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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Nmbz Holdings Ld | LSE:NMB | London | Ordinary Share | ZW0009011389 | ORD ZWR0.25 (UK REG) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.00 | - |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
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
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