National Bank of Malawi posts K14.bn profit

One of the commercial banks in the country, National Bank of Malawi (NBM) has announced it has raked in K 14.5 billion profit after tax in 2014 up from K12.7 billion earned in 2013, representing a  14.3 percent.

NBM board chairperson Prof Matthews Chikaonda said the bank’s  loan book registered a growth of 26 percent while deposits grew by 16.6 percent by end of the year.

The bank also registered a 39 percent growth in its personal and business banking lending portfolio which comprises of leasing, personal and SME banking.

Following the performance National Bank, which is listed at the Malawi Stock Exchange, has declared a total dividend of K7.1 billion to its shareholders broken down to K15.35 per share.

The bank had already paid an interim dividend of K2.5 billion in September last year.

Chikaonda told shareholders at the bank’s 43rd annual general meeting last Friday in Blantyre that although the business environment in the first half of the year was challenging, things improved in the later months of the year.

He said the negative economic developments at the beginning of the year considerably slowed down economic activity and had a direct effect on NBM’s business.

“Tight monitory policy pursued by the Reserve Bank of Malawi kept interest rates high throughout the period,” said Chikaonda.

The bank is poised to continue with the good performance.

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