Malawi Stock Exchange – listed NBS Bank continued with it financial turnaround in the first half of 2020 as it has posted a 102 percent jump in profitability.
In a statement on Wednesday the bank says in the first six months of 2020 ended June 30, it posted a profit after-tax of K2.8 billion as compared to K1.4 billion recorded during the same period last year.
The bank has attributed the bullish financial performance in the first half of the year to a strong performance in net interest income.
NBS Bank Chief Executive Officer, Kwanele Ngwenya, said in an interview that the significant growth in profitability shows that the bank continues to perform consistently, adding that the results are evidence of all the hard work and diligence that has been put into turning around the organisation.
Ngwenya, said the management team has maintained a steady course in the fulfilment of the bank’s five year strategy in which good governance, risk management, growing a quality loan book, money market investments, robust ICT systems and hardware; and investing in the bank’s staff were the core of the agenda.
“We are reaping the fruits of team effort and collaboration. Every member of staff rallied behind the vision and this is the power of working as one team; the Red Brigade” Ngwenya lauded with pride.
According to the bank’s statement of financial position, net interest income grew by 55 percent in the first half of 2020 as compared to a similar period in 2019, largely as a result of prudent management of investments in money market instruments and loan book growth.
The statement further says the banks’ net income rose by 38 percent while customer deposits increased by 22 percent.
It adds that its capital ratio now sits at 24.6 percent, with an annualized return on equity at 31 percent.
The bank’s positive strides have been topped off by an increase in the share price at 44 percent, making it one of the top performing organizations when it comes to MSE movement this year.
Ngwenya observed that the groundwork for the bank has been laid and now is the time to build on it.
“The bank will continue to drive a customer centric culture, create a conducive environment for staff, capitalise on innovative financial solutions whilst ensuring operational efficiencies in order to give a good return to our shareholders and stakeholders,” Ngwenya said.