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.
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Profiting from excessive bank charges!
These profits are made out of poor service delivery. I would rate 2/10 on the bank’s customer service due to inadequate ATMs, too much paperwork banking, less of electronic banking ( people have to carry loads of bank notes to the bank), too much congestion in their small banking buildings, no adequate tellers and lack of branch autonomy as they have to refer to their head offices all the time. If you make a profit, let it come from a happy customer.
Uku ndiye timati kulibela dziko and our leaders are clapping hands to this?
Theft.
This are our banks, profits like this in times of economic recession? High interests, high fees for everything and poor service! This cartel of banks are not at all conclusive to our business environment! Unfortunately the Reserve Bank is the worst! They announcing 50 billion after tax and building Club Houses for their staff with it?!
Please new government bring this nonsense to an end! We the customers and business community need the necessary boost from the money sector not vias versa! This banks do not even employ more people to serve us better…!
High time banks should stop celebrating interests yielded from poor Malawians, there are a lot of charges, if it was SACCO it could be better because shares are disbursed among SACCO members, koma awa they are busy milking a thin cow kenako busy celebrating God should see u.
Apart from Interest there are other hidden costs that as a customer you just find that deductions have taken place, cost like Insurance to a loan which is not refundable even if you pay back the loan honestly. Its like crooks are the ones who are rewarded. It is better for the insurance to be refundable if you have paid without difaulting.
Eish! MK17 billion profits. High time they revise interests that are given to their clients.
Can the new reserve bank see to it that banks are not exploiting their customers. I think its abnormal these profits are just huge in a small economy like ours where banking is not a luxury but a necessity. Most of these profits are on interest. Could the central bank control to help the poor Malawians.