The board of directors for National Bank of Malawi (NBM) says the bank has raked in an 85 percent net profit increase for the half year period ended June 30, 2013, representing K6.3 billion up from last year’s K3.4 billion.
This is contained in National Bank’s summary of unaudited interim results authorised by chairman Mathews Chikaonda, chief executive officer George Partridge and chief financial officer McFussy Kawawa who are also directors of the bank.
The bank notes that the operating environment in the first half of 2013 was fairly positive as it signalled some modest economic recovery evidenced by increased capacity utilisation in most sectors.
“This is in spite of liquidity challenges experienced in the banking industry as a direct result of the Reserve Bank’s continued tight monetary policy stance through mopping-up operations and the maintenance of a high interest rate regime. This is consistent with demand management policies aimed at containing money supply, credit and inflation growth and exchange rate stabilization,” NBM said.
The bank said in line with the improved capacity utilization of its clientele, it registered satisfactory growth in almost all its business lines, notwithstanding liquidity challenges on the market.
Following the performance National Bank, which is listed at the Malawi Stock Exchange, has resolved to pay an interim dividend amounting to K2 billion (2012 first interim: K1.1b) representing K4.28 per share (2012 first interim: K2.43 per share).
The bank said the dividend will be paid on 13th September 2013 to members whose names appear on the register as at the close of business on 30th August, 2013.
In its outlook for the next half of 2013, NBM said it is confident and well positioned to sustain its profitability record and increase its market share through customer service improvements, product innovation and efficiencies through cost containment in the context recovering market demand.
“The trend in the reported results is therefore expected to continue into the second half of the year. The bank is poised to continue with the good performance in the second half due to the envisaged sustained improvements in capacity utilization of clients’ businesses, leading to increased demand for lending and related products especially in the strategic growth areas of corporate and SME products,” NBM said.