Key Business Points
- Strong leadership and management have enabled National Bank of Malawi (NBM) to achieve a record K101 billion profit after-tax in 2024, despite a challenging economic climate.
- NBM’s dividend payout of K6 billion, equivalent to K126.35 per share, demonstrates the bank’s commitment to rewarding its shareholders, a move that is likely to attract more investors and boost the bank’s stock price on the Malawi Stock Exchange.
- Turnaround efforts are underway to address losses at Akiba Commercial Bank, NBM’s Tanzanian subsidiary, with the board taking action to assess and resolve the issues, which could help resolve Malawi’s chronic foreign exchange shortages through external income and dividends, a crucial step towards achieving kulima kwa mpango (planning for the future).
As the Malawi business community looks to the future, the National Bank of Malawi’s (NBM) latest financial results offer a beacon of hope for economic growth and investment opportunities. With a record K101 billion profit after-tax in 2024, the bank has demonstrated its ability to weather the economic storm, marked by high inflation, foreign exchange scarcity, and high interest rates. According to NBM board chairperson Jimmy Lipunga, strong leadership and good management have been key to the bank’s success, allowing it to navigate the challenges and emerge stronger than ever.
The bank’s profitability is a testament to the effectiveness of its management team, which has been able to drive growth and increase income levels. The dividend payout of K6 billion, equivalent to K126.35 per share, is a significant reward for shareholders and a clear indication of the bank’s commitment to delivering value to its investors. This move is likely to attract more investors and boost the bank’s stock price on the Malawi Stock Exchange, making it an attractive option for those looking to kulongaoleansi (invest wisely).
However, despite the bank’s overall success, concerns have been raised over the ongoing losses at its Tanzanian subsidiary, Akiba Commercial Bank. Shareholders, including the Minority Shareholders Association of Listed Company, have expressed frustration at the slow progress in turning around the subsidiary’s performance. According to Joe Maere, a representative of the association, foreign operations such as Akiba could play a crucial role in resolving Malawi’s chronic foreign exchange shortages through external income and dividends. Maere emphasized the need to fast-track reforms and address the issues at Akiba, which could help the bank achieve tsoka litsidwe (prosperity) in the long run.
In response to these concerns, Lipunga reaffirmed that the board has taken action, dispatching a committee and management team to assess the issues and develop a plan to address them. As Lipunga’s three-year term as board chairperson comes to an end, he reflected on the period as one of transformative growth, with income levels more than doubling and profitability stronger than ever. With the bank’s future looking bright, investors and entrepreneurs in Malawi can take confidence in NBM’s ability to drive growth and deliver value, making it an attractive option for those looking to fetsani (grow) their businesses.
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