National Bank of Malawi posts K19 billion profit

National Bank of Malawi (NBM), the Malawi Stock Exchange (MSE) listed financial institution,  has posted a 2017 profit of K19.15 billion, up from K16.6billion from the previous year, registering an after tax profit growth of 15%.

Partridge: Financial results have once agains demonstrated NBM’S remarkable resilience in performance in an adverse environment 

A statement of financial results for the year ending 31st December 2017 indicated that the bank has achieved an overall growth of 19% in the statements of financial position.

The statement signed by NBM Board Chairman George Partridge, Chief Executive Officer Macfussy Kawawa, Chief Financial Officer Masauko Katsala and Board Director Maria Msiska said the financial results have once again, demonstrated the bank’s remarkable resilience in performance in an adverse environment.

The bank paid an interim dividend of K3.3 billion in September 2017 (2016; K3billion) and a second interim dividend amounting to K1.5 billion on 23rd March 2018 (2017: K1.5 billion).

“The directors recommend a final dividend of K4.2 billion (2017:K3.8 billion) making a total of K9.015 billion in respect of 2017 profits representing K19.30 (2016: K17.88) per ordinary share. The final dividend will be paid after the Annual General meeting (AGM) scheduled for June 2018,” reads the statement in part.

“The year started on a positive note with inflation continuing to trend downwards from 20% in December 2016 to 7.1% in December 2017. Consistent with the inflation trend, the policy rate was reduced three times during the year and commercial banks responded by reducing their base lending rates,” said the bank.

The bank also said agricultural production improved due to good weather and there was optimism for a rebound of the economy.

“Notwithstanding the positive trends, economic activity was generally subdued mainly due to low productivity levels on account of the challenges with power supply. Demand for goods and services was negatively affected, attributed to low buying power especially among rural farmers as prices of maize and other agricultural commodities crashed,” reads the statement in part.

The bank made a significant provision of K5.9 billion for non-performing loans (NPL) following the maize export ban which accelerated the crash in maize prices, adversely affecting the ability of commodity traders to service debts with the Bank.

Looking forward to the future, the bank said it has developed a 5 year strategic plan for the period 2018 to 2022 with the objective of consolidating its leadership position in the market.

“Going into the future, the focus will be to delight our customers through acceleration of digitization of products and processes, driving greater efficiencies and entrenching astute governance and risk management practices,” reads the statement in part.

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Ndatopa Ine
Guest
Ndatopa Ine

With all these massive profits we will soon hear of a rise in bank charges to “defray an increase in operational costs” and by the way, they don’t even care to inform their clients in advance. High time Financial regulators in the country intervened on this rip-off industry. Don’t be surprised when a K100.million is reported next financial year.

Orama
Guest
Orama

What are the benefits of ordinary customers who bank with the National Bank from this huge profit? Will the bank reward ordinary customers with huge interests in their bank accounts? It would be very unfair to pay dividends to shareholders without sharing the profits with ordinary customers who deposited money into the bank and kept positive bank credits during the reporting period. We need fairness in the sharing of these benefits by ensuring that ordinary customers are also rewarded for investing their hard-earned money in the National Bank, the pride of the nation as it is known. Otherwise, it will… Read more »

Panganani
Guest

National Bank needs to go global. There is a huge market in Mocambique and some neighbouring countries. It could benefit by straying out of its comfort zone. The Board and its management should seriously consider doing this sooner than later.

Central
Guest
Central

The prince of thieve is stealing from the poor! It is indeed a miracle to steal billions from the already marginalized people!! I like the way you have put it and it is indeed a demonstration of remarkable resilience in stealing in an adverse environment!! Its an adverse environment because over 80% live on less than a dollar a day, and to accumulate that much ndi lusoooooooooooo and you deserve 2 points and very soon timva kuti you are called to receive a gold medal from satan!!! Anthu oyipa inuuuuuuuuuuuuuuuuuuuuuuuuu, mutanganidwilanji kudziunjikira chuma chonchi kumalanda anthu ovutika? Where on earth… Read more »

Mlendo
Guest
Mlendo

Thieves preying on poor Malawians. Unfortunately the Central Bank is just watching with no action

QueenB
Guest
QueenB

Profits due to high interest rates on loans imposed on poor Malawians. It’s much better to take a loan from an outside bank only that not everyone has access to that. Malawi banks are the worst when it comes to stealing from poor people.

Listen and Love
Guest

These astronomical profits are made up by too numerous hidden costs, abnormal bank charges and penalties suffered by millions of unsuspecting low incomed customers too blind to realize how much money they are being ripped off. RBM is too powerless to regulate the banking industry as customers of Malawi banks get poorer

National Front for Protection of the Poor
Guest
National Front for Protection of the Poor

It saddens us when a local bank such as NB milks the poor with very high interest rate and boasts of high profit. Their rates are equal to the interest rate of loan sharks “mwala ku mwala”. Wealth can be distributed if interest rates were low and the poor had access to soft loans. This will push the poor to Islamic Bank which charges no interest because high interest is morally wrong.

Former Banker
Guest
Former Banker

Its high time you start investing those supernormal profits in other investments or rather transform yourselves into a multi-national financial institution.

When shall we have a malawian based bank operating in south africa, botswana or kenya?

Think Global guys and face the real competition rather than milking too docile malawians

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