NMBZ Imara Investment Conference Presentation June 2013

7/28/2019 NMBZ Imara Investment Conference Presentation June 2013

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NMBZ HOLDINGS LIMITED

Imara Edwards Fifth Annual Investor

Conference

Stewarts Room, Meikles Hotel, Harare.

Monday, 3 June 2013


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NMBZ Holdings

NMBZ is a Zimbabwean based investment holding company whose principal subsidiary

is NMB Bank Limited, a registered commercial bank in terms of the Zimbabwean

Banking Act Chapter 24:20.

Its other subsidiary is Stewart Holdings (Private) Limited, an equities holding company.

The Group has a dual listing on the Zimbabwean Stock Exchange and the London Stock

Exchange.


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History of NMBZ Holdings

Established in 1993 as National Merchant Bank of Zimbabwe Limited & registered asan Accepting House under the Banking Act becoming the 1st indigenous bank.

Converted to a commercial bank in 1999.

Listed on the Zimbabwe Stock Exchange & London Stock Exchange in 1997.

Awarded the international EURO Money awards for Excellence both in 1998 and 1999.

Also won the Financial Times Banker Magazine, Bank of the Year Award for the best

bank in Zimbabwe, in 2001 and 2002. Became a VISA member in 2000.

2010-Raised $10 million through a Rights Issue that saw African Century Financial

Services Investments LLP (an investment partnership from London) take up 28.21%

shareholding in NMBZ Holdings Limited, this was later reduced to 25% to comply with

regulations.

2013-Private placement & coming in of FMO (Netherlands DFI), AfricInvest (TunisianPrivate Equity Fund) & Norfund (Norwegian DFI) as shareholders with a 9% stake each.


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NMBZ HOLDINGS LIMITED CORPORATE STRUCTURE

NMBZ Holdings Limited

Stewart Holdings

100%

NMB Bank Limited

100%


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Shareholding Structure Prior to Private Placement

Shareholder Shareholding (%)

African Century LLP 25.1

Old Mutual Zimbabwe limited 20.9

Lalibela Limited 7.7Alsace Trust 6.0

Cornerstone Trust 6.0

Wamambo Investments Trust 5.1


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Shareholding Structure post Private Placement

Shareholder Shareholding (%)

African Century LLP (UK based Partnership) 18.3

Old Mutual Zimbabwe 15.3

Founding shareholders (Zimbabwean) 12.5

AfricInvest (Tunisian Private Equity Fund) 9.0

FMO (Netherlands DFI) 9.0

Norfund (Norwegian DFI) 9.0

Note: The investment by AfricInvest, FMO & Norfund is awaiting CentralBank Exchange Control Approval.


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Vision, Mission & Core Values

VISION

To be the leading financial services group in our chosen market.

MISSION

To provide premium financial services to existing and potential high networth individuals and businesses.

VALUES

Integrity, Professionalism, Excellence, Loyal & dedicated staff,

Innovation, Shareholder value.


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Strategy & Products

The bank's business model targets corporates, institutions and high networth & potential high net worth individuals.

The bank also targets SMEs with a view of growing them into strong

economic players.

The Bank operates through strategic placement of 10 service centres at

key commercial and industrial locations in the major cities of Harare,

Bulawayo, Gweru and Mutare.


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Strategy & Products

The bank offers the following services:

Corporate Banking SMEs Banking

Agribusiness

Personal Banking services

Treasury

International Banking

Mortgage Finance

Lease Finance

International Visa Cards

Corporate Finance & Advisory Services


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Financial highlights

31 Dec 2012 31 Dec 2011

Cost/Income 72% 76%

Capital adequacy 15.50% 14.37%

Annualized Return on Average Equity 28% 22%

Impairment Provisions/Loans and advances 4.8% 2.8%


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Financial Highlights

31%

5%

22%

28%

0%

5%

10%

15%

20%

25%

30%

35%

31/12/2009

31/12/2010

31/12/2011

31/12/2012

Return on Average Equity 2009 - 2012

Return on average equity

Adjusted ROE =20%

Affected by Retrenchment

exercise


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Cost to Income ratios - 2009 to 2012

Affected by Retrenchment

exercise

Adjusted = 77%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

31/12/2009 31/12/2010 31/12/2011 31/12/2012

89% 95%

76% 72%

Cost to income ratio


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Financial highlights

31 Dec 2012 31 Dec 2011 % Change

Attributable profit (US$) 7 570 502 4 538 456 +67%

Basic earnings per share(US cents) 0.27 0.16 +69%

Asset base (US$) 226 533 682 167 287 333 +35%Net asset value per share (US cents) 1.10 0.83 +33%

Gross loans and advances (US$) 152 417 375 119 596 646 +27%

Total deposits (US$) 191 422 066 139 226 144 +37%

Total Equity (US$) 30 942 083 23 371 581 +32%


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Consolidated statement of comprehensive income

31 Dec 2012 31 Dec 2011 % Change

Net interest income 17 493 781 14 259 934 +23%Net foreign exchange gains 1 902 337 1 289 729 +47%

Share of profit of associate 434 252 113 573 +282%

Non-interest income 15 609 630 9 830 798 +59%

-------------- -------------- ------

Net operating income 35 440 000 25 494 034 +39%

Operating expenditure (21 452 714) (17 004 270) +26%

Impairment losses on loans (3 985 062) (2 296 111) +74%

------------- ------------- -------

Profit before taxation 10 002 224 6 193 653 +61%

Taxation (2 431 722) (1 655 197) +47%

------------- ------------- -------

Profit after taxation 7 570 502 4 538 456 +67%

Other comprehensive income - - --------------- ------------- --------

Total comprehensive income 7 570 502 4 538 456 +67%

========= ========= =====


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Consolidated statement of financial position

31 Dec 2012 31 Dec 2011 % Change

Total Equity 30 942 083 23 371 581 32%

Deposits 191 422 066 139 226 144 37%

Other liabilities 4 169 533 4 689 608 (11%)

----------------- ---------------- --------

Total Equity & liabilities 226 533 682 167 287 333 35%

========== ========== ======

Cash and cash equivalents 58 171 045 32 265 953 80%

Investment securities heldto maturity 5 501 963 2 126 657 159%

Loans and advances 152 417 375 119 596 646 27%

Provisions for impairment (8 469 178) (4 402 095) 92%

Non-current assets held

for sale 2 225 300 - 100%

Investment Properties 3 115 300 2 510 000 24%

Property & equipment 8 187 459 6 801 982 20%

Other assets 5 384 418 8 388 190 (36%)

--------------- ---------------- --------

Total assets 226 533 682 167 287 333 35%

=========== ========== =====


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Future Growth Drivers

Sourcing International Lines of Credit to support the

productive sectors of the economy. Support the SMEs sector to become a key growth driver.

Mobilise resources to support key infrastructure such asenergy, transport, water e.t.c.

Uphold highest Corporate Governance standards andstrong risk management systems.

Foster sustainability and environmental awareness in ourbusiness and all the businesses that we support, toinclude broader social, economic and responsible finance

issues.


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Contact Details

NMBZ Head Office

First Floor, 64 Unity Court Building,

Corner Kwame Nkrumah Avenue/First Street

Harare, Zimbabwe

Tel: (+263-4) 759651-9

Key Contacts

James A Mushore, Group Chief Executive Officer, NMBZ Holdings Limited,

[email protected]

Francis Zimuto, Deputy Group Chief Executive Officer, NMBZ Holdings Limited,

[email protected]

Benefit Peter Washaya, Managing Director, NMB Bank Limited, [email protected]

Benson Ndachena, Chief Financial Officer, NMBZ Holdings Limited, [email protected]

Website: http://www.nmbz.co.zw

Email: [email protected]


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Questions and Answers

Thank You

Documents

NMBZ Imara Investment Conference Presentation June 2013