MyBucks Banking Corporation has recorded a K2.2 billion profit-after-tax for the year ended December 31 2020, up from K1.4 billion recorded during the corresponding period in 2019.
This represents a 53 percent growth.
According to a published summary of audited financial results co-signed by the bank’s board chairperson Francis Pelekamoyo, Board director Morgan Tembo, managing director Zandile Shaba and the chief finance Officer Thomson Kumwenda, the bank continues to show strong performance year-on-year.
The bank’s revenue grew by 26 percent, driven by a 65 percent growth in loans and advances and 25 percent in treasury investments.
Year-on-year, total asset base grew by 58 percent, from K72 billion in 2019 to K114 billion in 2020, on account of a 65 percent growth in loans and advances and a 25 percent growth in treasury investments.
The profit is attributed to growth in interest generating assets, mainly the 65 percent growth in the loan book.
Non-interest revenue grew by 323 percent above the same period in the prior year due to growth in transactions volume in the transactional business and investment income.
Credit impairments were -174 percent below the year before due to decline of the non-performing loan book and concentrated efforts in loan recoveries.
“The decline in credit impairments was due to the bank’s focus on robust credit risk management. The bank continues to place emphasis on recoveries of previously written off loans,” the report reads.
According to the report, operating costs for the bank grew by 81 percent as a result of the acquisition of Nedbank Malawi.
The merger resulted in the bank acquiring additional points of representation and an operationally larger footprint.
Earnings per share for the year increased from K270 in 2019 to K412 in 2020 and Return on equity (ROE) grew from 18 percent in December 2019 t0 27 percent in December 2020.
In its outlook, the bank expects macroeconomic stability to continue in 2021 supported by stable food prices and lower than prior year projected global oil prices.
However, the bank also anticipates that the impact of Covid on certain sectors of the economy will continue to be felt in the medium term.
“The bank will focus on diversifying its revenue base and will continue to focus on impactful cost management. The bank will remain vigilant in monitoring and managing risks related to Covid,” the published summary reads.