National Bank of Malawi (NBM), the Malawi Stock Exchange (MSE) listed financial institution, has posted a 2017 profit of K19.15 billion, up from K16.6billion from the previous year, registering an after tax profit growth of 15%.
A statement of financial results for the year ending 31st December 2017 indicated that the bank has achieved an overall growth of 19% in the statements of financial position.
The statement signed by NBM Board Chairman George Partridge, Chief Executive Officer Macfussy Kawawa, Chief Financial Officer Masauko Katsala and Board Director Maria Msiska said the financial results have once again, demonstrated the bank’s remarkable resilience in performance in an adverse environment.
The bank paid an interim dividend of K3.3 billion in September 2017 (2016; K3billion) and a second interim dividend amounting to K1.5 billion on 23rd March 2018 (2017: K1.5 billion).
“The directors recommend a final dividend of K4.2 billion (2017:K3.8 billion) making a total of K9.015 billion in respect of 2017 profits representing K19.30 (2016: K17.88) per ordinary share. The final dividend will be paid after the Annual General meeting (AGM) scheduled for June 2018,” reads the statement in part.
“The year started on a positive note with inflation continuing to trend downwards from 20% in December 2016 to 7.1% in December 2017. Consistent with the inflation trend, the policy rate was reduced three times during the year and commercial banks responded by reducing their base lending rates,” said the bank.
The bank also said agricultural production improved due to good weather and there was optimism for a rebound of the economy.
“Notwithstanding the positive trends, economic activity was generally subdued mainly due to low productivity levels on account of the challenges with power supply. Demand for goods and services was negatively affected, attributed to low buying power especially among rural farmers as prices of maize and other agricultural commodities crashed,” reads the statement in part.
The bank made a significant provision of K5.9 billion for non-performing loans (NPL) following the maize export ban which accelerated the crash in maize prices, adversely affecting the ability of commodity traders to service debts with the Bank.
Looking forward to the future, the bank said it has developed a 5 year strategic plan for the period 2018 to 2022 with the objective of consolidating its leadership position in the market.
“Going into the future, the focus will be to delight our customers through acceleration of digitization of products and processes, driving greater efficiencies and entrenching astute governance and risk management practices,” reads the statement in part.
Nyasa Times
