By Macdonald Thom:
Malawi Stock Exchange-listed National Bank of Malawi (NBM) has said it will not relent on its efforts to penetrate the southern-African market despite challenges it experienced during its initial effort.
NBM board chairperson Jimmy Lipunga made the remarks in Lilongwe on Monday during an engagement the financial institution had with its key stakeholders.
“We want to continue to grow our profitability. We want to continue to up the game in terms of profit after tax, better returns for our shareholders, but also on the investment front, we will continue to work on cross-border investments in line with our strategy, to make our presence in at least four countries by 2027,” Lipunga said.
The bank invested in Akiba Commercial Bank in Tanzania.
Lipunga said although the bank started its operations at a low note, things are now improving.
“With regard to Tanzania, Akiba, as the statistics and metrics showed, we started with a much bigger loss but right now, we are at a breakeven point. So the story is actually good in general. I wouldn’t be pessimistic,” he said.
One of the bank’s stakeholders, Semacia Kombe, said the meeting was important as it helped foster transparency and accountability.
“This is a very important meeting, we are looking at how our bank is doing, what are the new engagements being done, what are the profits and what are the losses. It is some kind of transparency to us stakeholders,” she said.
She said such meetings will eventually help the bank to be better on the market.
“There is always room for improvement. You cannot take what you have done before to think that you will continue doing the same. The company has to have new strategies every time in order to do better,” said.
The bank’s profit before tax moved from K69 billion in 2022 to K120 billion in 2023, representing 73 percent increase.
The bank saw its assets base growing from K460 billion in 2019 to K1.3 trillion in 2023.
NBM Chief Executive Officer Macfussy Kawawa said the bank will continue engaging its shareholders, customers and other interested parties.
“People may not know the details behind what we publish. We saw today people interested to know how we are doing in our growth strategy within the region. It was an opportunity for us to share with them how the investment is doing and also to hear from them issues they would like us to deal with,” he said.
The Bank is currently implementing a 2023- 2027 strategy. Its pillars are customer centricity and growth, enhanced talent and culture, leveraged technology, innovation and partnerships, driving greater efficiencies and good governance.
