Malawi Stock Exchange listed financial services giant, Nico Holdings Limited, saw its aftertax profit surging by 307 percent in 2017 to hit K11.1 billion thanks to a strong performance of its subsidiaries.
Briefing market analysts and reporters in Blantyre on Thursday, Nico Holdings Chief Executive Officer, Vizenge Kumwenda, said the growth in profitability was fuelled by a strong performance in general and life insurance, asset management and banking.
Kumwenda said the results were also boosted by a strong performance in the equity market.
Among others Kumwenda said the group’s gross revenue increased by 30 percent to K134.4 billion compared to K103.5 billion in 2016.
“Profit before tax increased by an impressive 1081 percent to K16.4 billion compared to restated profit of K1.3 billion in 2016,” Kumwenda said.
He said the prior year comparatives were restated due to 2016 adjustment relating to loan impairment losses in NBS Bank.
Kumwenda said NBS Bank, which raised K11.8 billion last year through a rights issue to solidify its operations has started showing good signs of recovery.
Recently, the bank entered into a technical service agreement with Rabobank of the Netherlands which has enabled NBS to access technical support from a bank of world repute.
“We are convinced that the initiatives we have undertaken at the bank will ensure that we offer a service that meets the needs and expectations of our clients. It is, therefore, pleasing that the bank is now registering profit every month from July 2017.
“Overall the bank is in a loss situation at the end of the year as a result of a loss incurred up to June 2017. However, the loss that the bank has achieved in the year is significantly lower than that in 2016,” Kumwenda said.
He said the bank’s directors will propose a final dividend of K1 per share at its forthcoming annual general meeting which would bring the total paid in 2017 to K1.5 billion as compared to K417 million in 2016.
Looking ahead, Nico Holdings said it looks forward to improved business this year and beyond buoyed by positive developments in the macroeconomic fundamentals.