NBS Bank posts K1.14 billion loss but remains positive
Malawi Stock Exchange (MSE) listed NBS Bank Plc, and its subsidiary, NBS Forex Bureau, have posted a loss after tax of K1.14 billion for the six months ended June 30. This is worse as compared to the K1.38 billion loss after tax during the same period in 2016.
But the bank remains positive following its recapitalisation and restructuring processes.
In an interview, NBS Chief Executive Officer, Kwanele Ngwenya said that with the strategies that have been put in place since April 2017, the bank is on track to not only step out of the red but reclaim its position as one of the leading banks in the country.
“We faced challenges to comply with capital requirements, flaws in risk management and weak governance structures. These are the areas that we have been focusing on improving in the past few months and I am very optimistic and can already see the impact of the strategic initiatives in the half-year results,” he said.
Ngwenya said the prospect of a turnaround in the bank’s performance is even more promising because the bank has invested in new service delivery systems, a new market-oriented organisation structure, accomplished personnel to drive the business and a new five-year strategic plan, which is being driven by the new leadership.
“We have been in the industry for more than 50 years, providing relevant financial solutions that have uplifted the lives of many Malawians.
“We are grateful to our customers for continuing to believe in us. I can assure you that the red bank is back on track and we look forward to the next part of the journey with our customers,” Ngwenya said.
Recently, NBS Bank had a successful Rights Issue to recapitalise the bank where K11.8 billion was raised between May and June 2017, leading to fulfillment of Basel II and Statutory capital requirements.
A Rights Issue is a capital raising strategy, where a company gives its existing shareholders a right to buy further shares in proportion to their existing shares in the company.