Omega Ukama 
NMB’s loans and advances as of April 30 nudged up by eight percent to $228 million.
NMB Bank says it has seen a significant increase in income following its new accounts blitz programme.
The bank’s chief executive officer Benefit Washaya said non-interest income increased 83 percent during the first four months of 2018, mainly as a result of new accounts.
“Net-interest-income and non-interest-income increased by 30 percent and 83 percent, respectively. The increase in net-interest income was driven by a 13 percent jump in interest income and a 13 percent reduction in interest expense. The increase in non-interest income resulted from increased transaction revenues due to the increase in the number of accounts as well as the migration to the digital platforms,” Washaya said at the company’s 23rd annual general meeting last week.
Washaya said the bank had been pushing for an increase in new accounts by encouraging individuals and corporates to open new accounts with the bank.
“We are on a nationwide blitz, to open new accounts and we are happy with the response so far,” he said.
The increase in non-interest income is, however, also in line with trends in the local banking sector. Almost all banks in the country have been reporting increases in the space as a result of increased activity in electronic transactions, in the face of cash shortages in the country.
Noting that the bank had continued with its “strategic initiative” to loan more point of sale machines to improve convenience to its customers, Washaya said: “We realised that the cost of the traditional machines is prohibitive for some traders; we are now also distributing cheaper machines to informal traders and SMEs.”
Transaction volumes had significantly improved on all its internal platforms with the bank recording a significant increase in digital banking income during the first four months to April.
The bank completed the upgrade of its core banking system in February this year, along with other upgrades in its internal system, which it says has resulted in the improvement of the processing capacity of its internal system.
NMB opened a service centre in Bindura in May this year, which will serve an area not previously represented by the bank which had also started constructing its new headquarters in Borrowdale.
“This is on a piece of land that we acquired for this purpose some fifteen years ago. The significant cost of the project will be financed by part disposal of the piece of land,” he said.
NMB’s loans and advances as of April 30 nudged up by eight percent to $228 million. Operating income at $19,2 million increased by 63 percent.
The bank’s non-performing loans ratio has reduced to 6,62 percent from 12,28 percent in the same period last year. Washaya said the bank was confident that it would achieve its target of five percent by December 31 this year.
