National Bank of Malawi reports K17.16 billion annual profit

National Bank of Malawi (NBM) plc has reported a profit  after-tax of K17.16 billion in the year ended December 31 2019, representing seven percent increase.

The profit has jumped from K15.97 billion the year before.

Speaking during the Malawi Stock Exchange-listed bank’s 48th Annual General Meeting  (AGM)  held virtually due to the coronavirus (Covid-19) pandemic, its board chairperson George  Partridge said noninterest income grew by 10 percent while net interest and investment income jumped by 12 percent.

He said: “Overall net revenue grew by 11 percent while operating expenses increased by six percent notwithstanding staff rationalisation costs that were incurred during the first-half of the year.

“The loan book grew by 13 percent and customer deposits increased by eight percent year-on-year.”

Among the resolutions, the board declared a final dividend of K4.3 billion  making a  total dividend of K8.3 billion in respect of 2019 profits, representing K17.82 per ordinary share.

The bank already paid a first interim dividend of K2.5 billion on September 20 2019 and a second interim dividend of K1.5 billion on March 30 2020 in respect of the 2019 financial year.

Commenting on the operating environment, Partridge said the country witnessed pre and post-elections political tension which negatively affected the general business environment.

During the AGM, the board bade farewell to Elias Kambalame who retired in May 2019 after many years of service.

The AGM  welcomed and confirmed three new board members, namely Bessie Nyirenda, McLeod Nkhoma and Crispin Mzengereza.

Meanwhile, the AGM  also re-elected board members Raymond Banda, Maureen Kachingwe and Dorothy Ngwira who retired by rotation  but offered themselves for  re-election.