NBS Bank profit up 162 percent

NBS Bank profit up 162 percent

Post was last updated: February 28, 2020

Profit-after-tax for Malawi Stock Exchange-listed NBS Bank went up by 162 percent to K4.46 billion in the year ending December 31 2019.

The profit rose from K1.69 billion recorded during a similar period in 2018.

NBS Bank Chief Executive Officer, Kwanele Ngwenya, told shareholders and market analysts on Wednesday that the profitability was buoyed by impressive growth in net interest income of 103 percent.

This emanated from growth of the bank’s loan book and money market investments.

Total customer deposits also grew by 21 percent during the year under review.

Ngwenya said during the year under review, the bank invested heavily in human capital development and focused also on investing in Information and Communications Technology.

“As you can see now, we are catching up with the market. The bank that you see today is transformed,” Ngwenya said.

NBS Chief Finance Officer, Vera Zulu, said the journey towards profitability would be partly attributed to restructuring of its balance sheet efficient capital management.

Meanwhile, the bank has recommended the payment of a dividend of K1.019 billion for the year under review, representing 35 tambala per share.

The bank rolled back to profitability in 2018 when it posted an after-tax profit of K1.699 billion from a loss of K1.092 billion in 2017.

In 2016, the bank reported a loss before tax of K4 billion up from the K195 million loss.

Partly, this was due to a drop in interest income and sharp increase in other operating expenses.

But in 2017, NBS Bank embarked on a new path with strategic goals and objectives of being a digitally-driven transactional bank for retail and corporate customers through a deeper understanding of their needs.

It also undertook a rights issue where it raised K11.8 billion to recapitalise and bolster its operations.

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