Site icon The Times Group Malawi

Nico profit jumps 4% amid economic woes

Nico Life has posted an aftertax profit of K4.8 billion for the year ended December 31, 2015, an increase of four percent from the K4.6 billion recorded in the previous financial year.

In a statement released Wednesday and signed by directors Vizenge Kumwenda and Leonnard Chikadya, the firm says it registered the increased profitability despite the economic challenges that rocked the economy in 2015.

The firm says the tough economic environment posed a challenge to some clients as it affected their ability to honour pension contributions and life assurance premiums.

It has further noted that the weak returns on the stock market affected its financial performance during the year.

Looking ahead, the firm says it expects the local trading unit, the kwacha to stabilise in the short term, boosted by tobacco dollar inflows.

“In the long term, the currency is expected to depreciate due to significant current account deficits and weak foreign direct investment inflows. Inflation will remain high as the kwacha depreciates and food prices will be high due to lower than expected agricultural harvest that is affected by the El Nino weather phenomenon.

“Interest rates are expected to be high as a result of volatility of the liquidity levels and high monetary policy rate,” reads the statement in part.

The company says despite the envisaged challenges, it is well positioned to operate and ensure that continued value adding activities are pursued to benefit all its stakeholders.

“In this regard, we will continue to focus on quality service, improve operational efficiency as we enhance the administration system and invest in human capital.

“We will also continue with the expansion of the distribution channels with the aim of reaching out to the uninsured market as we take advantage of the synergies that exist within the Nico and Sanlam Group of Companies,” says Nico Life.

Exit mobile version