By Benjamin Maona, contributor:
Malawi Stock Exchange-listed National Bank of Malawi (NBM) plc profit-after-tax for the first six months of this year has grown by 19 percent to K42.1 billion from K35 billion during the corresponding period in 2023.
According to half-year financial statement the bank has released and signed by its board chairperson Jimmy Lipunga, director Macleod Nkhoma, chief executive officer Harold Jiya, and Chief operating officer Masauko Katsala, the performance is attributed to the growth in customer deposits which resulted in increase in the loan book and investments in fixed income securities.
Customer deposits increased by 30 percent which largely pushed the bank’s loan book to grow by 42 percent. Investment in fixed income securities grew by 19 percent.
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As a result, net interest and investment income grew by 47 percent.
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The bank also indicates that the revision of the policy rate from 24 percent to 26 percent in February 2024, which further influenced the reference rate, contributed to growth in interest income.
“In addition, there was a 36 percent increase in other income mainly arising from growth in foreign exchange commission from K10.0 billion to K18.8 billion,” reads the report.
The increase in operating expenses was also due to the rise in net impairment losses and loan book write offs, which increased from K1.8 billion to K8.4 billion.
A one-off staff rationalisation exercise for Akiba Commercial Bank in Tanzania that took place during the period also contributed to the rise in operating expenses,” the statement reads.
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Through the statement, the Bank has also given an update on its equity investments and performance of its subsidiaries, UGI and Akiba.
During its annual general meeting (AGM) recently, members of the Minority Shareholders Association hailed NBM plc for its consistency in growing the brand which has seen them getting good dividends.
At the AGM, the Bank announced a profit-after-tax of K72 billion for the year ending December 31 2023.
