NBS Bank and its subsidiary, NBS Forex Bureau Limited have reported a loss before tax of K4.8 billion for the year ended December 31, 2016 according to a statement on results signed by the bank’s Chairman, Vizenge Kumwenda.
The bank has attributed the loss to a drop in interest income and sharp increase in other operating expenses.
Total gross income made was 10.3 percent lower than the profit realised in 2015.
But the bank says it is implementing a new five year business plan that will enable it to successfully differentiate itself in the market, offer customised services and solutions for clearly segmented existing and new customers to deliver value for its various stakeholders.
NBS says it has already identified a technical partner who will work closely with the local leadership to deliver on this new business plan.
“The bank has embarked on re-capitalisation project which was approved by the shareholders on December 29 2016 at an Extra-ordinary General Meeting to augment its capital position. After recapitalisation, the bank shall be able to take on more business which shall result in increased income.
NBS has forecast a return to profitability in the third quarter of 2017, after the recapitalization process is complete.
Looking forward, NBS expects the economy to rebound mainly on account of improved food situation. It also expects interest rates to remain high as the authorities attempt to tame inflationary pressures.
Due to the less than satisfactory financial performance, NBS Board of Directors have not recommended the payment of dividend in respect of the year ended December 31 2016.
NSB Marketing Manager, Timothy Ngwira, was yet to respond to our questionnaire when we went to press.
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