Malawi Stock Exchange-listed NBS Bank has registered a 148 percent increase in profit-after-tax for the year ending December 31, 2024.
In its published financial statements, the bank shows that it recorded a K72.99 billion profit, higher than the K29.38 billion recorded in 2023.
The bank has attributed the performance to significant growth in its core business areas.
For example, net interest income surged to K160 billion, representing a 139 percent increase from K67 billion reported in 2023.
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This growth was driven by substantial expansion in money market investments and the loan book, which increased by K366 billion and K86 billion, respectively.
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The bank’s non-interest income also showed considerable improvement, rising from K34.95 billion in 2023 to K45.19 billion in 2024.
This growth was primarily attributed to higher trade finance volumes and increased adoption of digital platforms, which drove transaction volumes.
Additionally, the group registered growth in foreign exchange trading income in both the bank and its subsidiary, NBS Forex Bureau Limited.
NBS Chief Financial Officer Ernest Tembo said despite a 57 percent increase in total operating expenses to K75.84 billion, driven by new business activities, project expenses, inflation and a slight depreciation of the Kwacha, the bank’s cost-to-income ratio improved from 47 percent to 37 percent.
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“This indicates that income growth significantly outpaced the rise in operating expenses. Credit impairments remained well-managed at K4.72 billion, only marginally up by 3 percent from K4.56 billion in 2023, with non-performing loans staying within the bank’s risk appetite,” Tembo said.
The group’s balance sheet expanded with total assets closing at K1.19 trillion, an 81 percent increase from K657.72 billion as of December 31, 2023.
Customer deposits grew by K189 billion year-on-year while funding from financial institutions and long-term loans also contributed significantly to the balance sheet expansion.
NBS Board Chairperson Vizenge Kumwenda said current and savings account balances accounted for 56 percent of total customer deposits as of December 31, 2024, up from 52 percent a year earlier.
He added that the improved deposit mix would contribute to a better net interest margin in 2025.
“Following these strong results, NBS Bank has announced a total dividend of K31.73 billion from 2024 profits, representing K10.90 per share, more than double the K13.21 billion (K4.54 per share) paid out in 2023,” Kumwenda said.
