Sunday, July 14, 2024

NDB net loss swells

The National Development Bank (NDB) has once again recorded a net loss this time around rising from P21.2 million to P168 million for the period ended 31 March 2017. The statutory bank’s Interest Income has also decreased by 16 percent from P222.1 million to P186 million in March 2017.

The bank’s latest financial statement shows a 5.9 percent upward movement in its total assets reaching P1.44 billion from P1.36 billion whilst Gross Loans and advances are down by 8.17 percent P1.48 billion from P1.62 billion.

Chief Executive Officer Lorato Morapedi said Friday that throughout 2016, NDB slowed down on disbursements while focusing on the turnaround plan which included reduction of non-performing loans.

The bank’s financials shows that for the year 2016/17 its disbursements stood at P122 million against a target of P210 million. Morapedi said that the negative variance affected loans and advances growth and expected interest income which declined by 16 percent.

Collections continue to be a challenge for the government owned bank which as exposure to the highly risky agriculture sector. Its financials shows that its actual collections for the year under review reached P115.8 million against a target of P210 million.

Given the persistent challenges that were imminent even during this year, NDB is said to have prudently provided for a higher impairment charge for the year-ended March 2017. Morapedi said Friday that the effect of this intervention was an increase in impairments to P184 million from P60 million which led to total loss of P168 million.

Meanwhile on transformation journey, Morapedi stated that the bank focused on a three pronged approach which included technology, people and processes. She added that following the structure realignment in 2012, the NDB implemented an integrated banking system in 2014.

The government owned bank has in the past acquired an Integrated Banking System in a bid to improve customer service, as well as mobilisation of the commercialisation exercise expected to be completed by 2019.


Read this week's paper