National Bank of Malawi posts K22.4 billion profit after tax

Listed National Bank of Malawi (NBM) plc has registered a group profit after tax of K22.45billion from K17.16 billion in 2019 representing an increase of 31% for the period ending 31 December 2020.

NBM CEO Macfussy Kawawa
Partridge: Overall net revenue grew by 12%.

In a statement signed by the Bank’s Board Chairman Dr George Partridge, Board member Dorothy Ngwira, Chief Executive Officer Macfussy Kawawa and Chief Finance Officer Masauko Katsala, NBM plc says there was a significant growth in non-interest income of 17% while net interest and investment income grew by 9%.

“Overall net revenue grew by 12%. The Bank continued to control expenses within inflation. Operating expenses increased by 7% while impairment losses reduced by 45%.Customer deposits increased by 27% year on year while the Bank’s loan book grew by 6% largely on account of the COVID-19 pandemic.  Excess funds were invested in Treasury Bills and Treasury Notes which grew by 35%,” reads the statement in part.

The Bank said the expected economic growth for year 2020 was revised downwards to 0.9% from an earlier estimate of 5.0% and that economic activity for the year remained subdued largely on account of both the political uncertainty in the run up to the Fresh Presidential Election and the impact of the Covid-19 pandemic.

“The Reserve Bank of Malawi (RBM) and the Bankers Association of Malawi implemented some measures to help businesses mitigate the impact of the COVID-19 pandemic. These included the reduction of the domestic Liquidity Reserve Requirement from 5% to 3.75% by RBM with a view to releasing some liquidity into the economy, 40% reduction of service fees for digital banking products, and restructuring of loans which included the granting of at least 3 months loan repayment moratoria to businesses that would be affected by the pandemic,” reads part of the statement.

The Bank said Inflation averaged 8.6% in the year down from 9.6% recorded the previous year, anchored by non-food inflation which averaged about 3.8% in the year.

“During the year, the Malawi Kwacha gradually depreciated against all major trading currencies.   The weakening of the Kwacha reflected the scarcity of foreign exchange supply amidst the Covid-19 pandemic and a weak exports performance,” reads the statement.

NBM plc also announced that it has entered into negotiations to further acquire 24% stake in Akiba Commercial Bank (ACB) in Tanzania after completing the acquisition of a 51% controlling stake in the foreign bank towards the end of the year 2020.

NBM plc said the directors of the bank have recommended to pay a final dividend of K8 billion, up from K4.3 billion paid last year, making a total dividend of K13 billion in respect of 2020 profits representing K27.84 per ordinary share, up from K17.78 per share in 2019.

“The Bank paid an interim dividend of K2.5b in September 2020 (2019: K2.5b) and a second interim dividend amounting to K2.5b on 31 March 2021 (2019: K1.5b). The final dividend will be payable after approval by the Annual General Meeting scheduled for June 2021,” reads the statement in part.

Commenting on the economic outlook, NBM plc says the economy is expected to grow by 3.5% in 2021 driven by an improved macro-economic environment following availability of Covid-19 vaccines.

“Looking ahead the Board envisages a continuing stable macroeconomic environment. This, however, is dependent on how quickly the Covid- 19 situation is brought under control and economic activity return to normality.  In addition, the acquisition of controlling stake in ACB has opened the door for the Group to realize its regional diversification strategy,” reads the statement in part.

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Shadreck
Shadreck
16 days ago

Malawi is poorer and poorer, industries are declining, and all the population is going below the poverty line. Meanwhile, banks are making a lot of money. This situation is not sustainable.

Mulopwana
17 days ago

Akutibela a pumbwa awa a Natbank. UnImagined profit. What % is this profit.i have a suggeation tho, on wednesday lets all wwirhdraw our money tikamwele mowa. Tiwone kuti ma profit achokela kuti. Oho paja they dont mind about individuals and they mind corporate mhxie. Ana a njoka

Opportunist
Opportunist
17 days ago

Useless celebration in expense of milking poor Malawians

Medsonchimudima3@gmail.com
18 days ago

Ma kampani akuba awa
And mwawadura dura pano mkusimba lo Koma.

Steve Phiri
Steve Phiri
18 days ago

Making huge profits at the expense of poor Malawians, shame on you!!! Exorbitant service charges, you thieves

Dont lose Focus
Dont lose Focus
18 days ago

National Bank is always boasting about making big profits each year koma hw do we as ts customers enjoy that?? Standardbank on the other hand is giving out unsecured loans to ts customers js by monitoring the customer,s track record. This initiative will give most malawians the chance to develop themselves and in turn their country..pamene Nationalbank all we hear is we r making profits profits!!

Luzard wamba
Luzard wamba
18 days ago

Reserve bank tell us why bank business is most profitable in malawi. Can you not regulate the charges to serve low income customers. Ma bank akutibela anthufe..

Wanjerwa za Bwino
Wanjerwa za Bwino
18 days ago
Reply to  Luzard wamba

You make a very good point. I just discovered that One Commercial Bank next to Reserve Bank in Capital City charges me over K19,000 every month as management fees on my current account.

Our Reserve Bank 🏦 is so sleepy 😴

Nkhwiko
Nkhwiko
17 days ago

Zimakhala zogwirizanatu. These are partners in crime

Luzard wamba
Luzard wamba
18 days ago

Yes

Bİgman
Bİgman
18 days ago

The main cause of poverty is the banking system and our modern monetary system.
However would one who spent 12 years of general education without studying money would under that statement?

Suso
Suso
18 days ago

How much do you pay as interest to your saving account customers as interest per year? You are shamelessly posting these astronomical profits after tax for thieving from poor Malawians. You are giving as little as 1 kwacha as annual interest to people that ave savings account with you but charging them K1,200 per month as service fee. Malawi, a country that have no protection for its citizen from thieving banks and mobile telecommunications companies.

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