NMBZ Holdings Ld
22 March 2007
NMBZ HOLDINGS LIMITED
Holding company of
NMB BANK LIMITED (Registered Commercial Bank)
AUDITED INFLATION ADJUSTED AND HISTORICAL COST RESULTS FOR THE YEAR ENDED 31
DECEMBER 2006
HIGHLIGHTS
Inflation Adjusted 2006 2005 % Change
Attributable profit (Z$ 000's) 572 225 3 044 810 -81
Basic earnings per share (cents) 52 611 -91
Total deposits (Z$ 000's) 48 962 455 31 915 917 +53
Shareholders' funds (Z$ 000's) 13 807 388 11 287 824 +22
Dividend per share (cents) 65 - +100
Historical
Attributable profit (Z$ 000's) 6 989 049 325 389 +2 048
Basic earnings per share (cents) 635 65 +877
Total deposits (Z$ 000's) 48 962 455 2 310 882 +2 019
Shareholders' funds (Z$ 000's) 8 102 119 398 749 +1 932
Dividend per share (cents) 65 - +100
Dr Gibson Manyowa Mandishona, the Chairman of NMBZ Holdings, said:
'The Group's capacity was enhanced by the return of confidence to the banking
sector during the period under review and buttressed by a well supported rights
issue. The vibrancy of the business model and the continuing support from
stakeholders, especially customers, should assist in confronting the business
challenges expected in 2007'.
Enquiries:
NMBZ HOLDINGS LIMITED Tel: +263-4-759 651/9
David T Hatendi, Chief Executive Officer davidh@nmbz.co.zw
Benson Ndachena, Chief Financial Officer bensonn@nmbz.co.zw
Website: www.nmbz.co.zw
Email: enquiries@nmbz.co.zw
CHAIRMAN'S STATEMENT
The year under review was characterised by:
• Rising inflation
• Increased money supply growth
• High domestic and external debt
• Fluctuating and negative interest rates
• Foreign currency, fuel and power shortages
• Shrinking production base
• Negative GDP growth
• Introduction of Financial Sector Stabilisation Bonds (FSSB) and
further Monetary Policy fine tunings
GROUP INFLATION ADJUSTED RESULTS
Introduction
In accordance with International Financial Reporting Standards (IFRS's)
promulgated by the International Accounting Standards Board (IASB), the Group
continues to prepare its results using hyperinflationary accounting with
historical results being provided as a supplement. Unless otherwise stated,
figures in this statement are inflation adjusted.
Compliance with International Financial Reporting Standards
The existence of hyperinflation as defined by International Accounting Standard
(IAS) 29 was formally identified in Zimbabwe by the Zimbabwe Accounting
Practices Board, which decided that IAS 29 would be applied for financial
periods beginning on or after 1 January 2000. Consequently, these results have
been prepared in compliance with IAS 29, which requires the adjustment of the
financial statements on the basis of the inflation indices over the reporting
period, and a restatement of prior year comparative figures.
Commentary on results
The inflation adjusted profit before taxation reduced from Z$5 194 million to
Z$1 645 million during the period under review. The Group recorded an inflation
adjusted attributable profit of Z$572 million compared to Z$3 045 million for
the same period last year. A historical cost attributable profit of Z$6 989
million was recorded compared to Z$325 million for 2005. Net interest income
increased by 129% to Z$16 763 million from Z$7 305 million. The increase was
primarily as a result of significant positive margins during the second half.
Non-interest income increased by 42% to Z$6 603 million (2005 - Z$4 657 million)
and contributed 27% (2005 - 27%) of the net operating income.
Operating expenses, on an inflation adjusted basis, increased by 12% to Z$9 557
million from Z$8 566 million over the same period last year.
The loss on net monetary position occurs as a result of the restatement of
amounts to current value. The loss of Z$12 899 million is based on the
inflation index as provided by the Central Statistical Office of Zimbabwe. The
loss has been charged to income in accordance with the IAS 29 'Reporting in
Hyperinflationary Economies'.
While a conservative approach continues to be taken with respect to provisions
for bad and doubtful debts, on an inflation adjusted basis, a decrease in the
provisions from Z$450 million in the previous year to Z$125 million was
recorded. This is reflective of the decline in advances and other accounts
which on an inflation adjusted basis, decreased from Z$14 550 million to Z$13
856 million, as well as a prudent lending policy in an uncertain environment.
Dividend
In light of the need to conserve cash in the business, the Board has proposed a
scrip dividend alternative to the cash dividend of 65 cents per share. This
decision was arrived at taking into account shareholder expectations and the
need to ensure sustainable organic growth in view of the expected challenges
which may confront the company in 2007.
BALANCE SHEET
The Group's total asset base, on an inflation adjusted basis, increased by 33%
from Z$51 937 million at 31 December 2005 to Z$68 987 million. The increase was
mainly caused by a rise in financial assets at fair value through profit and
loss (+43%), available-for-sale securities (+146%), balances with banks and cash
(+11%). Financial assets at fair value through profit and loss grew mainly as
a result of the increase in the Treasury Bills portfolio.
Capital
The banking subsidiary's capital adequacy ratio at 31 December 2006 calculated
on the historical cost basis in accordance with the guidelines of the Reserve
Bank of Zimbabwe (RBZ) was 30.02% (31 December 2005 - 22.52%). The minimum
required by the RBZ is 10%.
The Bank complied with the RBZ's requirement of a minimum capital base of Z$1
billion after a well supported rights issue in August 2006 which raised Z$1
billion net of issue expenses. The Group will continue to monitor and manage
its capital base in view of market and economic developments.
OUTLOOK AND STRATEGY
The return of confidence to the banking sector, buttressed by a well supported
rights issue in August 2006, this has strengthened the Bank's capacity to
underwrite more business. The vibrancy of the business model and the continuing
support from stakeholders, especially customers, should assist in confronting
the business challenges expected in 2007. There has already been a remarkable
increase in deposits during the year and this trend is expected to continue in
2007.
We remain cognisant of the need for the continued enhancement of our delivery
channels and a number of prospects are currently under active consideration.
DIRECTORATE
It is with great sadness that the Group notes the passing away of Mr Mario dos
Remedios on 10 December 2006. His wise counsel and valuable contributions to
NMBZ Holdings Limited will be greatly missed.
Subsequent to the financial year end, Mr Benson Ndachena was appointed the Chief
Financial Officer of NMBZ Holdings Limited and NMB Bank Limited on 8 January
2007. I would like to welcome Mr Ndachena to the Board and wish him a fruitful
tenure.
APPRECIATION
I would like to thank our clients and the Monetary Authorities for the
invaluable support during the year under review, which was particularly
challenging in many respects. I would also like to express my appreciation to
my fellow Board members, management and staff for achieving these results under
very difficult conditions.
GIBSON MANYOWA MANDISHONA
CHAIRMAN
21 March 2007
NMB BANK LIMITED: CORPORATE GOVERNANCE AND RISK MANAGEMENT
1. RESPONSIBILITY
These financial statements are the responsibility of the directors. This
responsibility includes the setting up of internal control and risk management
processes, which are monitored independently.
2. CORPORATE GOVERNANCE
The Group adheres to principles of corporate governance derived from the King II
Report, the United Kingdom Combined Code and RBZ corporate governance
guidelines. The Group is cognisant of its duty to conduct business with due
care and in good faith in order to safeguard all stakeholders' interests.
3. BOARD OF DIRECTORS
Board appointments are made to ensure a variety of skills and expertise on the
Board. Non-executive directors are of such calibre as to provide independence
to the Board. The Chairman of the Board is a non-executive director. The Board
is supported by various committees in executing its responsibilities. The Board
meets at least quarterly to assess risk, review performance and provide guidance
to management on both operational and policy issues.
4. RISK MANAGEMENT
In the ordinary course of business the Group manages risks of all forms
especially operational, market, liquidity and credit risks. These risks are
identified and monitored through various channels and mechanisms. The risk
management department which reports to the Chief Executive Officer, is
responsible for the management of the overall risk profile.
The Group's main objective is to contain the risks inherent within the financial
services sector and to ensure that the Group's various risk profiles are
understood and appropriately managed to the benefit of customers, shareholders
and other stakeholders.
4.1 Operational risk
This risk is inherent in all business activities and is the potential for loss
arising from ineffective internal controls, poor operational procedures to
support these controls, errors and deliberate acts of fraud. The balancing of
the risk and the cost incurred to reduce the risk is critical. The Board has an
Audit Committee whose function is to ensure that this risk is minimised. The
Audit Committee through the internal audit function assesses the adequacy of the
internal controls and makes the necessary recommendations to the Board.
4.2 Market risk
This arises from adverse movements in the money market (interest rate risk),
foreign exchange and equity markets in which the Group operates. The Group has
in place an Asset and Liability Management Committee (ALCO), which comprises the
departmental heads of Risk, Treasury, Corporate and Retail Banking and Finance,
in addition to executive directors. The committee monitors these risks and
recommends the appropriate levels to which the Group should be exposed at any
time. The approval of all dealing limits ultimately rests with this committee.
4.3 Liquidity risk
The management of liquidity in the Group is primarily designed to ensure that
the Group meets its obligations timeously. The Treasury Department in
consultation with ALCO formulates and applies appropriate investment methods and
instruments to ensure that this is achieved. In pursuance of the management of
this risk, the Risk Management Department periodically reports on facility
utilisations and excesses that need management attention.
4.4 Credit risk
The Board has put in place sanctioning committees which operate according to the
amount requested by an applicant. The Risk Management Department reviews all
applications. This initial review allows only those applications that do not
unduly expose the group to be considered by the sanctioning committees.
4.5 Legal risk
Legal risk is risk from uncertainty due to legal actions or uncertainty in the
applicability or interpretation of contracts, laws or regulations. Legal risk
may entail such issues as contract formation, capacity and contract frustration.
To manage this risk the Group employs a legal practitioner who is responsible
for the drafting, monitoring and execution of all contracts. Permanent
relationships are also maintained with firms of legal practitioners and access
to legal advice is readily available to all departments. The compliance
function is also responsible for identifying and monitoring legal risk and
ensuring that the Group remains in compliance with all regulatory requirements.
4.6 Reputational Risk
Reputational risk is the risk of loss of business as a result of negative
publicity or negative perceptions by the market with regards to the way the
Group can conduct its business. To manage this risk, the Group strictly
monitors customer's complaints, continuously train staff at all levels, conducts
market surveys and periodic reviews of business practices through its internal
audit department.
The directors are satisfied with the risk management processes in the Group as
these have contributed to be minimisation of losses arising from risk exposures.
5. REGULATORY COMPLIANCE
During the period under review the Bank was fined Z$50 000 by the RBZ for late
arrival at cheque clearing on 20 December 2006.
The Corrective Order issued by the RBZ in September 2004 was lifted on 20
December 2006.
The Group remains committed to complying with and adhering to all regulatory
requirements.
CONSOLIDATED INCOME STATEMENTS
year ended 31 December 2006
INFLATION ADJUSTED HISTORICAL
Note 2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Interest income 4 42 959 005 18 027 789 18 338 478 688 717
Interest expense 5 (26 195 982) (10 723 007) (9 829 242) (402 572)
Net interest income 16 763 023 7 304 782 8 509 236 286 145
Net foreign exchange gains 860 746 5 008 802 163 806 212 056
Non-interest income 6 6 603 202 4 656 935 4 703 253 246 248
Net operating income 24 226 971 16 970 519 13 376 295 744 449
Operating expenditure 7 (9 557 307) (8 566 247) (3 631 652) (221 038)
Impairment losses on loans and advances (125 391) (449 759) (125 391) (32 565)
Loss on net monetary position (12 898 848) (2 760 045) - -
Profit before taxation 1 645 425 5 194 468 9 619 252 490 846
Taxation 8 (727 788) (1 825 990) (2 284 791) (142 022)
Financial institutions levy 8 (345 412) (323 668) (345 412) (23 435)
Profit for the year 572 225 3 044 810 6 989 049 325 389
Earnings/(Loss) per share (cents)
- Basic 10 52 611 635 65
- Headline 10 (267) 590 316 58
- Diluted basic 10 43 237 531 25
- Diluted headline 10 (223) 229 265 22
CONSOLIDATED BALANCE SHEETS
year ended 31 December 2006
INFLATION ADJUSTED HISTORICAL
Note 2006 2005 2006 2005
Shareholders' funds Z$ '000 Z$ '000 Z$ '000 Z$ '000
Share capital 11 4 118 209 4 117 802 392 213
Capital reserves 11 14 255 380 12 212 963 896 519 86 892
Revenue reserves (4 566 201) (5 042 941) 7 205 208 311 644
Total shareholders' funds 13 807 388 11 287 824 8 102 119 398 749
Liabilities
Deposits and other accounts 12 38 643 741 28 611 150 38 643 741 2 067 892
Financial liabilities 13 12 454 310 7 473 178 12 454 310 541 098
Provision for current taxation 413 003 300 710 413 003 21 773
Acceptances 108 61 390 108 4 445
Deferred taxation 3 668 086 4 202 309 1 131 424 108 644
68 986 636 51 936 581 60 744 705 3 142 601
Assets
Cash and cash equivalents 14 14 297 224 12 897 737 14 297 224 933 865
Financial assets at fair value through 13
profit and loss
19 966 706 13 930 022 19 966 706 1 008 608
Available-for-sale securities 13 1 182 551 481 415 1 182 551 34 857
Financial assets held-to-maturity 13 7 029 450 - 7 029 450 -
Advances and other accounts 15 13 855 699 14 549 631 13 855 699 1 053 471
Non-current assets held-for-sale 17 - 553 827 - 40 100
Customers' indebtedness for acceptances 108 61 390 108 4 445
Trade investment 16 6 350 28 548 6 350 2 067
Quoted and other investments 52 132 31 476 52 132 2 279
Investment properties 18 4 200 000 552 445 4 200 000 40 000
Property and equipment 19 8 396 416 8 850 090 154 485 22 909
68 986 636 51 936 581 60 744 705 3 142 601
CONSOLIDATED INFLATION ADJUSTED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2006
Capital Reserves Revenue
Reserves
Capital
Share Share Statutory Redemption Revaluation Accumulated
Capital Premium Reserve Reserve Reserve Other Profit/(loss) Total
Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000
Balances at 1
January
2006 4 117 802 10 817 513 522 296 790 356 52 468 30 330 (5 042 941) 11 287 824
Net profit
for the
year - - - - - - 572 225 572 225
Shares issued
rights issue 389 2 333 237 - - - - - 2 333 626
Share issue
expenses - (131 411) - - - - - (131 411)
Shares issued
- share options 18 29 465 - - - (10 412) - 19 071
Additional impairment
losses on loans and
advances as per RBZ
grading - - - - - - (138 183) (138 183)
Deferred tax on
impairment losses on
loans and
advances - - - - - - 42 698 42 698
Share-based payments
- share options - - - - - 26 743 - 26 743
Share-based payments
- share issue - - - - - 13 408 - 13 408
Fair value loss on
available-for-sale
securities - - - - - (316 373) - (316 373)
Deferred tax on
available-for-sale
securities - - - - - 97 760 - 97 760
Dividends paid - - - - - - - -
------------- -------------- -------------- ------------- ------------ ---------- --------------- --------------
Balances at 31
December
2006 4 118 209 13 048 804 522 296 790 356 52 468 (158 544) (4 566 201) 13 807 388
======== ======== ========= ======== ======== ======= ========= ========
CONSOLIDATED INFLATION ADJUSTED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2005
Capital Reserves Revenue
Reserves
Capital
Share Share Statutory Redemption Revaluation Accumulated
Capital Premium Reserve Reserve Reserve Other Profit/(loss) Total
Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000
Balances as at
1 January 2005
- as previously
reported 4 116 062 9 833 691 522 296 790 356 52 468 10 800 (8 027 797) 7 297 876
Effect of
implementation of
revised IAS18 - - - - - - (59 954) (59 954)
------------ ------------- ------------ ------------- ------------ ----------- --------------- ------------
Balances as at
1 January
2005 4 116 062 9 833 691 522 296 790 356 52 468 10 800 (8 087 751) 7 237 922
Profit for
year - 3 044 810 3 044 810
Shares-issued
- rights
issue 1 740 983 822 - - - - - 985 562
Share-based
payments - - - - - 58 007 - 58 007
Fair value
loss on
available-for- sale
securities - - - - - (55 686) - (55 686)
Deferred tax on
available-for-sale
securities - - - - - 17 209 - 17 209
Dividends paid - - - - - - - -
------------- --------------- -------------- ------------- ------------- ------------ --------------- --------------
Balances at
31 December
2005 4 117 802 10 817 513 522 296 790 356 52 468 30 330 (5 042 941) 11 287 824
======== ========= ========= ======== ======== ======== ========= ========
CONSOLIDATED HISTORICAL COST STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2006
Capital Reserves Revenue
Reserves
Capital
Share Share Statutory Redemption Revaluation Accumulated
Capital Premium Reserve Reserve Reserve Other Profit/(loss) Total
Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000
Balances at
1 January
2006 213 85 137 23 27 53 1 652 311 644 398 749
Net profit
for the year - - - - - - 6 989 049 6 989 049
Shares issued
-rights issue 172 1 032 383 - - - - - 1 032 555
Share issue
expenses - (58 145) - - - - - (58 145)
Shares issued
- share options 7 16 430 - - - (2 579) - 13 858
Additional impairment
losses on loans and
advances as per
RBZ grading - - - - - - (138 183) (138 183)
Deferred tax on impairment
losses on loans and
advances - - - - - - 42 698 42 698
Share-based
payments
-share options - - - - - 26 743 - 26 743
Share-based
payments
-share issue - - - - - 13 408 - 13 408
Fair value loss on
available-for-sale
securities - - - - - (316 373) - (316 373)
Deferred tax on
available-for-sale
securities
adjustment - - - - - 97 760 - 97 760
Dividend paid - - - - - - - -
---------- -------------- ----------- ------------ ------------ ---------- ------------- ----------
Balances at
31 December
2006 392 1 075 805 23 27 53 (179 389) 7 205 208 8 102 119
======= ========= ======= ======== ======== ======== ======== ========
CONSOLIDATED HISTORICAL COST STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2005
Capital Reserves Revenue
Reserves
Capital
Share Share Statutory Redemption Revaluation Accumulated
Capital Premium Reserve Reserve Reserve Other Profit/(loss) Total
Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000
Balances at
1 January 2005 as
previously
reported 107 24 907 23 27 53 238 (13 112) 12 243
Effect of
implementation of
revised IAS18 - - - - - - (633) (633)
-------------- ------------- ------------- ------------ ------------ ---------- -------------- ---------
Balances as at
1 January 2005 107 24 907 23 27 53 238 (13 745) 11 610
Net profit for
the year - - - - - - 325 389 325 389
Shares issued
-rights issue 106 63 914 - - - - - 64 020
Share issue
expenses (3 684) - - - - - (3 684)
Share-based
payments - - - - - 4 200 - 4 200
Fair value loss on
available-for-sale
securities - - - - - (4 032) - (4 032)
Deferred tax on
available-for-sale
securities
adjustments - - - - - 1 246 - 1 246
Dividends paid - - - - - - - -
--------------- -------------- ------------- ------------- ------------ ---------- --------------- ----------
Balances at
31
December 2005 213 85 137 23 27 53 1 652 311 644 398 749
========= ========= ======== ========= ========= ======== ========== =========
CONSOLIDATED CASH FLOW STATEMENTS
for the year ended 31 December 2006
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
CASH FLOWS FROM OPERATING ACTIVITIES Z$ '000 Z$ '000 Z$ '000 Z$ '000
Profit before taxation and monetary position 14 544 273 7 954 513 9 619 252 490 846
Non-cash items
(Profit)/loss on disposal of property and equipment (5 831) 258 282 (7 915) (4 338)
Depreciation 757 580 1 802 588 10 960 5 027
Impairment losses on loans and advances 125 391 449 760 125 391 32 565
Impairment on non-financial assets 39 267 70 823 39 267 5 128
Share-based payments - share options 26 743 58 007 26 743 4 200
Loss on disposal of investment property - 267 922 - 1 708
Loss on net monetary position (12 898 848) (2 760 045) - -
Operating cash flows before changes in operating
assets and liabilities 2 588 575 8 101 850 9 813 698 535 136
Changes in operating assets and liabilities
Financial liabilities 4 981 132 3 323 495 11 913 212 497 289
Deposits and other accounts 10 032 593 (17 176 910) 36 575 851 1 584 500
Advances and other accounts 390 380 16 144 445 (13 105 071) (761 625)
Financial assets at fair value through profit and loss (6 036 684) (11 608 384)(18 958 098) (984 098)
Financial assets held-to-maturity (7 029 450) - (7 029 450) -
Available-for-sale securities (1 017 511) (537 101) (1 464 069) (38 889)
Investment properties (3 093 728) 2 322 688 (4 119 900) (43 900)
Trade Investments 22 198 21 559 (4 282) (1 536)
Quoted and other investments (20 656) 58 007 (49 853) (1 328)
816 849 649 649 13 572 038 785 549
Taxation
Corporate tax paid (1 353 980) (842 229) (1 075 735) (38 462)
Net cash (outflow)/inflow from operating activities (537 131) (192 580) 12 496 303 747 087
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds on disposal of property and equipment 18 641 250 935 7 932 6 053
Purchase of property and equipment (316 717) (143 442) (142 552) (4 022)
Property, plant and equipment prior year adjustment - 296 497 - 884
Proceeds on disposal of quoted and other investments - 580 - 6
Net cash (outflow)/inflow from investing activities (298 076) 404 570 (134 620) 2 921
Net cash (outflow)/inflow before financing activities (835 207) 211 990 12 361 683 750 008
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares - rights issue 2 202 215 985 563 974 410 60 336
Proceeds from issue of shares - share options 19 071 - 13 858 -
Share-based payments - share issue 13 408 - 13 408 -
Dividends paid - - - -
2 234 694 985 563 1 001 676 60 336
Net increase in cash and cash equivalents 1 399 487 1 197 553 13 363 359 810 344
Cash and cash equivalents at beginning of year 12 897 737 11 700 184 933 865 123 521
Cash and cash equivalents at the end of the year (note 14) 14 297 224 12 897 737 14 297 224 933 865
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2006
__________________________________________________________________________________________________
NOTES TO THE FINANCIAL STATEMENTS
1. REPORTING ENTITY
The Company is incorporated and domiciled in Zimbabwe and is an investment
holding company and its registered office is 64 Kwame Nkrumah Avenue, Harare.
Its principal operating subsidiary is engaged in banking and other companies
hold property. The details of the Bank's non-operating subsidiary are shown
under note 'f' to the Bank's accounts. The consolidated financial statements of
the bank as at and for the year ended 31 December 2006 comprise the bank and its
subsidiary.
2. BASIS OF PREPARATION
2.1 Statement of compliance
The consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRSs), and interpretations adopted
by the International Accounting Standards Board, and the requirements of the
Companies Act (Chapter 24:03) and the Banking Act (Chapter 24:20).
The financial statements were approved by the Board of Directors on 21 March
2007.
2.2 Historical cost convention
The financial statements are prepared under the historical cost convention and
adjusted to reflect the changes in general price levels in accordance with IAS
29, Financial Reporting in Hyperinflationary Economies except for quoted and
other investments, investment property and financial instruments carried at fair
value.
2.3 Functional and presentational currency
These consolidated financial statements are presented in Zimbabwe dollars, which
is the Group's functional currency. Except as indicated, financial information
presented in Zimbabwe dollars has been rounded to the nearest thousand.
2.4 Use of estimates and judgments
The preparation of financial statements requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and
the reported amounts of assets, liabilities, income and expenses. Actual
results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised and in any future periods affected.
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2006
__________________________________________________________________________________________________
3. ACCOUNTING POLICIES
3.1 Inflation Accounting
The economy of Zimbabwe is considered to be a hyperinflationary economy. In
order to comply with IAS 29, Financial Reporting in Hyperinflationary Economies,
financial statements need to be expressed in terms of the measuring unit current
at the balance sheet date. Accordingly, the accompanying financial statements,
including comparatives, have been to account for changes in the general
purchasing power of the Zimbabwe dollar. The restatement is based on the
consumer price index at the balance sheet date. The indices and conversion
factors are derived from the inflation rates which are issued by the Central
Statistical Office of Zimbabwe. The indices and conversion factors used were as
follows:
Dates Indices Conversion factors
31 December 2005 665 774.10 1.0000
31 December 2004 48 205.60 13.8111
31 December 2003 7 028.70 94.7222
3.2 Financial instruments
3.2.1 Classification
Financial assets and liabilities at fair value through profit and
loss include financial assets and liabilities held for trading i.e. those that
the Group principally holds for the purpose of short-term profit taking as well
as those that were, upon initial recognition, are designated by the entity as
financial assets or liabilities at fair value through profit and loss. There is
no reclassification into or out of this category as per IAS 39.
Loans and receivables are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market other than those
classified as held-for-trading and the Group upon initial recognition designates
as at fair value through profit or loss and those the Group upon initial
recognition designates as available for sale.
Held-to-maturity investments are non-derivative financial assets with fixed or
determinable payments and fixed maturity that the Group has the positive
intention and ability to hold to maturity.
Financial assets available-for-sale are non-derivative financial assts that are
designated as available for sale or are not classified as loans and receivables,
held-to-maturity investments or financial assets at fair value through profit or
loss.
3.2.2 Recognition
The Group recognises financial assets at fair value through profit and loss and
available for sale assets on the date it commits to purchase the assets. From
this date any gains and losses arising from changes in fair value of the assets
are recognised in the income statement and equity respectively.
Held-to-maturity investments and loans and receivables are recognised at cost
which is the fair value of the consideration given on the day that they are
transferred to the Group.
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2006
__________________________________________________________________________________________________
3.2.3 Measurement
Financial assets and liabilities are measured initially at fair value.
Subsequent to initial recognition, financial assets and liabilities at fair
value through profit and loss and available for sale financial assets are
measured at fair value, except that any instrument that does not have a quoted
market price in an active market and whose fair value cannot be reliably
measured is stated at cost, less impairment losses.
Held-to-maturity investments and loans and receivables are measured at amortised
cost less impairment losses. Amortised cost is calculated using the effective
interest rate method. Premiums and discounts, including initial transaction
costs, are included in the carrying amount of the related instrument and
amortised based on the effective interest rate of the instrument.
3.2.4 Fair value measurement principles
The fair value of financial instruments is based on their quoted market price at
the balance sheet date without any deduction for transaction costs. If a quoted
market price is not available, the fair value of the instrument is estimated
using pricing models or discounted cash flow techniques.
Where discounted cash flow techniques are used, estimated future cash flows are
based on management's best estimates and the discount rate is a market related
rate at the balance sheet date for an instrument with similar terms and
conditions. Where pricing models are used, inputs are based on market related
measures at the balance sheet date.
The fair value of derivatives that are not exchange-traded is estimated at the
amount that the Group would receive or pay to terminate the contract at the
balance sheet date taking into account current market conditions and the current
credit worthiness of the counterparties.
3.3 Investment properties
Investment properties are stated at fair value. Gains and losses arising from a
change in fair value of investment properties are recognized in the income
statement.
3.4 Share - based payments
The Group issues share options to certain employees in terms of the Employee
Share Option Scheme. Share options are measured at fair value at the date of
grant. The fair value determined at the date of grant of the options is
expensed on a straight-line basis over the vesting period, based on the Group's
estimate of shares that will eventually vest. Fair value is measured using the
Black-Scholes option pricing model. The expected life used in the model has
been adjusted, based on management's best estimate, for the effects of
non-transferability, exercise restrictions and other behavioural considerations.
3.5 Property and equipment
International Accounting Standard 16 (IAS 16) stipulates that the residual value
and the useful life of an asset must be reviewed at least each financial
year-end. If the residual value of an asset increases by an amount equal to or
greater than the asset's carrying amount, then the depreciation of the asset
ceases. Depreciation will resume only when the residual value decreases to an
amount below the asset's carrying amount.
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2006
4 INTEREST INCOME INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Cash and cash equivalents 31 164 98 805 5 774 3 796
Loans and advances to banks 352 487 181 961 236 342 3 510
Loans and advances to customers 13 090 407 8 363 955 3 763 747 244 165
Investment securities 29 482 128 9 381 231 14 331 569 437 174
Other 2 819 1 837 1 046 72
42 959 005 18 027 789 18 338 478 688 717
5 INTEREST EXPENSE INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
RBZ Liquidity Support - 3 980 576 - 55 366
Statutory reserves (1 667 393) 3 166 195 (120 728) 229 177
Trading activities 27 863 375 3 577 236 9 949 970 118 029
26 195 982 10 723 007 9 829 242 402 572
The financial obligation with respect to interest on statutory reserves
of Z$229 177 000 for 2005 and Z$421 302 000 for 2006 as reported in financial
statements for the year ended 31 December 2005 was satisfactorily resolved
during the first half, resulting in a credit adjustment during the period under
review.
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
6. NON-INTEREST INCOME Z$ '000 Z$ '000 Z$ '000 Z$ '000
Net gains from quoted and other
investments 49 852 1 146 49 852 82
Net commission and fee income 2 219 414 1 158 614 443 371 49 502
Fair value adjustment on investment properties 4 119 900 606 309 4 119 900 43 900
Fair value adjustment on trade investments 4 282 21 214 4 282 1 536
Profit/(loss) on disposal of property and equipment 5 831 (258 282) 7 915 4 338
Loss on disposal of investment property - (267 922) - (1 708)
Rent received 284 207 100 1 583
Other net operating income 203 639 2 995 649 77 833 147 015
6 603 202 4 656 935 4 703 253 246 248
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2006
__________________________________________________________________________________________________
7. OPERATING EXPENDITURE
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
The operating profit is after charging the
following:-
Administration costs 3 556 374 3 033 547 1 474 674 96 186
Depreciation 757 580 1 802 588 10 960 5 027
Staff costs 5 243 353 3 730 112 2 146 018 119 825
9 557 307 8 566 247 3 631 652 221 038
8. TAXATION
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Tax Charge Z$ '000 Z$ '000 Z$ '000 Z$ '000
Current taxation 1 088 895 478 763 1 088 895 34 665
Aids levy 32 658 14 350 32 658 1 039
Deferred tax (credit)/charge (393 765) 1 332 877 1 163 238 106 318
727 788 1 825 990 2 284 791 142 022
Financial institutions levy 345 412 323 668 345 412 23 435
Total taxation 1 073 200 2 149 658 2 630 203 165 457
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2006
__________________________________________________________________________________________________
9. IMPAIRMENT LOSSES ON LOANS AND ADVANCES
Impairment losses are applied to write off advances in part or in whole
when they are considered wholly or partly irrecoverable. The aggregate
impairment losses which are made during the year are dealt with as per paragraph
9.3.
9.1 Specific provisions
Specific provisions are made where the repayment of identified advances is in
doubt and reflect estimates of the loss. Advances are written off against
specific provisions once the probability of recovering any significant amounts
becomes remote.
9.2 Portfolio provisions
The portfolio provision relates to the inherent risk of losses which,
although not separately identified, is known to be present in any loan
portfolio.
9.3 Regulatory Guidelines and International Accounting Standards
requirements
The Banking Regulations 2000 gives guidance on provisioning for doubtful debts
and stipulates certain minimum percentages to be applied to the respective
categories of the loan book.
International Accounting Standard 39, Financial Instruments Recognition
and Measurement (IAS 39), prescribes the provisioning for impairment losses
based on the actual loan losses incurred in the past applied to the sectoral
analysis of book debts and the discounting of expected cash flows on specific
problem accounts.
The two prescriptions are likely to give different results. The Group
has taken the view that where the IAS 39 charge is less than the amount provided
for in the Banking Regulations, the difference is charged against equity and
where it is more, the full amount will be charged to the income statement.
9.4 Non-performing loans
Interest on loans and advances is accrued to income until such time as
reasonable doubt exists about its collectability, thereafter and until all or
part of the loan is written off, interest continues to accrue on customers'
accounts but is not included in income. Such suspended interest is deducted
from loans and advances in the balance sheet. This policy meets the
requirements of the Banking Regulations 2000 issued by the RBZ.
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2006
__________________________________________________________________________________________________
10. EARNINGS PER SHARE
The calculation of earnings per share is based on the following figures:-
10.1 Earnings/(losses)
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Basic 572 225 3 044 810 6 989 049 325 389
Headline earnings (note 10.4) (2 933 719) 2 935 646 3 481 665 286 528
INFLATION ADJUSTED HISTORICAL
10.2 Number of shares 2006 2005 2006 2005
Weighted average shares in issue 1 100 130 612 497 938 947 1 100 130 612 497 938 947
Diluted number of shares 1 315 815 222 1 284 428 108 1 315 815 222 1 284 428 108
10. 3 Earnings/(loss) per share (cents)
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Basic 52 611 635 65
Headline (267) 590 316 58
Diluted basic 43 237 531 25
Diluted headline (223) 229 265 22
10.4 Headline earnings
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Profit attributable to shareholders 572 225 3 044 810 6 989 049 325 389
(Deduct)/add non-recurring items:
- (Profit)/loss on disposal of property and equipment (5 831) 258 282 (7 915) (4 338)
- Fair value adjustment on investment properties (4 119 900) (606 309) (4 119 900) (43 900)
- Loss on disposal of investment property - 267 922 - 1 708
- Tax effect thereon 619 787 (29 059) 620 431 7 669
(2 933 719) 2 935 646 3 481 665 286 528
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2006
__________________________________________________________________________________________________
11. SHARE CAPITAL
HISTORICAL AND INFLATION ADJUSTED
GROUP AND COMPANY
2006 2005 2006 2005
11.1 Authorised Shares Shares Z$ '000 Z$ '000
Million Million
Ordinary shares of Z$0.25 (old currency) each 2 250 1 250 625 313
11.2 Issued and fully paid 2006 2005 2006 2005
Shares Shares Z$ '000 Z$ '000
Million Million
At 1 January 854 427 213 107
Shares issued - share options 27 - 7 -
Shares issued during the year - rights issue 688 427 172 106
At 31 December - Historical 1 569 854 392 213
Effect of IAS 29 - - 4 117 817 4 117 589
At 31 December Inflation adjusted 1 569 854 4 118 209 4 117 802
Of the unissued ordinary shares of 680 660 999, options which may be granted in
terms of the NMBZ 2005 Employee Share Option Scheme (ESOS) amount to 85 360 962
and out of these 38 414 869 had not been issued. As at 31 December 2006, 26 946
769 share options out of the issued had not been exercised.
Subject to the provisions of section 183 of the Companies Act (Chapter 24:03),
the unissued shares are under the control of the directors.
11.3 Capital Reserves
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Statutory reserve fund 522 296 522 296 23 23
Share premium 13 048 804 10 871 513 1 075 805 85 137
Capital redemption reserve 790 356 790 356 27 27
Revaluation reserve 52 468 52 468 53 53
Other (158 544) 30 330 (179 389) 1 652
14 255 380 12 212 963 896 519 86 892
12. DEPOSITS AND OTHER ACCOUNTS
12.1 Deposits and other accounts by type
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
RBZ Productive Sector Facility 8 135 340 3 933 853 8 135 340 284 832
RBZ - Statutory Reserves - 7 961 091 - 576 427
Deposits from other banks 7 914 465 477 657 7 914 465 34 585
Other money market deposits 12 454 419 7 628 678 12 454 419 552 357
Current and deposit accounts 20 458 231 11 914 638 20 458 231 862 681
Total deposits 48 962 455 31 915 917 48 962 455 2 310 882
Trade and other creditors 2 135 596 4 168 431 2 135 596 298 108
51 098 051 36 084 348 51 098 051 2 608 990
Less: Financial liabilities (note 13.1) (12 454 310) (7 473 178) (12 454 310) (541 098)
38 643 741 28 611 170 38 643 741 2 067 892
12.2 Maturity analysis
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Less than one month 48 693 344 31 213 864 48 693 344 2 259 760
1 to 3 months 268 137 434 415 268 137 31 454
3 to 6 months 939 267 610 939 19 666
6 months to 1 year 35 28 35 2
1 to 5 years - - - -
Over 5 years - - - -
48 962 455 31 915 917 48 962 455 2 310 882
12.3 Sectoral analysis of deposits
INFLATION ADJUSTED
2006 2005
Z$ '000 % Z$ '000 %
Banks and other financial institutions 7 914 465 16 477 657 1
Reserve Bank of Zimbabwe 8 135 340 17 11 894 944 37
Transport and telecommunications companies 3 112 590 6 1 901 954 6
Mining companies 481 780 1 387 416 2
Industrial companies 18 812 948 38 7 704 156 24
Municipalities and parastatals 5 891 - 3 052 -
Individuals 4 163 753 9 3 191 593 10
Agriculture 3 998 213 8 1 885 054 6
Other deposits 2 337 475 5 4 470 091 14
48 962 455 100 31 915 917 100
12.4 Sectoral analysis of deposits
HISTORICAL
2006 2005
Z$ '000 % Z$ '000 %
Banks and other financial institutions 7 914 465 16 34 585 1
Reserve Bank of Zimbabwe 8 135 340 17 861 259 37
Transport and telecommunications companies 3 112 590 6 137 712 6
Mining companies 481 780 1 28 051 2
Industrial companies 18 812 948 38 557 822 24
Municipalities and parastatals 5 891 - 221 -
Individuals 4 163 753 9 231 089 10
Agriculture 3 998 213 8 136 488 6
Other deposits 2 337 475 5 323 655 14
48 962 455 100 2 310 882 100
13. FINANCIAL INSTRUMENTS
13.1 Financial liabilities
Fair Inflation
Cost Value Adjusted Historical
2006 2006 2005 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Fixed term deposits 1 441 182 1 441 182 979 746 70 939
Negotiable Certificates of Deposits 7 420 848 7 420 848 1 379 052 99 851
Liabilities re-discounted 3 592 280 3 592 280 5 114 380 370 308
Total financial liabilities 12 454 310 12 454 310 7 473 178 541 098
13.2 Financial assets at fair value through profit and loss
Government and public sector securities 15 349 194 17 258 989 12 912 876 934 961
Treasury bills 15 216 046 17 133 114 12 208 123 883 933
Government stock 55 705 52 755 704 753 51 028
Mortgage bonds 77 443 73 120 - -
Bills - own acceptances 2 788 610 2 707 717 1 017 146 73 647
Total financial assets at fair value through profit and loss 18 137 804 19 966 706 13 930 022 1 008 608
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Fair value adjustment to profit and loss 1 828 902 1 900 780 1 828 902 137 627
13.3 Available-for-sale securities
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Treasury bills (two-year bills) 606 806 481 415 606 806 34 857
Non-negotiable certificates of deposits 575 745 - 575 745 -
1 182 551 481 415 1 182 551 34 857
13.4 Financial assets held-to-maturity
Financial sector stabilisation bonds 7 029 450 - 7 029 450 -
======== ======= ======== ========
13.5 Financial liabilities
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Less than 1 month 12 185 199 6 767 132 12 185 199 489 976
1 to 3 months 268 137 434 415 268 137 31 454
3 to 6 months 939 271 610 939 19 666
6 months to 1 year 35 21 35 2
1 to 5 years - - - -
Over 5 years - - - -
12 454 310 7 473 178 12 454 310 541 098
13.6
Financial assets at fair value through profit and loss
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Less than 1 month 5 940 200 2 999 640 5 940 200 217 190
1 to 3 months 7 330 656 873 941 7 330 656 63 278
3 to 6 months 6 089 045 3 800 811 6 089 045 275 199
6 months to 1 year 606 805 5 564 949 606 805 402 932
1 to 5 years - 690 681 - 50 009
Over 5 years - - - -
19 966 706 13 930 022 19 966 706 1 008 608
13.7
Available-for-sale securities
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Less than 1 month - - - -
1 to 3 months - - - -
3 to 6 months 3 588 - 3 588 -
6 months to 1 year 791 194 - 791 194 -
1 to 5 years 387 769 481 415 387 769 34 957
Over 5 years - - - -
1 182 551 481 415 1 182 551 34 957
13.8
Financial assets held-to-maturity
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Less than 1 month - - - -
1 to 3 months - - - -
3 to 6 months - - - -
6 months to 1 year 1 914 245 - 1 914 245 -
1 to 5 years 5 115 205 - 5 115 205 -
Over 5 years - - - -
7 029 450 - 7 029 450 -
14. CASH AND CASH EQUIVALENTS
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Balances with other banks and cash
Statutory reserve 10 424 301 6 151 852 10 424 301 445 427
Current, nostro accounts and cash 3 872 923 6 745 885 3 872 923 488 438
Total cash and cash equivalents 14 297 224 12 897 737 14 297 224 933 865
The statutory reserve balance with the Reserve Bank of Zimbabwe is non-interest
bearing. The balance is determined on the basis of deposits held and is not
available to the Bank for daily use.
15. ADVANCES AND OTHER ACCOUNTS
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
15.1.1 Advances
Fixed term loans 8 411 063 6 635 809 8 411 063 480 468
Local loans and overdrafts 4 373 958 4 329 763 4 373 958 313 498
Other accounts 1 070 678 3 584 059 1 070 678 259 505
13 855 699 14 549 631 13 855 699 1 053 471
15.1.2 Maturity analysis
Less than 1 month 4 884 024 6 908 496 4 884 024 500 212
1 to 3 months 364 479 1 661 411 364 479 120 295
3 to 6 months 518 071 1 987 547 518 071 143 909
6 months to 1 year 5 996 247 188 563 5 996 247 13 653
1 to 5 years 1 326 966 579 557 1 326 966 41 963
Over 5 years - 461 872 - 33 442
Total advances 13 089 787 11 787 446 13 089 787 853 474
Provision for impairment losses on loans and advances (299 590) (648 889) (299 590) (46 983)
Suspended interest (5 176) (172 985) (5 176) (12 525)
12 785 021 10 965 572 12 785 021 793 966
Other accounts 1 070 678 3 584 059 1 070 678 259 505
Total 13 855 699 14 549 631 13 855 699 1 053 471
Included in other accounts is the equivalent of an amount of US$1.8 million that
was outstanding at 31 December 2003 and recorded as a foreign currency amount
owing at the then market rate, which was the auction rate in January 2004 as
reported in the financial statements at 31 December 2003. This amount was
recovered and remitted to the RBZ in December 2004. The receipt was translated
at Z$6 200 (old currency) to the US$ as per an understanding with the RBZ at the
time the money was received. Subsequent to the remittance, the RBZ offered
settlement at Z$824 (old currency) to the US$, being the historical rate prior
to the introduction of the controlled foreign exchange auction system resulting
in a loss to the Bank of $9 700 000 (revalued). The Bank was informed in early
2006 that settlement was to be at a rate of Z$824 (old currency) to the US$ and
the current year results reflect this position. The Bank appealed against this
ruling and discussions are being held with the Authorities.
15.2 Sectoral analysis of utilisations
INFLATION ADJUSTED
2006 2005
Z$ '000 % Z$ '000 %
Industrials 435 363 3 4 652 530 39
Agriculture and horticulture 8 480 880 65 4 169 900 35
Conglomerates 1 166 131 9 499 148 4
Services 1 504 145 11 114 052 1
Mining 236 920 2 172 680 1
Food & Beverages 1 192 499 9 889 548 8
Other 73 957 1 1 350 978 12
13 089 895 100 11 848 836 100
The above sectoral analysis comprises advances of Z$13 089 787 000 (2005 - Z$11
787 446 000) and customers' indebtedness for acceptances of Z$108 000 (2005 - Z$61 390 000).
15.3 Sectoral analysis of utilisation
HISTORICAL
2006 2005
Z$ '000 % Z$ '000 %
Industrials 435 363 3 336 868 39
Agriculture and horticulture 8 480 880 65 301 923 35
Conglomerates 1 166 131 9 36 141 4
Services 1 504 145 11 8 258 1
Mining 236 920 2 12 503 1
Food & Beverages 1 192 499 9 64 408 8
Other 73 957 1 97 818 12
13 089 895 100 857 919 100
The above sectoral analysis comprises advances of Z$13 089 787 000 (2005 - Z$853
474 000) and customers' indebtedness for acceptances of Z$108 000 (2005 - Z$4 445 000).
The material concentration of loans and advances are in the agricultural sector
65% (2005 - 35%)
15.4 Provisions for losses on loans and advances (including acceptances)
INFLATION ADJUSTED
-------------------- 2006 ------------ 2005 -----------
Specific Portfolio Total Specific Portfolio Total
Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000
At 1 January 598 088 52 801 64 889 3 705 058 523 719 4 228 777
Charge against profits 2 621 122 770 125 391 473 321 (23 562) 449 759
Charge against retained earning - 138 183 138 183 - - -
Bad debts written off (10 967) - (10 967) (3 164 836) (447 356)(3 612 192)
Monetary adjustment (552 928) (48 978) (601 906) (417 455) - (417 455)
At 31 December 34 814 264 776 299 590 596 088 52 801 648 889
15.5 Provisions for losses on loans and advances (including acceptances)
HISTORICAL
-------------------- 2006 ------------------- 2005
Specific Portfolio Total Specific Portfolio Total
Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000
At 1 January 43 160 3 823 46 983 39 115 5 529 44 644
Charge against profits 2 621 122 770 125 391 34 271 (1 706) 32 565
Charge against retained earnings - 138 183 138 183 - - -
Bad debts written off (10 967) - (10 967) (30 226) - (30 226)
At 31 December 34 814 264 776 299 590 43 160 3 823 46 983
15.6 Non-performing loans and advances
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Total non performing loans and advances 39 990 745 511 39 990 33 267
Provision for impairment loss on loans and advances (34 814) (572 527) (34 814) (20 742)
Interest in suspense 5 176) (172 984) (5 176) (12 525)
- - - -
The residue on these accounts, where applicable, represents recoverable portions
covered by realisable security.
16. TRADE INVESTMENT
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Takura Ventures (Pvt) Ltd 4 069 28 548 4 069 2 067
Other 2 281 - 2 281 -
6 350 28 548 6 350 2 067
17. NON-CURRENT ASSETS HELD-FOR-SALE
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
As at 1 January 553 827 - 40 100 -
Transfer from investment properties - 553 827 - 40 100
Transfer to investment properties (553 827) - (40 100) -
At 31 December - 553 827 - 40 100
As a result of pending legal proceedings, the previous decision to dispose the
remainder of Lot H of Borrowdale Estate, owned by the Bank's wholly owned
subsidiary, Carey Farm (Private) Limited, was put in abeyance and the property
was reclassified back to investment property.
18. INVESTMENT PROPERTY
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
At 1 January 552 445 3 618 393 40 000 38 200
Reclassification from non-current assets held-for sale 553 827 - 40 100 -
Disposals - (189 434) - (2 000)
Fair value adjustments 4 119 900 606 309 4 119 900 43 900
Transfer to non-current assets held-for-sale - (553 827) - (40 100)
Monetary adjustment (1 026 172) (2 928 996) - -
At 31 December 4 200 000 552 445 4 200 000 40 000
There was no rental income or operating expenses arising from investment
properties in the current year.
The investment property comprise Stand Number 19207 Harare Township of Stand
19206 measuring 4.4506 hectares in extent. The property was valued for year end
purposes on 5 January 2007 by an independent and professional valuer and the
open market value was Z$1 500 million.
The remainder of Lot H of Borrowdale Estate, owned by Carey Farm (Pvt) Ltd, a
wholly owned subsidiary of the Bank was reclassified from non-current assets
held for sale per Note 17. The property measures 89.2623 hectares (223.16
acres) in extent. The beneficial interest in Carey Farm (Private) Limited arose
from shareholding acquired in settlement of a debt owed to the Bank amounting to
$10 008 million (old currency). The acquisition is in compliance with Section
34 of the Banking Act (Chapter 24.20). The land was valued by an independent
and professional valuer on 11 January 2007 for year end purposes and the open
market value was Z$2 700 million.
19. PROPERTY AND EQUIPMENT
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Cost 24 259 646 24 588 034 175 435 32 957
Accumulated depreciation (15 863 226) (15 737 941) (20 950) (10 048)
Net book value 8 396 420 8 850 090 154 485 22 909
20. CAPITAL COMMITMENTS
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Capital expenditure authorised but not yet contracted for 3 433 139 444 828 3 433 139 32 208
21. CONTINGENT LIABILITIES
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Guarantees 788 517 1 188 293 788 517 86 039
Withholding tax - 92 493 - 6 697
788 517 1 280 786 788 517 92 736
22. EXCHANGE RATES
The following exchange rates have been used to translate the foreign balances to
Zimbabwe dollars at period end:-
31 Dec 2006 31 Dec 2005
Z$ Z$
British Sterling GBP1.00 490.45 146.16
United States Dollar USD1.00 250.00 84.59
DIVIDEND ANNOUNCEMENT
The Board has declared a scrip dividend alternative to the cash dividend of 65
cents per share payable to members registered in the books of the company on 6
April 2007. The transfer books and register of members will be closed from 7
April 2007 to 13 April 2007. Dividend cheques or share certificates to resident
shareholders will be mailed on or about 9 May 2007. The dividends payable to
non-resident shareholders will be paid in accordance with Exchange Control
Regulations. Resident and non-resident shareholders' tax of 15% will be deducted
where applicable.
The share price to be used for the purpose of calculating the number of shares
to be issued for the scrip dividend alternative will be the weighted average
share price on the Zimbabwe Stock Exchange for the last 10 trading days prior to
the record date of 6 April 2007. Fractional entitlements arising from the
computations will be paid in cash.
By Order of the Board
M B Narotam
Company Secretary
21 March 2007
NMB BANK LIMITED
CONSOLIDATED INCOME STATEMENTS
for the year ended 31 December 2006
INFLATION ADJUSTED HISTORICAL
Note 2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Interest income 42 959 005 18 027 772 18 338 478 688 717
Interest expense (26 195 982) (10 723 007) (9 829 242) (402 572)
Net interest income 16 763 023 7 304 765 8 509 236 286 145
Net foreign exchange gain 860 744 5 008 802 163 806 212 056
Non-interest income a 6 551 404 4 708 051 4 651 456 244 665
Net operating income 24 175 171 17 021 618 13 324 498 742 866
Operating expenditure b (9 427 106) (8 516 126) (3 631 140) (219 272)
Impairment losses on loans and advances (125 391) (449 760) (125 391) (32 565)
Loss on net monetary position (12 893 550) (2 287 732) - -
Profit before taxation 1 729 124 5 768 000 9 567 967 491 029
Taxation (762 872) (2 078 617) (2 282 532) (142 763)
Financial institutions levy (345 412) (323 664) (345 412) (23 435)
Profit/(loss) after taxation 620 840 3 365 719 6 940 023 324 831
Earnings/(loss) per share (cents):
- Basic c 38 402 21 575 429 280 2 082
- Headline c (178 460) 19 416 212 328 1 824
NMB BANK LIMITED
CONSOLIDATED BALANCE SHEETS
As at 31 December 2006
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
SHAREHOLDER'S FUNDS Note Z$ '000 Z$ '000 Z$ '000 Z$ '000
Share capital 1 934 997 1 934 995 33 32
Capital reserves 15 598 392 13 556 963 863 803 82 421
Revenue reserves (4 108 471)(4 633 826) 7 153 602 309 064
Total shareholder's funds 13 424 918 10 858 132 8 017 438 391 517
LIABILITIES
Deposits and other accounts 38 674 312 28 586 899 38 674 312 2 069 844
Financial liabilities 12 454 310 7 473 178 12 454 310 541 098
Amount owing to holding company 40 552 40 40
Provision for current taxation 412 949 299 965 412 949 21 719
Acceptances 108 61 390 108 4 445
Deferred taxation 3 547 674 4 046 813 1 129 569 109 048
68 514 311 51 326 929 60 688 726 3 137 711
ASSETS
Cash and cash e 14 297 224 12 897 737 14 297 224 933 865
equivalents
Financial assets at fair
value through profit
and loss 19 966 706 13 930 022 19 966 706 1 008 608
Available-for-sale 1 182 551 481 415 1 182 551 34 857
securities
Financial assets 7 029 450 - 7 029 450 -
held-to-maturity
Advances and other 13 855 948 14 544 314 13 855 948 1 053 086
accounts
Non-current assets f - 553 827 - 40 100
held-for-sale
Customers' indebtedness 108 61 390 108 4 445
for acceptances
Quoted and other 2 422 1 174 2 422 85
investments
Investment properties g 4 200 000 552 445 4 200 000 40 000
Property and equipment h 7 979 902 8 304 605 154 317 22 665
68 514 311 51 326 929 60 688 726 3 137 711
NMB BANK LIMITED
CONSOLIDATED INFLATION ADJUSTED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2006
Capital Reserves
Share Share Statutory Revaluation Retained
Capital Premium Reserve Reserve Other Profit/(loss) Total
Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000
Balances at 1 January 2006 1 934 995 13 032 128 522 296 41 019 (38 480) (4 633 826) 10 858 132
Net profit for the period - - - - - 620 840 620 840
Fair value loss on
available
for-sale-securities - - - - (316 377) - (316 377)
Deferred tax on
available-for-
sale-securities - - - - 97 760 - 97 760
Additional impairment
losses on loans and
advances as per RBZ
grading - - - - - (138 183) (138 183)
Deferred for tax on
impairment losses on loans
and advances - - - - - 42 698 42 698
Shares issued 2 2 260 046 - - - 2 260 048
Dividend paid - - - - - - -
Balances at 31 December
2005 1 934 997 15 292 174 522 296 41 019 (257 097) (4 108 471) 13 424 918
for the year ended 31 December 2005
Capital Reserves
Share Share Statutory Revaluation Retained
Capital Premium Reserve Reserve Other Profit/(loss) Total
Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000
Balances at 1 January
2005 as previously
reported 1 934 981 12 052 078 522 296 41 019 - (7 939 591) 6 610 783
Effect of
implementation of
revised IAS18 - - - - - (59 954) (59 954)
--------------- --------------- ------------ ------------ ---------- --------------- ---------------
1 934 981 12 052 078 522 296 41 019 - (7 999 545) 6 550 829
Net profit for the - - - - - 3 365 719 3 365 719
period
Fair value loss on
available-for-sale
securities - - - - (55 686) - (55 686)
Deferred tax on
available- for-sale
securities - - - - 17 206 - 17 206
Shares issued 14 980 050 - - - - 980 064
Dividend paid - - - - - - -
Balances at 31
December 2005 1 934 995 13 032 128 522 296 41 019 (38 480) (4 633 826) 10 858 132
NMB BANK LIMITED
CONSOLIDATED HISTORICAL STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2006
Capital Reserves
Share Share Statutory Revaluation Retained
Capital Premium Reserve Reserve Other Profit/ Total
(loss)
Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000
Balances at 1 January 2006 32 84 946 23 238 (2 786) 309 064 391 517
Net profit for the period - - - - - 6 940 023 6 940 023
Fair value loss on
available-for-sale
securities - - - (316 377) - (316 377)
Deferred tax on
available-for- sale
securities - - - - 97 760 - 97 760
Additional impairment
losses on loans and
advances as per RBZ grading - - - - - (138 183) (138 183)
Deferred tax on impairment
losses on loans and
advances - - - - - 42 698 42 698
Shares issued 1 999 999 - - - - 1 000 000
Dividends paid - - - - - - -
Balances at 31 December 33 1 084 945 23 238 (221 403) 7 153 602 8 017 438
2005
for the year ended 31 December 2005
Capital Reserves
Share Share Statutory Revaluation Retained
Capital Premium Reserve Reserve Other Profit/(loss) Total
Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000 Z$ '000
Balances at 1 January 2005 as
previously reported 31 24 947 23 238 - (15 134) 10 105
Effect of implementation of
revised IAS18 - - - - - (633) (633)
---------- ---------- ----------- ----------- ---------- ------------- -----------
Balances as at 1 January 2005 31 24 947 23 238 - (15 767) 9 472
Net profit for the period - - - - - 324 831 324 831
Fair value loss on
available-for-sale securities - - - - (4 032) - (4 032)
Deferred tax on
available-for-sale securities - - - - 1 246 - 1 246
Shares issued 1 59 999 - - - - 60 000
Dividend paid - - - - - - -
Balances at 31 December 2005 32 84 946 23 238 (2 786) 309 064 391 517
NMB BANK LIMITED
CONSOLIDATED CASH FLOWS STATEMENTS
for the year ended 31 December 2006
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
CASH FLOWS FROM OPERATING ACTIVITIES Note Z$ '000 Z$ '000 Z$ '000 Z$ '000
Profit before taxation and monetary position 14 622 674 8 055 732 9 567 967 491 029
Non-cash items
(Profit)/loss on disposal of property and equipment (5 831) 258 282 (7 915) (4 338)
Depreciation 628 609 1 776 416 10 883 4 950
Impairment losses on loans and advances 125 391 449 760 125 391 32 565
Impairment on non-financial assets 39 267 70 823 39 267 5 128
Loss on net monetary position (12 893 550) (2 287 732) - -
Operating cash flows before changes in operating
assets and liabilities 2 516 560 8 323 281 9 735 593 529 334
Changes in operating assets and liabilities
Financial liabilities 4 981 132 3 358 440 11 913 212 497 658
Deposits and other accounts 10 087 415 (17 115 713) 36 604 468 1 587 700
Financial assets at fair value through profit and loss (6 036 684) (11 608 384) (18 958 098) (984 098)
Financial assets held-to-maturity (7 029 450) - (7 029 450)
Available-for-sale securities (1 017 511) (537 101) (1 464 069) (38 889)
Advances and other accounts 385 520 16 153 768 (13 105 705) (761 198)
Investment properties (3 093 728) 2 322 688 (4 119 900) (43 900) -
Quoted and other investments (1 248) (884) (2 337) (82)
Amount owing to Holding Company (512) (3 246) - -
791 494 892 849 13 573 714 786 525
Taxation
Corporate tax paid (1 353 981) (842 231) (1 075 735) (38 472)
Net cash (outflow)/inflow from operating activities (562 487) 50 618 12 497 979 748 053
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds on disposal of property and equipment 18 641 370 649 7 932 6 054
Purchase of property and equipment (316 717) (143 442) (142 552) (4 022)
Property and equipment prior year adjustment - (566) - 884
Proceeds on disposal of quoted and other investments - - - 6
--------------- ------------- ------------- -------------
Net cash (outflow)/inflow from investing activities (298 076) 226 641 (134 620) 2 922
--------------- ------------- ------------- -------------
Net cash (outflow)/inflow before financing activities (860 563) 277 259 12 363 359 750 975
--------------- ------------- ------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares 2 260 050 980 066 1 000 000 60 000
Dividends paid - - - -
Net cash inflows from financing activities 2 260 050 980 066 1 000 000 60 000
Net increase in cash and cash equivalents 1 399 487 1 257 325 13 363 359 810 975
Cash and cash equivalents at beginning of the year 12 897 737 11 640 412 933 865 122 890
Cash and cash equivalents at the end of the year (note e) 14 297 224 12 897 737 14 297 224 933 865
NMB BANK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2006
a. NON-INTEREST INCOME
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Net gains from quoted and other investments 2 337 1 146 2 337 83
Investment property fair value adjustment 4 119 900 606 309 4 009 900 43 900
Net commission and fee income 2 219 414 1 558 609 443 371 49 502
Profit/(loss) on disposal of property and equipment 5 831 (258 282) 7 915 4 338
Other net operating income 203 922 2 800 269 77 933 146 842
6 551 404 4 708 051 4 651 456 244 665
b. OPERATING EXPENDITURE
INFLATION ADJUSTED HISTORICAL
The operating profit is after 2006 2005 2006 2005
charging the following: Z$ '000 Z$ '000 Z$ '000 Z$ '000
Administration costs 3 555 144 2 849 003 1 474 239 94 497
Depreciation 628 609 1 776 416 10 883 4 950
Staff costs 5 243 353 3 890 707 2 146 018 119 825
Total 9 427 106 8 516 126 3 631 140 219 272
c. EARNINGS PER SHARE
The calculation of earnings per share is based on the following figures:
c.1 Earnings/(losses)
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Basic 620 840 3 365 719 6 940 023 324 831
Headline earnings (note c.4) (2 885 104) 3 028 824 3 432 639 284 518
c.2 Number of shares (million)
Weighted average shares in issue 16.2 15.6 16.2 15.6
NMB BANK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2006
c.3 Earnings/(loss) per share (cents)
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Basic 38 402 21 575 429 280 2 082
Headline (178 460) 19 416 212 328 1 824
c.4 Headline earnings
INFLATION ADJUSTED HISTORICAL
The adjustments are as follows
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Profit/(loss) attributable to shareholders 620 840 3 365 719 6 940 023 324 831
Add/(deduct) non-recurring items:
- Profit/(loss) on disposal of property and equipment (5 831) 258 282 (7 915) (4 338)
- Fair value adjustment on investment properties (4 119 900) (606 309) (4 119 900) (43 900)
- Tax effect thereon 619 787 11 132 620 431 7 925
(2 885 104) 3 028 834 3 432 639 284 518
d. SHARE CAPITAL
d.1 Authorised
The authorised ordinary share capital at 31 December 2006 is at the historical
cost figure of Z$50 000 (2005 - Z$50 000) comprising 25 million ordinary shares
of Z$2.00 (old currency) each.
d.2 Issued fully paid
The issued share capital at 31 December 2006 is at the historical cost figure of
Z$33 000 (2005 - Z$32 000) comprising 16.5 million (2005 - 16 million) ordinary shares of
Z$2.00 (old currency) each.
e. CASH AND CASH EQUIVALENTS
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Statutory reserve 10 424 301 6 151 852 10 424 301 445 427
Current, Nostro accounts and cash 3 872 923 6 745 885 3 872 923 488 438
Total cash and cash equivalents 14 297 224 12 897 737 14 297 224 933 865
f. NON-CURRENT ASSETS HELD-FOR-SALE
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Borrowdale Estate Property - 553 827 - 40 100
The non-current asset held-for-sale is in the Bank's subsidiary, Carey Farm
(Private) Limited, has been reclassified to investment property. The Bank's
beneficial interest therein is 100%. The subsidiary's only asset is a certain
piece of land situated in the District of Harare, called The Remainder of Lot H
of Borrowdale Estate measuring 89.2623 hectares (223.16 acres) in extent. The
beneficial interest in the subsidiary arose from shareholding acquired in
settlement of a debt owed to the Bank amounting to $10 008 million (old
currency). This acquisition is in compliance with Section 34 of the Banking Act
(Chapter 24:20). The land was valued by an independent and professional valuer
for year end purposes on 11 January 2007. The open market value of the
unencumbered freehold land and buildings was Z$2 700 million.
g. INVESTMENT PROPERTY
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
2
Borrowdale Estate property 2 700 000 - 2 700 000 -
Borrowdale Race Course Property 4 200 000 552 445 4 200 000 40 000
4 200 000 552 445 4 200 000 40 000
The investment property held by the Bank is Stand 19207 Harare Township of Stand
19206 measuring 4.4506 hectares in extent and that held by the Bank's subsidiary
is the Remainder of Lot H of Borrowdale Estate, which was previously reported
under non-current asset held for sale. The land for Stand 19207 was valued by
an independent and professional valuer for year end purposes on 5 January 2007
and the open market value was Z$1 500 million.
h. PROPERTY AND EQUIPMENT
INFLATION ADJUSTED HISTORICAL
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Cost 23 930 722 23 614 015 175 015 32 535
Accumulated depreciation (15 950 820) (15 309 410) (20 698) (9 870)
Net book value 7 979 902 8 304 605 154 317 22 665
i. CAPITAL ADEQUACY
2006 2005 2006 2005
Z$ '000 Z$ '000 Z$ '000 Z$ '000
Share capital 1 934 997 1 934 995 33 32
Share premium 15 292 174 13 032 127 1 084 945 84 946
Retained earnings (4 108 471) (4 633 826) 7 153 602 309 064
Other (257 097) (38 480) (221 403) (2 786)
Statutory reserve 522 296 522 296 23 23
--------------- --------------- -------------- ------------
13 383 899 10 817 113 8 017 200 391 279
Less: capital allocated for market
and operational risk (775 086) - (775 084) -
Credit to insiders (111 330) (98 943) (111 330) (7 164)
Tier 1 capital 12 497 483 10 718 170 7 130 784 384 115
Tier 2 capital 340 649 690 460 299 868 19 089
Revaluation reserves 41 019 41 019 238 238
Subordinated debt 40 552 40 40
General provisions 299 590 648 889 299 590 18 811
Total tier 1 & 2 capital 12 838 132 11 408 630 7 430 652 403 204
Tier 3 capital (sum of market and
operational risk capital) 775 086 - 775 086 -
Total capital base 13 613 218 11 408 630 8 205 738 403 204
Total risk weighted assets 27 331 865 24 732 876 27 331 865 1 790 797
Tier 1 ratio 45.72% 43.34% 26.09% 21. 45%
Tier 2 ratio 1.25% 2.79% 1.10% 1.07%
Tier 3 ratio 2.84% - 2.83% -
Total capital adequacy ratio 49.81% 46.13% 30.02% 22.52%
NMBZ HOLDINGS LIMITED
NOTICE TO MEMBERS
Notice is hereby given that the Annual General Meeting of Members of NMBZ
Holdings Limited will be held at the Registered Office of the Company at 4th
Floor, Unity Court, Cnr 1st Street/Kwame Nkrumah Avenue, Harare on Tuesday 29
May 2007 at 1430 hours for the following purposes:
ORDINARY BUSINESS
1. To receive and adopt the 2006 Financial Statements together with the reports
of the Directors and Auditors thereon.
2. To appoint Directors
In accordance with the Articles of Association, Mr B Ndachena who was
appointed subsequent to the last Annual General meeting will retire at the
forthcoming Annual General Meeting and Messrs G M Mandishona and D T Hatendi
retire by rotation. All the retiring directors offer themselves for
re-election.
3. To appoint Auditors for the current year and to approve KPMG's remuneration
for the previous year.
Note: A member of the company entitled to attend and vote at this meeting is
entitled to appoint a proxy to attend, speak and on a poll, vote in his stead. A
proxy need not be a member of the company. Proxy forms should be forwarded to
reach the office of the transfer secretaries at least 48 hours before the
commencement of the meeting.
By order of the Board
Company Secretary
M B Narotam
21 March 2007
Registered Offices
1st Floor NMB Centre
Unity Court George Silundika Avenue/
Cnr 1st Street/Kwame Nkrumah Avenue Leopold Takawira Street
Harare Bulawayo
Zimbabwe Zimbabwe
Telephone +263 4 759651 +263 9 70169
Facsimile +263 4 759648 +263 9 68535
Website: http://www.nmbz.co.zw
Email: enquiries@nmbz.co.zw
Transfer Secretaries
In Zimbabwe In UK
First Transfer Secretaries Computershare Services PLC
4th Floor, Gold Bridge North 36 St Andrew Square
Eastgate Building Edinburgh
Cnr. Robert Mugabe/Second Street EH2 2YB
P O Box 11 UK
Harare
Zimbabwe
This information is provided by RNS
The company news service from the London Stock Exchange