NBS posts record K18.9 billion profit
Malawi Stock Exchange-listed NBS Bank has registered a 146 percent jump in profit-after-tax for the year ended December 31 2022, the bank’s published financial statement has shown.
The bank made a profit-after-tax of K18.9 billion in 2022, up from K7.7 billion profit reported in 2021.
The performance was despite volatility of the operating environment characterised by a 25 percent Kwacha depreciation, power woes, fuel shortages, high inflation and high interest rates.
“Both corporate and retail segments grew significantly in the year. The bank plans to achieve further growth through the five-year strategy covering the period from 2022 to 2026 whose focus is investment in technology, efficient balance sheet management and providing excellent customer experience,” the statement reads.
NBS Bank Chairperson Vizenge Kumwenda said the bank registered a record net interest income growth of 67 percent in 2022 from K30.8 billion to K51.4 billion compared to a similar period in 2021 largely because of growth of the loan book and effective management of investments in money market instruments.
“Non-interest revenue registered an increase of 26 percent to K14.2 billion against K11.1 billion reported in 2021 on account of increased foreign currency trading revenues. Operating expenses grew by 30 percent to K35.6 billion, up from K27.3 billion largely due to the impact of the 25 percent devaluation of the currency in May 2022 and adjusted staff costs to cushion the impact of the high inflation and the currency devaluation,” Kumwenda said.
The bank expects interest rates to remain elevated in the short-term resulting in reduced appetite for new capital investments and a potential increase in credit impairments in the banking sector.
Minority Shareholders Association of Listed Companies General Secretary Frank Harawa said the performance will enhance excitement among shareholders.
“The bank issued a trading statement which indicated that profits of the company will be higher than the previous year. This triggered activity on the counter and moved its share price; so, this development may induce a further rise in the share price for the counter,” Harawa said.
