NMBZ sets eyes on regional, international markets

Financial services group, NMBZ Holdings Limited, is targeting to penetrate regional markets with its newly set up technology company – XPlug Solutions Limited.

Group chief executive officer, Gerald Gore, said the company was launched in July this year on the backdrop of the successful in-house development of technology solutions for the banking subsidiary.

The business unit, which is now servicing other businesses outside the group, is now looking at spreading to regional markets with negotiations already underway with firms in Mozambique, Tanzania and Zambia.

“The capacity within the group is immense and in line with the group expansion drive, we are now offering technology solutions to organisations outside the group, both in the financial and non-financial space,” said Gore in a performance update for the half year to June 30, 2023.

“The subsidiary will also serve customers in the region and we have current engagements with financial institutions in Tanzania, Zambia and Mozambique who have signed up for our digital transformation solutions.

“With the success registered to date, Xplug Solutions is targeting to provide technology solutions to all the 54 African countries and beyond, hence our mantra – ‘54 and more,’” he said.

According to the group, these solutions range from mobile apps, USSD, Internet banking solutions, digital customer on-boarding, agency banking, workflow, Robotics Processes Automation (RPA) solutions and cybersecurity management tools.

The launch of XPlug Solutions was part of the group’s diversification strategy which was realised during the six-month period. This also saw the launch of another standalone unit – NMB Properties Limited, which was set up in May.

“This subsidiary was a spin-off from our property division under the Bank and by the time we launched, we had established critical mass.

“The property company already has a number of development projects and properties on the market with a pipeline that should keep them busy for the next two years,” said Gore.

The group is set to contribute significantly to the housing market covering all the spectrums including affordable low income, medium density and luxurious residential properties as well as commercial real estate.

Meanwhile, during the half year period, the group achieved operating income of $283 billion, up from $51 billion recorded in the comparative period driven by a significant increase in interest income and continued growth in fees and commission income.

Total assets jumped 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, which was up 151 percent from December 2022 levels.

The group continues to take a measured approach to risk, as evidenced by the strong asset quality with an NPL ratio of 0,57 percent ratio compared to 1,09 percent as at 31 December 2022.

According to the group, 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 largely reflecting the impact of the exchange rate depreciation on US dollar deposits.

The group’s main subsidiary, NMB Bank Limited remains well capitalised 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.-businssweekly