NDB Expects To Cut Loses By 50%

Correspondent | Monday October 5, 2015 10:30

Despite tight liquidity,  NDB remains self-sustainable and continues borrowing from the capital market which is still under a constrained interest rates environment.

Updating the media on their current business environment recently   the CEO of NDB Lorato Morapedi said  that an interest constrained environment and high cost of funding immensely affects the Bank’s profitability. The CEO further reflected that despite all these challenges, the Bank intends to break through the ceiling and shrink the Bank’s 2013/14 comprehensive loss by at least 50 percent during the year 2014/15 to ensure that the NDB tracks back to profitability.

Morapedi stated that the Bank is lined up for the privatisation exercise under the Government Privatisation Master Plan and has already appointed a commercialisation consultant who is in the processes of developing a new business model and will assist in the application of a banking licence.

“We expect that when the new business model has been completed and approved at relevant governance structures this will deal with most of the Bank’s woes,”  said the NDB CEO. Having experienced a significantly high level of Non-performing loans(NPL) the Bank embarked on a vigorous collections campaign at the beginning of this financial year  to reduce its NPL by 80 percent in order to drive the Bank back to profitability.