NBS sees 150% H1 profit jump

Post was last updated: June 27, 2019

By Taonga Sabola:

KUMWENDA—Good results are trickling in

One of the country’s commercial banks, NBS Bank, has said it expects its profit for the half year ending June 30 2019 to be over 150 percent higher than that of the same period last year.

In a profit warning released Wednesday, NBS Bank Company Secretary, Marsha Machika, said the bank was expected to publish results of the half year financial performance before August 31.

During the first six months of 2018, the bank posted a profit of K479 million.

A 150 percent profit jump could see the bank’s profitability level surging to around K1.197 billion.

This should be great news for NBS Bank customers who have gone several years without dividends as the bank went through a bad patch.

NBS Board Chairperson, Vizenge Kumwenda, recently told shareholders during the bank’s annual general meeting that it remains optimistic of improved profitability despite declining interest rates.

“We as a bank, are looking at that and see, how best we can mitigate the losses that may come from the reduced margins, including increasing the volumes of lending. The good thing is that we have a lot of room to increase lending; so, that will help us to compensate for the reduced rates from lending. Not only that. One of our focus areas is retail banking.

“In that area we need to increase the services we have been offering to customers and, like I said, we are working hard in the area of digital banking to ensure that our customers can access the services on their phones. The other initiative is to come up with new products,” Kumwenda said.

He added that the bank would like to grow its business in the space of bancassurance where it provides services in conjunction with insurance firms in the group.

“There is room there to increase the services we are giving to our clients by encouraging them to come in the space of bancassurance. In the old days we used to be the number three bank in the country and we want to get back to that position,” Kumwenda said.

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