NBM plc holds virtual AGM
Partridge (centre) addressing the virtual AGM flanked by NBM Chief Executive Officer Macfussy Kawawa (R) and Company Secretary Zunzo Mitole (L)
Listed National Bank of Malawi (NBM) plc on Friday 4th June 2021 held its 49th Annual General Meeting (AGM) virtually where it declared a profit after tax of K22.4 billion for the year ending December 2020 despite operating under Covid-19 pandemic and political uncertainty situations.
Addressing the AGM, NBM plc Board Chairman Dr George Partridge said the economic and operational landscape for 2020 was defined by the COVID-19 pandemic and political uncertainty in the run up to the June Fresh Presidential elections and expected economic growth for year 2020 was revised downwards to 0.6% from a pre-pandemic estimate of 5.5%.
“Bank performed very well in spite of the operating environment. The Bank posted a group profit after tax of K22.45b representing an increase of 31% from K17.2b reported in respect of 2019 financial results. Non-interest income grew by 17% while net interest and investment income grew by 9%. Overall Net revenue grew by 12%. The Bank continued to control the growth of expenses within inflation. Operating expenses increased by 7% while net impairment losses reduced by 45%,” said Partridge.
Partridge noted that the economy is expected to grow by 3.5% in 2021 driven by an improved operating and macroeconomic environment due to a manageable COVID-19 pandemic as a result of availability of vaccines through-out the world.
He also told the shareholders that NBM plc completed the acquisition of 51% controlling stake in Akiba Commercial Bank (ACB) in Tanzania in January 2021 after securing all regulatory approvals both locally and with Tanzanian authorities.
“Negotiations are still on going to acquire a further 24%. I would like to thank and congratulate the Board and Management for working tirelessly to ensure successful completion of the transaction, marking our entry into the region,” said Partridge.
During the virtual AGM, a shareholder Stain Kaunda asked NBM board on what it was doing on the long queues outside its various service centres as some of the preventative measures of the Covid-19 pandemic but also a potential to facilitate further spread of the pandemic.
Responding to the question, Partridge said in its current 5 - year strategy the Bank embarked on a digitalization drive whose objective, among others, was to offer various products and services that customers can access by themselves without having to come to a physical service centre.
“This was seen to be the more sustainable and cost-effective way of reducing the queue, way before Covid-19 pandemic. Among other initiatives which include mobile banking platforms like Mo626 digital and internet banking which are accessed remotely, the Bank has also interlinked its digital services with all banks in the country through Natswitch, Mobile operators and worldwide through Visa and MasterCard allowing our customers to do business without requiring a banking hall.”
“As a consequence of these initiatives, over the past few years the percentage of transactions the Bank handles through digital platforms has risen from about 85 % to over 91% of all transactions processed. The Bank is now intensifying civic education of its customers,” responded Partridge.
The AGM was also notified of the appointment of Macleod Nkhoma as a Director on March 2020 and Mr Bernard Ndau who was appointed to the board in February 2021. It was announced that John Biziwick retired from the bank in July 2020.
The bank also proposed a final dividend of K8 000m (2019: K4 300m) for the year with the first interim dividend of K2 498m (2019: K2 498m) paid to shareholders in September 2020 and a second interim dividend of K2 500m (2019: K1 500m) was paid on 30 March 2021.
