Malawi’s Thriving Economy: NBS 2024 Profit Surges 148%
Key Business Points
- Malawian businesses can learn from NBS Bank’s strategy of investing in digital banking services to expand reach and improve customer access.
- The bank’s success in reducing non-performing loans from 4.9 percent to 4.7 percent demonstrates the importance of effective risk management and early detection of potential defaults.
- Entrepreneurs can take note of the bank’s focus on sectors with growth potential, such as small and medium enterprises and youth-led ventures, to navigate current economic challenges.
NBS Bank has reported a significant increase in profit-after-tax, with a 148 percent growth to K73 billion for the year ended December 31, 2024, from K29 billion in the previous year. This impressive performance is attributed to strong growth in deposits, customer loans, and digital banking services. The bank’s customer deposits grew by 35 percent to K727 billion, while the loan book increased by 53 percent to K235 billion. Notably, the bank’s non-performing loans decreased from 4.9 percent to 4.7 percent.
Digital Lending Platforms have been a key driver of the bank’s success, enabling customers to access salary-backed loans in under five minutes without visiting a branch. This has extended the bank’s reach to areas with no physical presence, such as Chitipa and Nsanje. The bank’s enhanced digital platforms and restructured credit processes have also contributed to better risk management and early detection of potential defaults.
The bank’s share price has also experienced significant gains, climbing 51.5 percent from K114.90 in December 2023 to K174.07 by year-end. By April 2025, the share price had risen further to K343.95, a 97 percent increase since the close of 2024. Despite the current economic challenges, including high inflation, interest rates, and business costs, NBS Bank is well-positioned to navigate these risks by focusing on sectors with growth potential.
Investor and shareholder Benedicto Benankhoma has described the bank’s trajectory as promising, urging further investment in small and medium enterprises and youth-led ventures. This highlights the opportunities available for local entrepreneurs to access financing and grow their businesses. As Malawi’s business community looks to the future, NBS Bank’s success serves as a model for others to follow, demonstrating the importance of investing in digital technologies and focusing on sectors with growth potential.
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