By Benadetta Chiwanda Mia:
NICO Holdings plc—owners of NBS Bank, Nico General Insurance and Eris Properties—posted a consolidated profit after tax of K134.8 billion for the year ended December 31, 2024, marking a 130 percent increase from the K58.6 billion recorded in 2023.
The performance was announced during the company’s 55th Annual General Meeting, held in Blantyre on Tuesday.
Listed on the Malawi Stock Exchange (MSE) since 1996, the company also doubled its dividend payout in the 2024 financial year to K20 per share following the approval of a K4 final dividend at the AGM, translating to K20.8 billion in total—up from K10 per share or K10.4 billion in 2023.
- Advertisement -
Gross revenue for 2024 grew by 83 percent to K516.4 billion, up from K282.1 billion the previous year.
- Advertisement -
Among its subsidiaries, NBS Bank led in performance, registering a profit after tax of K73 billion, a 148 percent increase from K29.4 billion in 2023.
Nico Life Insurance Company also delivered strong results, recording a 75 percent increase in profit after tax to K44.9 billion, up from K25.7 billion.
Speaking at the AGM, Nico Board Chairperson Elias Ngalande described the company’s performance as satisfactory, noting that the group registered remarkable growth despite facing a 44 percent devaluation of the Malawi kwacha in late 2023.
He attributed the strong results to solid performance across all business units, particularly in banking and life insurance.
- Advertisement -
“We have beaten almost all of our targets. We had a strategy of growing higher, and I think we have achieved that this year. It was a very tough year, coming on the back of the devaluation and a significant rise in prices, and probably also the fact that most of our customers really struggled financially,” Ngalande said.
He acknowledged that the macroeconomic environment remains challenging, with persistent inflation and foreign exchange scarcity.
“The turbulence in the economy is still unrelenting. We had expected a significant drop in the inflation rate by now, but it has only declined by two or three percentage points,” he said.
However, Ngalande expressed optimism about the group’s prospects, revealing plans to expand operations beyond Malawi in order to address forex challenges.
“Strategically, we now recognize forex earnings as a key issue. We are eyeing investments across the Sadc region and East Africa. So we’ll be pursuing those because if we get them, then at least we’ll be earning our own forex within the group and that should be a potential help,” he added.
Meanwhile, Minority Shareholders Association of Listed Companies (Misalico) General Secretary, Frank Harawa, commended the 100 percent increase in dividend payouts.
“The company has performed exceptionally well in terms of profitability and share value gains on the Malawi Stock Exchange. The K134 billion profit is likely the highest on the stock market,” Harawa said.
However, he raised concerns over the accumulation of unclaimed dividends and urged the company to trace their rightful owners before new regulations on unclaimed dividends come into effect.
