NMB Bank has recorded a $21.3 million after tax profit during the year ended December 31, 2018 up from the $10 million recorded in the previous year.
Addressing delegates during an analysts briefing, NMB Bank Chief Executive Officer Benefit Washaya said this was largely due to the increase in interest income.
“The group recorded an after tax profit of $21.3 million during the year ended December 31, 2018, up from the $10 million that we achieved during the year ended December 31, 2017.
“This was largely due to the increase in interest income,” he said.
Washaya said the board declared a dividend of 96c per share compared to the 36c that had been declared on December 31, 2017.
“Because of that the board declared a dividend of 96c per share compared to the 36c that had been declared on December 31, 2017. We are targeting an NPO ratio to less than 5%”, Washaya said.
He said the group changed its business model in order to reach other places that were not represented.
“As NMB we changed our business model a few years ago and we felt that we needed to be represented in certain centres that were previously not represented before 2018, we opened a number of branches in areas where we were not represented such as Masvingo, Chinhoyi, Kwekwe .
“In 2018 we opened some two service centres, one in Bindura and one in Chitungwiza. We undertook the construction of our new head office along Borrowdale road. Because of our business model, we have been very aggressive on the pose machine deployment,” he said.
He added that the pose machine that they introduced named kagwenya had been well received.
“We introduced a pose machine popularly known as Kagwenya which has been very well received in the market. an anticipation of an increase in transactional volumes upgraded our call banking system in February 2018 and we also went on to upgrade other support systems.
“We continued with the NMB lite account, this has been very well received by potential customers. During the third quarter of this year we will be opening a service centre and we all acknowledge that costs are going up,” he said.