Malawi Stock Exchange listed company, National Bank of Malawi, (NBM) plc on Thursday declared a K17.16 billion profit for the year ending December 2019, up from a K15.97 billion profit posted in 2018.
This represents a seven percent jump.
Addressing the bank’s 48th Annual General Meeting (AGM) which was held virtually due to the Covid-19 pandemic, NBM plc board chairman, George Partridge, said non-interest income grew by 10 percent which net interest and investment income grew by 12 percent.
“Overall net revenue grew by 11 percent while operating expenses increased by six percent, notwithstanding staff rationalisation costs that were incurred during the first half of the year. The loan book grew by 13 percent and customer deposits increased by eight percent year-on-year,” Partridge said.
Among other resolutions, the bank declared a final dividend of K4.3 billion making a total dividend of K8.3 billion in respect of 2019 profits.
This represents K17.82 per ordinary share, having already paid an interim dividend of K2.5 billion in September 2019 and a second dividend of K1.5 billion on in March 2020 in respect of the 2019 financial year.
On the operating environment, Partridge said the country witnessed pre and post-elections political tensions which negatively affected the general business environment, adding that the economy experienced some negative shocks occasioned by Cyclone Idai which affected some parts of the Southern Region.
“These factors had a negative impact on our customers’ disposable incomes and as a result, demand for banking services did not grow as envisaged,” explained Partridge.
Partridge also said the severe negative impact of the Covid-19 pandemic on productivity and supply chains on the world economies and on the country will significantly affect growth prospects
Partridge said efforts to expand the bank’s operations beyond the country’s borders, the bank is in the process of acquiring a controlling stake of a bank in Tanzania.
He said the process of securing regulatory approvals both locally and internationally is underway.