LISTED financial services provider NMB says its main subsidiary, NMB Bank Limited remains well capitalized with a total capital adequacy ratio of 27,79 percent indicating that discussions with various providers of debt financing are at various stages of completion.
It expects that draw-downs will commence in the third quarter of the year.
“The main subsidiary, NMB Bank Limited remains well capitalized with a total capital adequacy ratio of 27,79 percent. Risk-weighted assets stood at $1,2 trillion, up 675 percent from December 2022 levels. The bank is in discussion with various providers of debt financing and the discussions are at various stages of completion. It is expected that draw-downs will commence in the third quarter of 2023,” reads part of its half-year financial statement.
The financial institution said it achieved operating income of $283 billion in the first six months of the year from $51 billion recorded in the comparative period.
The operating income was driven by a significant increase in interest income and continued growth in fees and commission income.
In the period under review, total assets increased by 145 percent to close the period at $1 trillion largely responding to inflation and movements in the exchange rate.
Loans and advances closed the period at $363 billion, up 151 percent from December 2022 levels.
It noted that the Group continues to take a measured approach to risk, as evidenced by the strong asset quality with a Non-Performing Loans (NPL) ratio of 0,57 percent compared to 1,09 percent as at 31 December 2022.
The reversal in expected credit losses was $906 million for the period under review.
Deposits and other liabilities grew by 109 percent from December 2022 levels. This was largely reflecting the impact of the exchange rate depreciation on US dollar deposits.
Going forward, the bank said the attainment of macroeconomic stability will be primarily hinged on the continued tight stance on money supply and accelerated liberalization of the foreign exchange market.
It said the recently secured Afreximbank facility offers a lifeline, sustained economic recovery.
