Malawi’s NBM Delivers Record K59bn Dividend to Shareholders
Key Business Points
- Record dividend payout: National Bank of Malawi (NBM) shareholders will receive a record dividend payout of K59 billion, representing a K126.35 dividend per ordinary share.
- Strong financial performance: NBM’s net profits surged to K101 billion in 2024, despite challenging economic conditions, with the bank delivering outstanding results and leading the market in terms of profitability.
- Regional expansion concerns: Shareholders raised concerns about the performance of Akiba Commercial Bank, NBM’s Tanzanian subsidiary, which reported losses, emphasizing the need for a turnaround to support NBM’s regional expansion and foreign exchange generation.
The National Bank of Malawi (NBM) has announced a record dividend payout of K59 billion, following an exceptional 2024 performance that saw net profits surge to K101 billion. The dividend announcement was made during the bank’s annual general meeting, where directors recommended a final dividend of K28.6 billion, bringing total dividends for 2024 to K59 billion. This represents a significant increase from the previous year’s total dividend of K48 billion. Kupezeka kwa faida, or increasing profits, is a key aspect of NBM’s success, and the bank’s strong financial performance is a testament to its ability to navigate challenging economic conditions.
According to Board Chairperson Jimmy Lipunga, the bank has delivered outstanding results despite high inflation, foreign exchange scarcity, and elevated interest rates. Kudutsa madola, or making profits, is a key objective for any business, and NBM’s ability to do so in a difficult economic climate is a notable achievement. However, shareholders raised concerns about the performance of Akiba Commercial Bank, NBM’s Tanzanian subsidiary, which reported losses during the period under review. Shareholder Joe Maere praised the bank’s overall performance but expressed frustration over the slow turnaround at Akiba, emphasizing its strategic importance for NBM’s regional expansion and foreign exchange generation.
Maere highlighted that investing outside Malawi represents a crucial solution to the country’s foreign exchange challenges, noting that the Tanzanian economy offers greater growth potential than Malawi’s increasingly saturated market. Kufanya biashara katika nchi nyingine, or doing business in other countries, is a key strategy for NBM’s growth, and the bank’s ability to expand its operations in the region will be critical to its success. Addressing shareholder concerns, Lipunga acknowledged that Akiba remained the only subsidiary reporting losses but assured investors that corrective measures were being implemented.
The dividend payout comes as Malawi’s banking sector continues to benefit from high interest rates on government securities, though institutions face challenges from foreign exchange shortages and inflationary pressures. Kukabiliana na changamoto, or overcoming challenges, is a key aspect of business success, and NBM’s ability to navigate these challenges will be critical to its continued growth and profitability. As the bank looks to the future, its ability to balance its domestic operations with its regional expansion plans will be key to its success. With its strong financial performance and commitment to growth, NBM is well-positioned to continue to thrive in the competitive Malawian banking sector.
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