National Bank of Malawi (NBM) has claimed the top position as Malawi’s biggest bank by both profits and assets if half year financial statements from NBM and its closes rival Standard bank are anything to go by.
NBM were the first to announce their 2015 half year results recording a profit before tax of K11.7 billion against Standard Bank’s K9.8 billion representing almost a 25 % difference.
On assets, NBM announced that its total assets at the first half of the year stood at a K22 billion while Standard bank recorded total assets were at K18 billion.
The NBM pre-tax profit of K11.8 billion is higher by 16% compared to K10.1 billion earned during the same period last year.
“The results have shown that NBM is the biggest bank in Malawi by both profits and assets because of its strong financial management and this shows that most Malawians have confidence in the local bank,” said one financial analyst.
According to financial statements published in the local press, Standard Bank said in the first half of the year, the macroeconomic environment continued to be characterized by high lending rates which constrained credit expansion.
“Treasury bill yields generally abated, partly due to the high market liquidity that characterized the most part of the period,” reads part of Standard Bank statement signed by its Board Chairman Rex Harawa, Board Director Andrew Chioko, Chief Executive Officer Andrew Mashanda and Chief Financial Officer Temwaka Simwaka.
On the other hand, NBM said the bank’s own capacity to lend was effectively reduced by Reserve Bank of Malawi (RBM)’s change in Liquidity Reserve Requirement rules by introducing additional Malawi Kwacha liquidity reserves against foreign currency balances and other administrative measures to complement tight monetary policy stance.
“The forecast for the second half of the year points to an environment of high inflation, high interest rates and a depreciating kwacha. Lagged pass through effects of the depreciating Kwacha and food prices are expected to dominate and influence the rate of inflation. Thus, the results for the second half of the year are expected not to be significantly different from those of the first half,” reads party of the NBM statement signed by its Board Chairman Matthews Chikaonda, Board Director Don Kambalametore, Chief Executive Officer George Partridge and Chief Financial Officer Mac Fussy Kawawa.