Malawi’s newest bank loses K793 m in first year
Malawi’s newest commercial bank, the New Finance Bank, has posted an after-tax loss of K793 million in its first year of operations, 2015.
The bank has attributed the loss to start up costs and low trading volumes during the early part of the year.
In a statement for the year ended December 31, 2015 released on Monday, the bank says subsequent balance sheet growth and improving interest and non interest income are pointing towards a profitable 2016.
“The bank showed promising growth in its first year of operation, closing the year with a financial position of K5.64 billion with loans and advances contributing K1.33 billion.
“Despite high interest rates and challenging business environment, the bank ended 2015 without any non performing loans. This presents the bank with a solid foundation for credit growth in the coming years,” reads the statement signed by Chairperson Francis Pelekamoyo and Director MZU Tembo.
Looking into the future, the bank says inconsistent rains are likely to compromise agricultural production which will have a negative effect on export earnings and food availability.
The bank has predicted that inflation and interest rates are likely to remain high in the near future.
According to the bank, government’s current intensified efforts to ultilise the country’s rich natural resources provides hope for increased crop production and diversification.
NFB says innovative products and excellent customer service will provide the base for its growth in 2016.
“State-of-the-art ATM, mobile and internet banking services will be introduced to provide customers with the most convenient, stress free banking experience when accessing the bank’s wide array of tailored savings and current account products.
“In addition to this, loan products and support for small and medium enterprises will be introduced to ensure that the bank does its part in driving the economic recovery,” says NFB.
NFB was licensed by the Reserve Bank of Malawi in May 2014 and was incorporated by the Companies Act in July the same year.