National Bank of Malawi (NBM) has posted a staggering K71.96 billion profit after tax for the financial year ending December 31 2023, a published summary of audited results has shown.
This represents a 56.62 percent jump in profit when compared to the K45.9 billion which the bank reported in 2022.
Among other things, customer deposits increased by 20 percent year on year while the bank’s loan book grew by 31 percent and investment in fixed income securities grew by 10 percent.
“These results were largely driven by growth in customer deposits which resulted in increases in the loan book and fixed income securities. Consequently, net interest and investment income grew by 33 percent.
“In addition, there was an 86 percent increase in other income mainly arising from growth in foreign exchange commissions from K12.8 billion to K25.5 billion. Overall net revenue grew by 50 percent. Operating expenses increased by 25 percent within the average inflation for the year. On the other hand, net impairment losses continue to increase, reflecting the realities of the tough operating environment,” the statement reads.
Its board chairperson Jimmy Lipunga said all subsidiaries of the bank posted profits that contributed positively to the group performance except for Akiba Commercial Bank (ACB) in Tanzania and an associate company, United General Insurance, which posted losses.
“Positive trends continue to be registered in the two entities where the results improved significantly from the previous period. Consequently, the losses registered for Akiba Commercial Bank and UGI were much lower than those of the prior period,” Lipunga said.
NBM Chief Executive Officer Macfussy Kawawa said the future is promising.
“Resumption of the IMF-supported ECF programme is expected to unlock foreign exchange inflows going into 2024, which will in turn support importation of raw materials and promote economic activity. The positive outlook is, however, clouded by El Niño-induced weather conditions, and a highly uncertain global economic and geopolitical environment. Inflation is likely to remain elevated in 2024.
“We envisage a continuing challenging operating environment due to the factors enumerated above. This notwithstanding, we expect to sustain its enviable performance through our ability to leverage on core strengths, address challenges and exploit opportunities in the market,” Kawawa said
The bank has since recommended a final dividend of K23 billion making a total dividend of K48 billion in respect of 2023 profits, representing K104.94 per ordinary share. The final dividend will be payable after approval by the annual general meeting scheduled for June 2024.
