NMB BANK POSTS STRONG AFTER TAX PROFIT

The NMB Managing Director Ms Ineke Bussemaker 

NATIONAL Microfinance Bank (NMB) has posted a 4 per cent increase in net profit in the first quarter this year 40.9bn/- compared to 39.3bn/- of the corresponding period in 2016.

The NMB Managing Director Ms Ineke Bussemaker attributed the good start of the year to improved operating income and increased recoveries of previously non-performing loans. Ms Bussemaker said that total operating income rose by 4.6 per cent to 58.7bn/- in the quarter under review from 56.1bn/- posted in the corresponding period 2016.

This growth was driven by an increase in both the net interest income as well as the foreign exchange revenue which increased by 41 per cent from to 4.9bn/- in the first quarter from 3.5bn/-.

“Net interest income for the first quarter was 115.9bn/-, a 9.4 per cent increase from 106bn/- for the same period in 2016 and 0.9 per cent increase compared to 114.9bn/- registered in the last quarter of 2016,” she said.

The banks financials also indicates that Non-interest revenue (NIR) increased from what was recorded in the same period in 2016 as well as the previous quarter. The bank’s NIR rose by 5.3 per cent to 41.5bn/-in the quarter under review from 39.4bn/- in the corresponding period last year and by 4 per cent from 39.9bn/- recorded in the 4th quarter of 2016. Customer deposits only grew by 0.9 per cent to 3.75tri/- from 3.71tri/- in the last quarter of 2016.

“To grow the customer base and subsequently the deposit base, the bank is deploying more agents. NMB Wakala across the country. The goal is to have a total of 4,500 agents by the end of the year,” she said.

The ongoing market-wide liquidity shortage has forced the bank to prudently slow down on the lending. Loans and advances extended to customers in the quarter decreased by 1.2 per cent to 2.76tri/- from 2.79tri/-recorded in the previous quarter.

Our loan to deposit ratio remains healthy at 74.6 per cent. “Our loan recovery efforts are reflected by the Non- Performing Loans (NPL) ratio which has decreased to 4.6 per cent from 4.8 per cent which was recorded in the previous quarter.

“This is a good start to the year. The management team is committed to deliver good returns to our shareholders for the year 2017,” she said.

Source: DailyNews