NMBZ shareholder backbone strengthened

Published: 28 August 2017

Arise, an investment company formed by a partnership between Norfund, a Norwegian investment fund, FMO, a Dutch development fund and Rabobank, a Dutch commercial bank, is now NMBZ's second largest shareholder with 17,98 percent shareholding.

This follows the purchase of 69,14 million shares by Arise from Norfund and FMO in NMBZ.

African Century Financial Investments incorporated in Mauritius, is the largest shareholder in NMBZ with a 18,52 percent stake.

Commenting on the deal, Arise CEO Deepak Malik said: "In taking and managing strategic minority equity stakes in sub-saharan African financial service providers, we aim to build strong and stable institutions that will support the mass market, Small to Medium Enterprises (SMEs) and rural communities."

Arise supports the growth and development of African financial service providers, not only through its investments in them, but through providing them with technical and management services in the fields of governance, management, marketing, innovation, compliance and risk management.

This fits in well with NMB Bank's thrust to promote financial inclusion and help SMEs develop into formidable businesses.

NMBZ chief executive officer Benefit Washaya said the development will enable the financial institution to benefit from being part of a wide network of African banks in which Arise has interests.

"NMBZ is excited and welcomes Arise as an important shareholder for our company and as an important contributor to building a stronger financial sector in sub-Saharan Africa. NMBZ will benefit from the wide network of other African banks that are part of this group," he said.

In May, NMBZ announced that it has secured a $5 million line of credit from a regional finance house for on lending to the productive sector, including SMEs.

Last year, the bank secured $15 million line of credit from two European financial institutions for its exporting customers.

NMB Bank's loans and advances for the four months to April 30, 2017 marginally dropped by one percent to $202,3 million compared to December last year.

Total deposits rose by two percent to $262,4 million on the prior comparable period, with cheap demand deposits contributing 58 percent.

Operating income dropped eight percent to $12,6 million due to tighter lending.

However; on month on month performance, April 2017 operating income was five percent higher than April 2016.

Operating expenses for the four months increased by two percent while cost to income ratio narrowed to 73 percent compared to 75 percent.
- newsday

Tags: NMB,