The National Bank of Malawi (NBM) plc has declared a profit before tax of K120.13 billion, having paid K48.17 billion in taxes. This announcement, dated February 28th, 2024, signed by the Bank’s Board Chairperson Jimmy Lipunga, Director Dorothy Ngwira, CEO Macfussy Kawawa, and Chief Finance Officer Masauko Katsala, attributes the profit surge to increased customer deposits, resulting in an impressive 56.62% growth compared to the previous year.
The bank’s net interest and investment income soared by 33%, while other income surged by 86%, primarily driven by a 99% increase in foreign exchange commissions. Despite a 25% rise in operating expenses, net revenue surged by 50%. However, the statement notes a concerning trend of increasing net impairment losses, reflective of a challenging operating environment.
Despite these challenges, customer deposits rose by 20%, loans by 31%, and investment in fixed income securities by 10%. Subsidiaries of the Bank, except for Akiba Commercial Bank (ACB) in Tanzania and United General Insurance, posted profits, albeit ACB and UGI showing improved results compared to the previous period. Foreign exchange challenges persisted due to a 63% devaluation of the Malawi kwacha, compounded by weather shocks and geopolitical uncertainties. Despite these obstacles, the bank anticipates a 3.2% economic growth supported by increased public investment and recovery in various sectors. The bank aims to sustain its performance by leveraging core strengths, addressing challenges, and seizing opportunities in the market. The Directors propose a final dividend of K23b, totaling K48.0b in dividends for 2023, subject to approval at the Annual General Meeting scheduled for June 2024.
The second interim dividend of K14 billion will be paid in April 2024, following the first interim dividend of K11 billion in September 2023.
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