National Bank of Malawi plc, continued with positive trajectory in growing its profit after tax, having posted K17.16 billion profit in the year ended December 31 2019.
This represents a 7 percent increase in profits when compared to the K15.97 billion the company reported in 2018.
The bank has however, not recovered from the 2018 fall as in 2017 it posted a profit of over K19 billion.
A summary of audited results published by the bank and co-signed by its Chief Executive Officer, Macfussy Kawawa and Chairman, George Partridge, shows that non-interest income grew by 10 percent while net interest and investment income grew by 12 percent.
The bank has since attributed the development to negative shocks that affected the economy coupled with poor tobacco export receipts compared to 2018.
“Inflation averaged 9.4 percent in 2019 compared to 9.2 percent in 2018 but closed the year at 11.5 percent compared to 9.9 percent in 2018 as a result of increases in food inflation attributed to seasonal factors. In the second half of the year, the banking industry adopted the use of a reference rate which has ranged from 12 percent to 13.4 percent,” reads part of the statement.
On the outlook for 2020 the bank highlights that it is unlikely that the country will achieve a 5.2 percent projected economic growth and further reduction of inflation.
“…achieving the above targets has now been undermined by an unstable operating environment arising from political uncertainty following the nullification of the Presidential election results as this could affect effective policy making and implementation. Climate shocks and the impact of the COVID-19 on the country and its trading partners will also affect the growth prospects,” reads the statement.