NICO Group posts K18.6bln profit after tax; K2.399bln to be shared as dividends
As Malawi’s leading financial service providers, NICO Group is celebrating its 50th Anniversary, it has posted K18.596 billion after tax from K14.73 billion profit in 2019 — representing 26% growth for the year.
The company has set aside K2.399 billion as dividends to be shared on its shareholders — from K1.982 billion in 2019 and representing 21% increase.
Its gross revenue is up by 18% from K158.158 billion in 2019 to K185.845 billion in 2020.
The company started off 50 years ago as The National Insurance Company Limited and incorporated as a composite insurance company in 1970 before commencing trading in January 1971.
It became first to list on the Malawi Stock exchange on November 11, 1996 and at a press briefing to announce the financial position of the company, NICO Group Managing Director Vizenge Kumwenda said they “are proud to have been contributing to the national development of the country for 50 years”.
“Being the first to list on the Malawi Stock Exchange, NICO has played a pivotal role in the development of the capital market,” Kumwenda said. “We have been offering comprehensive financial solutions for a range of challenges for the public and private sectors as well as individuals from all walks of life.
“With 50 years experience, we look forward to giving our clients all stakeholders, exceptional services, packaged to deliver value and convenience.”
In 2002, NICO established a holding company in the name of NICO Holdings which changed to NICO Holdings Plc in 2017 in compliance with the new Companies Act 2013.
“NICO Group reaches a milestone of 50 years of operations; 50 years of contributing to national and economic development in Malawi; 50 years of honouring our commitment s to clients; 50 years of pioneering various watershed projects in the country.
“It’s been 50 years of pioneering the development of capital market in Malawi; stepping beyond borders as Malawi’s first multinational company in Tanzania, Uganda, Zambia and Mozambique.”
The company has also invested in infrastructure to create more business and employment opportunities through building Chichiri Shopping Mall in Blantyre; driving innovation and inclusion in banking by establishing NBS Bank with NICO acquiring major shares.
It also leveraged on strong partnership by partnering with Pan-African company Sanlam at 34.3% shareholding.
“We are a dependable one-stop financial services provider in general insurance, asset management, life insurance, pensions administration, banking, ICT services and infrastructure development.
“Other investments include ICON Properties at 67% shareholding; Protea Hotels at 34.3%, Mwaiwathu Private Hospital at 18.8%, Chibuku Products at 21.6% and Standard Bank at 20%.”
NICO also made a record for breaking a 10-year drought on the Malawi Stock Exchange by listing ICON Properties Plc in January 2019, a subsidiary which aims at transforming the real estate landscape to the next level so that they continue to being the market leader.
The previous major listings were through NICO listing in 1996; Blantyre Hotels listing 1997 and NBS Bank listing 2007.
NICO’s strategic alliances are Sanlam Pan African, Botswana Insurance Holdings Limited, Eris Property Group and Rabo Bank.
“Other reasons why shareholders should maintain investing in NICO as well as attract potential stakeholders is that our subsidiaries have significant market share in their respective industries,” Kumwenda said.
“NICO has diversified portfolio of investments in the financial services sector and our subsidiaries leverage on synergies available in the group.
“NICO consistently pays dividends, which does not attract tax deduction because it is calculated from profit after tax.”
Kumwenda also took cognizance that this financial growth has come despite challenges faced due to CoVID-19 which affected some business growth; it impacted negatively on loan book growth, transaction volumes, credit risk, acquisition of new business, collection of premium income, rentals and pension contributions.
“But the diversified group structure was resilient and the satisfactory results were achieved despite the effects of the pandemic, to which we also contributed in its fight by joining the private sector in assisting the government with various medical resources.
Follow and Subscribe Nyasa TV :
Put some if that money into hospitals otherwise God will find that money in your banks
Bravo Vizenge for continuing in the corporate culture and tradition established and championed by the Current Minister of Finance Hon. Felix Mlusu. I have always admired how you complimented each other with a strong work ethic and integrity to build the BEST company in Malawi. These are the results when the right people in positions of Power. Hon. Mlusu who was CEO of NICO for over 20 of his 41 years with NICO will surely deliver the same results for Malawi, and Mr. Vizenge Kumwenda will take NICO to even greater heights.
Godspeed.
Overheads are just too high, that’s why the profit is very low.