Listed National Bank of Malawi (NBM)plc held its 47th Annual General meeting (AGM) in Blantyre on Thursday where it declared a final dividend of K3.5 billion to its shareholders.
Addressing the AGM, NBM Board Chairman Dr George Partridge said the K3.5 billion makes a total of K7.5 billion dividend in respect of 2018 profits representing K16.06 per ordinary share.
NBM already paid the first interim dividend of K2.5 billion on 21st September 2018 and a second interim dividend of K1.5 billion on 1st April 2019.
“The Bank registered a group profit after tax of K15.97 billion from K19.15 billion the preceding year representing a decrease of 16.6% largely due to a subdued loan book in the first half of the year. Non-interest income increased by 11.2%,” said Partridge.
He, however, said the Bank’s loan book grew by 21% mostly in the second half of the year mainly from the Small and Medium Enterprises (SMEs) and personal sectors.
“Customer deposits increased by 5.8% and the Bank achieved a total asset growth of 6.4% in the Statement of Financial Position,” said Partridge who is also the Group Chief Executive Officer of conglomerate Press Corporation plc, a major shareholder of NBM plc.
NBM expects the Gross Domestic Product (GDP) to grow by 5.3% in 2019 with the Agriculture sector being the mainstay of this growth, according to Partridge.
“Looking ahead, the Board envisages a continuing stable operating environment characterized by low interest rates, a stable currency and some increased commercial activity and therefore an improvement in the Bank’s performance through its ability to leverage on its core strengths to address challenges and exploit opportunities in the market,” said Partridge.
Partridge also said the Bank is implementing a strategy that seeks to embed customer centricity deeply into the culture of the business with digitalization being one of the key pillars in quest for delighting its customers.
It was announced at the AGM that a new director, Dorothy Ngwira joined the board in October 2018 to replace Maria Msiska who retired in July 2018.
The AGM also amended the Bank’s Articles of Association, Clause 52.1, by increasing the maximum number of directors from 11 to 13 which Partridge said has been necessitated by new provisions from the regulator, the Reserve Bank of Malawi (RBM).
The meeting also noted the retirement of director Elias Kambalame who served the board for almost 18 years and was not available for re-election.
Maureen Kachingwe who retired by rotation but being eligible, offered herself for re-election and the shareholders re-elected her as director.Follow and Subscribe Nyasa TV :