Revitalizing Malawi’s Economy: NBS Bank’s Path to Sustainable Business Growth
Key Business Points
- Malawi’s NBS Bank plc has reported a 145% increase in profit after-tax in 2024, surpassing K72 billion.
- The bank is poised for growth, with a strategic vision focused on enhancing customer experience, investing in talent, and improving digital platforms.
- NBS Bank is exploring opportunities in agriculture and agro-processing, with a focus on supporting economic growth and making transactions more affordable for customers.
NBS Bank plc has made a significant announcement in the Malawi business community, revealing a 145 percent increase in profit after-tax in 2024. The bank’s profit surged from K29 billion in 2023 to K72 billion in 2024, a remarkable achievement in a challenging economic environment. High inflation and interest rates, as well as rising costs of doing business, have not deterred the bank from recording growth in profitability and maintaining balanced growth across customer acquisition and operational performance.
According to NBS Bank plc chief executive officer Temwani Simwaka, the bank has invested heavily in its core banking system and digital platforms to ensure it is well-positioned to support economic growth and make transactions easier and more affordable for customers. The bank’s digital lending services have been a success, enabling customers to access personal loans in less than five minutes without physically visiting a branch. This has allowed the bank to extend its services to underserved areas across Malawi, promoting financial inclusion and economic growth.
Simwaka also outlined the bank’s strategy to manage risk effectively, including raising capital thresholds and implementing tighter credit processes. The bank is also investing in productive sectors and exporters to boost foreign exchange generation, which is essential for addressing the country’s foreign exchange shortages. Balancing the needs of importers while growing the supply side is crucial for the bank’s success.
Stock market investor Benedicto Bena Nkhoma expressed confidence in NBS Bank’s direction, citing the bank’s exceptional performance and strong growth path. However, he also highlighted the need for financial institutions to increase investment in youths and small-to-medium enterprises, given Malawi’s median age of 17.8 years. Nkhoma also emphasized the importance of continued investment in digital platforms to meet the evolving needs of customers.
As NBS Bank continues to grow and explore new opportunities, the Malawi business community is likely to benefit from its success. With a focus on agriculture and agro-processing, the bank is well-positioned to support economic growth and promote sustainable development. As Simwaka noted, the bank is embedding environmental, social, and governance practices into its operations to ensure sustainable development. With a strong strategy in place, NBS Bank is set to continue making a significant impact in Malawi’s business sector.
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