NBM posts K12.8 billion half year profit
National Bank Towers and Business complex captured at night
Listed National Bank of Malawi (NBM) plc has registered a group after tax profit of K12.8billion up from K9.1 billion recorded during the first half of the previous year, representing an increase of 41%.
Announcing the unaudited interim results for the Bank for the six months period ended 30th June 2021, NBM plc said in a statement signed by its Board Chairman George Partridge, Chief Executive Officer Macfussy Kawawa, Board Director Dorothy Ngwira and Chief Finance Officer Masauko Katsala that the results incorporate for the first time the performance of recently acquired foreign bank, Akiba Commercial Bank (ACB)
“The results incorporate for the first time the performance of Akiba, the recently acquired subsidiary in Tanzania which conducted a clean-up of the loan book that resulted in a loss of K1.5 billion,” reads the statement in part.
“Net interest income increased by 36% while non-interest income increased by 51%. Operating expenses increased by 41% whereas Net impairment on loans and advances grew by 26% to K4.8b (2020: K3.8b). Customer deposits and the loan book grew by 43% and 10% respectively, year on year. Investment in Treasury bills and Treasury notes grew by 49%,” informs the bank in the statement.
NBM plc said the economy continued to be negatively impacted by the Covid-19 pandemic and scarcity of foreign currency which resulted into upward pressure on the exchange rate and inflation.
“While some sectors are showing some signs of rebounding, Tourism and Service sectors remained depressed. The demand for the Bank’s credit products in these sectors remained subdued while the expected credit losses increased. On the other hand, the Bank registered growth in volumes of electronic transactions as customers used self-service channels more in view of the prevailing Covid-19 environment,” reads the statement in part.
On the outlook, the Bank noted that the economy is officially projected to grow by 3.8% in 2021.
“In the absence of long-term safety nets, the impending closure of the tobacco selling season and the supply and demand imbalances being experienced on foreign exchange, continued pressure on the exchange rate is expected. This coupled with the impact of the third wave of Covid-19, may dampen the growth prospects. In spite of the above, the Bank remains optimistic and expects to continue with its strong performance in the second half of the year,” reads part of the statement.
The Board of Directors for the bank resolved to pay an interim dividend amounting to K5.0b (2020: K2.5b) representing K10.71 per share (2020: K5.35 per share). The Dividend will be paid on 24th September 2021 to members whose names appear on the register as at the close of business on 3rd September 2021.
