Malawi Stock Exchange-listed National Bank of Malawi (NBM) plc has posted a profit-after-tax of K22.45 billion for the year ended December 31 2020.
The profit is 31 percent higher than the K17.16 billion the bank realised during the corresponding period in 2019.
An extract of a financial statement co-signed by the bank’s board chairperson George Partridge and Chief Executive Officer Macfussy Kawawa attributes the surge in profit to control of expenses.
The statement says, during the year under review, non-interest income grew by 17 percent, net interest and investment income grew by nine percent, overall net revenue grew by 12 percent whereas impairment losses reduced by 45 percent.
It says customer deposits increased by 27 percent during the period.
Going forward, the bank envisages a continuing stable macroeconomic environment which it says could propel further growth of business.
“This, however, is dependent on how quickly the Covid situation is brought under control and economic activity returns to normality. In addition, the acquisition of controlling stake in ACB [Akiba Commercial Bank of Tanzania] has opened the door for the group to realise its regional diversification strategy,” the statement reads.
NBM announced to have entered into negotiations to further acquire 24 percent stake in the bank after completing the acquisition of a 51 percent controlling stake towards the end of 2020.
Meanwhile, the bank’s directors have recommended to pay a final dividend of K8 billion, up from K4.3 billion paid last year.
This brings the total dividend to K13 billion in respect of the 2020 profits, representing K27.84 per ordinary share, up from K17.78 per share in 2019.
Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk.
He is however flexible as he also writes about current affairs and national issues.