- ----------
Mr F Zimuto* 4 3
-------------------- --------- ----------
* Mr F Zimuto became a member of the Committee with effect from
16 March 2011.
3.1.4 Asset and Liability Management Committee (ALCO), Finance & Strategy Committee
Name Meetings Meetings
planned attended
---------------------- --------- ----------
Mr T N Mundawarara 4 4
---------------------- --------- ----------
Mr B P Washaya 4 4
---------------------- --------- ----------
Mr B Ndachena 4 4
---------------------- --------- ----------
Mr J A Mushore 4 4
---------------------- --------- ----------
Mr J Chenevix-Trench
(alternate J de
la Fargue) 4 2
---------------------- --------- ----------
Mr J Chigwedere 4 4
---------------------- --------- ----------
Mr F S Mangozho 4 4
---------------------- --------- ----------
Mr L Chinyamutangira 4 4
---------------------- --------- ----------
Mr F Zimuto* 4 3
---------------------- --------- ----------
*Mr F Zimuto became a member of the Committee with effect from16
March 2011.
3.1.5 Loans Review Committee
Name Meetings Meetings
planned attended
--------------------- --------- ----------
Mr A M T Mutsonziwa 4 3
--------------------- --------- ----------
Mr M Mudukuti 4 3
--------------------- --------- ----------
Mr J de la Fargue* 4 2
--------------------- --------- ----------
Mr B Ndachena* 4 2
--------------------- --------- ----------
*Mr J de Fargue resigned from the committee with effect from 16
May 2011 and Mr B Ndachena became a member of the committee with
effect from 27 May 2011.
3.1.6 Human Resources, Remuneration and Nominations Committee
Name Meetings Meetings
planned attended
---------------------- --------- ----------
Mr M Mudukuti 4 3
---------------------- --------- ----------
Mr B Madzivire 4 4
---------------------- --------- ----------
Mr T N Mundawarara 4 3
---------------------- --------- ----------
Mr J Chenevix-Trench 4 4
---------------------- --------- ----------
Mr J A Mushore 4 3
---------------------- --------- ----------
Mr A M T Mutsonziwa 4 4
---------------------- --------- ----------
Mr F Zimuto* 4 3
---------------------- --------- ----------
*Mr F Zimuto became a member of the Committee with effect from
16 March 2011.
3.1.7 Credit Committee
Name Meetings Meetings
planned attended
---------------------- --------- ----------
Mr T N Mundawarara 4 4
---------------------- --------- ----------
Mr L Chinyamutangira 4 4
---------------------- --------- ----------
Mr B P Washaya 4 4
---------------------- --------- ----------
Mr J de la Fargue 4 4
---------------------- --------- ----------
Mr J A Mushore 4 3
---------------------- --------- ----------
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 Group 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.
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
---------------------------------------------------- -------------- --------------
2011 2010
---------------------------------------------------- -------------- --------------
US$ US$
---------------------------------------------------- -------------- --------------
Share capital 16 501 16 501
---------------------------------------------------- -------------- --------------
Share premium 13 690 931 13 690 931
---------------------------------------------------- -------------- --------------
Retained earnings 6 116 397 1 976 437
---------------------------------------------------- -------------- --------------
------------- -------------
---------------------------------------------------- -------------- --------------
19 823 829 15 683 869
---------------------------------------------------- -------------- --------------
Less: capital allocated for market and operational
risk (571 954) (1 580 551)
---------------------------------------------------- -------------- --------------
Credit to insiders (892 862) (115 772)
---------------------------------------------------- -------------- --------------
------------- -------------
---------------------------------------------------- -------------- --------------
Tier 1 capital 18 359 013 13 987 546
---------------------------------------------------- -------------- --------------
Tier 2 capital (subject to limit as per
Banking Regulations) 1 023 431 883 414
---------------------------------------------------- -------------- --------------
Subordinated debt - -
---------------------------------------------------- -------------- --------------
Portfolio provisions (limited to 1.25% of
risk weighted assets) 1 023 431 883 414
---------------------------------------------------- -------------- --------------
Portfolio provisions (limited to 1.25% of
risk weighted assets) - -
---------------------------------------------------- -------------- --------------
------------- ------------
---------------------------------------------------- -------------- --------------
Total Tier 1 & 2 capital 19 382 444 14 870 960
---------------------------------------------------- -------------- --------------
Tier 3 capital (sum of market and operational
risk capital) 571 954 1 580 551
---------------------------------------------------- -------------- --------------
------------- ------------
---------------------------------------------------- -------------- --------------
Total capital base 19 954 398 16 451 511
---------------------------------------------------- -------------- --------------
======== ========
---------------------------------------------------- -------------- --------------
Total risk weighted assets 138 868 906 94 154 367
---------------------------------------------------- -------------- --------------
========= ========
---------------------------------------------------- -------------- --------------
Tier 1 ratio 13.22% 14.9%
---------------------------------------------------- -------------- --------------
Tier 3 ratio 0.74% 0.9%
---------------------------------------------------- -------------- --------------
Tier 3 ratio 0.41% 1.7%
---------------------------------------------------- -------------- --------------
Total capital adequacy ratio 14.37% 17.5%
---------------------------------------------------- -------------- --------------
RBZ minimum required 10.00% 10.0%
---------------------------------------------------- -------------- --------------
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
2011 and 2010.
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 Banking Corporate Banking Treasury International Banking Unallocated Total
US$ US$ US$ US$ US$ US$
Income
Third party 12 122 517 17 608 301 2 521 784 1 190 962 (55 704) 33 387 860
Inter -segment - - - - - -
----------- ------------- ----------- ------------ ---------- -------------
Total
operating
income 12 122 517 17 608 301 2 521 784 1 190 962 (55 704) 33 387 860
Impairment
losses on
loans and
advances (284 178) (2 011 933) - - - (2 296 111)
----------- ------------- ----------- ------------ ---------- -------------
Net operating
income 11 838 339 15 596 368 2 521 784 1 190 962 (55 704) 31 091 749
------------ ------------ ----------- ------------ ---------- ------------
Results
Interest and
similar
income 4 191 175 14 567 481 1 232 055 - - 19 990 711
Interest and
similar
expenses (1 496 919) (6 078 341) (682 623) - - (8 257 883)
----------- ------------ ----------- ----------- ---------- --------------
Net interest
income 7 930 889 3 040 821 - 1 190 962 (55 252) 12 107 420
------------ ------------ ----------- ------------ ----------- -------------
Fee and
commission
income 7 930 889 3 040 821 - 1 190 962 (55 252) 12 107 420
Feee and - - - - - -
commission
expense
----------- ----------- ---------- ----------- ----------- ------------
Net fee and
commission
income 7 930 889 3 040 821 - 1 190 962 (55 252) 12 107 420
---------- ----------- ---------- ----------- ----------- -------------
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)
---------- ------------ ---------- ----------- ----------- -----------
Profit/(loss)
for the year 3 141 886 7 926 550 1 224 334 340 776 (8 353 569) 4 279 977
---------- ----------- ---------- ----------- ------------ ------------
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
------------------------------- ---------- ----------- ----------- ------- ----------- ------------
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 2010
Retail Corporate Treasury International Unallocated Total
Banking Banking Banking
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
US$ US$ US$ US$ US$ US$
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
Income
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
Third party 6 344 836 12 419 606 1 371 284 695 863 (484 507) 20 347 082
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
Inter - segment - - - - - -
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
------------- -------------- ------------- ----------- ------------ --------------
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
Total operating
income 6 344 836 12 419 606 1 371 284 695 863 (484 507) 20 347 082
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
Impairment
losses on loans
and advances (87 941) (883 862) - - - (971 803)
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
------------ -------------- ------------- ----------- ------------ --------------
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
Net operating
income 6 256 895 11 535 744 1 371 284 695 863 (484 507) 19 375 279
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
------------- -------------- ------------ ----------- ----------- -------------
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
Results
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
Interest and
similar income 2 110 273 7 489 810 426 006 - - 10 026 089
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
Interest and
similar expense (669 134) (2 339 207) (135 080) - - (3 143 421)
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
------------ ------------- ------------- ------------ ------------ -------------
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
Net interest
income 1 441 139 5 150 603 290 926 - - 6 882 668
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
------------ ------------- ----------- ------------ ------------ -------------
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
Fee and
commission
income 4 234 563 4 929 796 - 695 863 (169 153) 9 691 069
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
Fee and - - - - - -
commission
expense
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
------------ ------------ ------------ ----------- ------------ -------------
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
Net fees and
commission
income 4 234 563 4 929 796 - 695 863 (169 153) 9 691 069
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
------------ ------------ -------------- ------------ -------------- ------------
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
Depreciation of
property and
equipment 139 376 18 583 5 807 16 261 117 505 297 532
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
Segment profit/
(loss) 496 672 5 874 581 1 075 705 (150 877) (6 429 731) 866 350
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
Income tax
expense - - - - - (250 240)
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
------------ ------------- ------------- ------------ ------------- ------------
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
Profit/(loss)
for the year 496 672 5 874 581 1 075 705 (150 877) (6 429 731) 616 110
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
======= ======== ======== ======== ========= =======
----------------- -------------- ---------------- --------------- -------------- --------------- ---------------
Assets and Liabilities
------------------------------- -------- ----------- ----------- ------- ----------- ------------
Capital expenditure 368 979 49 197 15 374 43 048 255 585 732 183
------------------------------- -------- ----------- ----------- ------- ----------- ------------
12 396
Total assets 655 56 968 230 27 600 964 - 5 450 412 102 416 261
------------------------------- -------- ----------- ----------- ------- ----------- ------------
14 158
Total liabilities and capital 924 33 345 945 32 344 518 - 22 566 874 102 416 261
------------------------------- -------- ----------- ----------- ------- ----------- ------------
8. GEOGRAPHICAL INFORMATION
The Group operates in one geographical market, Zimbabwe.
NMBZ HOLDINGS LIMITED
NOTICE TO MEMBERS
Notice is hereby given that the 17(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 12 June 2012 at 10:
00 hours for the following purposes:
ORDINARY BUSINESS
1. To receive and adopt the Financial Statements for the year
ended 31 December 2011, together with the reports of the Directors
and Auditors thereon.
2. To appoint Directors. In accordance with the Articles of
Association, Mr F Zimuto, who was appointed subsequent to the last
Annual General Meeting (AGM) will retire at the forth coming AGM
and Mr T N Mundawarara, Mr J Chigwedere and Mr A M T Mutsonziwa
retire by rotation. Being eligible, all the retiring directors
offer themselves for re-election.
3. To appoint Auditors for 2012.
4. To approve Messrs Ernst & Young's remuneration for the year ended 31 December 2011.
SPECIAL BUSINESS
5. To consider and if deemed appropriate, to approve with or without amendment:
"That the 2012 Executive Share Option Scheme ("the Scheme"),
setting aside for the Scheme ordinary shares not exceeding 10% of
the issued ordinary share capital of the Company at the time of
implementing the Scheme, be and is hereby approved and adopted by
the Members of the Company, subject to the Zimbabwe Stock Exchange
Listing Rules."
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
29 March 2012
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 Services PLC
1 Armagh Avenue 36 St Andrew Square
(Off Enterprise Road) Edinburgh
Eastlea EH2 2YB
P O Box 11 UK
Harare
Zimbabwe
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EASDPALLAEFF
Nmbz Holdings Ld (LSE:NMB)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Nmbz Holdings Ld (LSE:NMB)
Gráfica de Acción Histórica
De May 2023 a May 2024
