Centenary Bank has registered a profit-after-tax of K970.4 million for the half year ended June 2023, a performance seen as a step towards recovery from a two-year losses.
Published financial results show that the bank’s overall profit peaked at K970.4 million during the period under review compared to a loss-after-tax of K959 million during the corresponding period the previous year.
The bank has attributed the growth to the capital injection made at the beginning of this year following the change in shareholding.
“The group has achieved a remarkable turn-around from the adverse performance that was prevalent in the past two years. All key performance areas are showing signs of recovery and are pointing in the right direction,” reads the statement jointly signed by the bank’s chairperson Francis Pelekamoyo, chief executive officer zandile Shaba, chief finance officer Chimwemwe Midiani and board director Morgan Tembo.
According to the statement, the group earned K5.3 billion in net interest income compared to the preceding year’s net interest income of K3.3 billion, representing 59 percent income growth which has been attributed to reduction in cost of funding.
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The bank saw its noninterest revenue increasing by 59 percent, while total income also grew by 64 percent.
The statement shows that impairment charges on loans and advances to customers rose by 111 percent, and the bank’s assets grew by 12 percent while operating costs also rose by 14 percent.
On outlook, the financial institution says it expects macroeconomic pressures to persist in the second half of this year with sustained pressure on the Kwacha and rising inflation.
It adds that it expects economic pressures, including the aftermath of Cyclone Freddy, to affect businesses and customer’s disposable income and ability to meet their contractual obligations.
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“We will continue to focus on improving customer satisfaction and efficiencies, upgrading our systems, and driving the digitalisation agenda to grow the business and enhance customer experience,” the financial statement adds.
This is the first year running since shareholding of the bank changed from MyBucks Group to Centenary Rural Development Group Limited and Lilongwe Archdiocese of the Catholic Church, who hold 51 percent and 49 percent, respectively.
