National Bank of Malawi posts K17 billion profit after tax
Listed National Bank of Malawi (NBM) plc has registered a group profit after tax of K17.16 billion from K15.97 billion reported in 2018 representing an increase of 7%.
In a statement announcing the financial results ending 31 December 2019 signed by NBM plc board chairman George Partridge, board director Dorothy Ngwira, NBM plc chief executive officer Macfussy Kawawa and Chief Finance officer Masauko Katsala, NBM plc said Non-interest income grew by 10% while net interest and investment income grew by 12%.
“Overall net revenue grew by 11% while operating expenses increased by 6%, notwithstanding staff rationalisation costs that were incurred during the first half of the year. The loan book grew by 13% and customer deposits increased by 8% year on year,” reads the statement dated March 31, 2020.
However, the bank noted that the economy experienced some negative shocks as a result of Cyclone Idai which ravaged parts of the southern region coupled with poor tobacco export receipts compared to the previous year.
“Inflation averaged 9.4% in 2019 (2018: 9.2%) but closed the year 2019 at11.5% (2018: 9.9%) as a result of increases in food inflation attributed to seasonal factors,” reads part of the statement.
NBM plc also said the second half of the year, the banking industry adopted the use of a reference rate which has ranged from 12 % to 13.4%. The Reserve Bank of Malawi (RBM) has been gradually dropping the Policy Rate from 16% in January 2019 to the current 13.5%. Correspondingly commercial Banks have gradually reduced their lending rates.
“The Malawi Kwacha appreciated in the last quarter of 2019 from about K761/1USD at the beginning of July 2019 to K732/1USD at the end of 2019,” reads the statement.
The Bank paid an interim dividend of K2.5 billion in September 2019, the same figure it paid in 2018 and a second interim dividend amounting to K1.5billion on 30 March 2020 also the same figure that it paid in 2018.
The directors of NBM plc have recommend a final dividend of K4.3billion compared to K3.5 billion in 2018, making a total dividend of K8.3b in respect of 2019 profits representing K17.78 per ordinary share compared to K16.06 per share as regards the profits of 2018. The final dividend will be payable after approval by the Annual General Meeting (AGM) scheduled for June 2020.
The bank projected that the economy was expected to grow by 5.2 % in 2020 on account of the agriculture sector due to favourable weather conditions. Inflation was also expected to start declining towards the medium-term target of 5% by end of 2021, according to NBM plc.
“The likelihood of achieving the above targets has now been undermined by an unstable operating environment arising from political uncertainty following the nullification of the Presidential election results as this could affect effective policy making and implementation. Climate shocks and the impact of the COVID-19 on the country and its trading partners will also affect the growth prospects,” reads the statement in part.
However, the Bank said it is implementing a strategy that seeks to embed customer centricity deeply into its culture with digitalization being one of the key pillars in the quest for delighting its customers.
“The year 2020 will therefore be characterized by the launch of various value adding digital initiatives,” reads part of the statement.
NBM plc also announced that in its efforts to expand its operations beyond the borders of the country, it is in the process of acquiring a controlling stake of a bank in Tanzania adding that the process of securing regulatory approvals both locally and internationally is underway.
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Profits from excessive banks charges…..am planning to close my account!
IF A perosn or A company in a society is getting richier or reporting huge profits just know that someone is getting poor and poor or thiner becouse the richier is getting advantage of the society, we can go anyway with that.
National Bank 2 Much of Bank charges these days SHAME ON YOU
Iwe mcfussy kawawa, look at the hungry street kid begging from us a few metres from your service centre, do you see anything to smile about? Look at the status of the Malawi economy eeeeeh Its pathetic. But you and your friends make roughly k1billion kwacha per service centre that’s bad. President mutharika akamanva izi he is sure to think economy yathu wayima nga pa mwala
We really need that kusamba dzonzi chap (dowa MP) who initiated loan interest cap bill. We need such kind of MPs osati mbuzi gotani ndi zinzake zomangoganiza kukagwada kubwalo. They don’t know what powers parliament holds.
Those are not profits!!! Those are illicit inflows. A bank full of sons and daughters of adulterers and fornicators!!! Thieves!!
This bank is the worst in Malawi. The charges are way too high I had to close my account with them.
Day light robbery stealing from people. They are introducing wide variety of fees for no apparent reasons and one of it is cash withdrawal fee. With the current economic situation, which entity can be making such mouth watering profits? Something somewhere is seriously wrong here. And yet we have a well established regulatory body in the banking sector and it calls itself The Reserve Bank of Malawi. Then what are you regulating? This abnormal profits calls for a seriously investigation and warning to all banks this is the beginning
That’s what our banks are good at; fleecing it’s customers and staff so that the to make obscene profits.
Not surprising. All those hefty charges on customers should make you huge profits!
MK17 billion profit in a poorest country like Malawi and Government is all smiling. This tells a lot . National Bank, National Bank, How much are you paying your tellers per month with all these profit.. shame to top Management.
Ndi manyazi omwe alibe a NBM.
Nothing to be proud of when small businesses and individuals are getting ripped off by humongous charges by the banks like NBM.
Ndalama zobera ma customers. Shame on National Bank.
Good news Mr Kawawa.
I hope that PCL greedy executives will not demand hefty bonuses based on NBM results while the group is shrinking.
PCL executives are not serious to the point of reporting in the local press trivial issues like birthday celebrations for employees. We need them to report on serious investment undertaken if any. By the way why buy birthday cakes at MK50,000 each? Mr George Partridge please respect shareholders!!!!!
Most subsidiaries are underperforming but PCL is just smiling at such management. Where are the hard working and experienced managers?
Waiting for PCL Group results and one thing I can assure Malawians is that without NBM, its disaster.
All banks in Malawi should make profits as they have always done. The question would which one has registered more than the other. Banks have this scenario in Malawi not because they are good at risk management or they have good strategies in their maximisation of contribution but it is because of Interest gap which Reserve Bank of Malawi has simply turned a blind eye on. So in simple terms banks in Malawi make profits because of the diference between interest on borrowings and interest on deposits. That is why on legistlator was trying to bring in intetest caps etc
So despite chakwera demos banks still increasing their profits while SME’s have stocks rotten. Shame on you money changers for you overprice your services. You charge to keep our money and when you lend us you also charge. In a nation where banking services penetration is less than 10% of the population, such kind of profits can only be described as very unethical. Lower your rates
Point of correction: They are not Chakwera demos but, rather, HRDC’s. Chakwera, Chilima and several agrieved Malawians just joined the demonstrations.
zoona, they are happy and obsessed with declaring obscene profits from robbing the poor souls…very sad
and many of them under treatment,as extra money is no problem to rule under priviledged ,robbed poor souls.