MyBucks Malawi profit up 130% to K1.8bn

MyBucks Banking Corporation Malawi has posted a 130 percent increase in profit after-tax in the half-year ended June 30 2020 boosted by growth in its loan book.

Published financial results jointly signed by managing director Zandile Shaba, director Morgan Tembo and chief finance officer Thomson Kumwenda show that the profit has climbed to K1.8 billion from K817 million during the same period last year.

The loan book grew by 63 percent to K34 billion from K21 billion while customers’ deposits jumped by 98 percent year-on-year from K35.9 billion to this year’s K71.2 billion, the results show.

The bank has explained the increase in operating expenses  during the review period from K4 billion to K7.5 billion.

 “Operating costs grew by 84 percent year-on-year to support the growth of the group after the successful acquisition of Nedbank Malawi combined with business rationalisation costs and the expansion of the points of representation of MyBucks brand across the country.”

The bank said it remains upbeat and committed to offer “a consistent and relevant customer experience”.

To achieve this, MyBucks Malawi said it will enhance its digital offering.

Reads the statement: “With digital platforms come cost reductions and the ease of doing business, while passing on the benefits to our customers.

“The group will also focus on the rationalisation of its cost base, the effective and prudent management of risks and liquidity and diversification of its balance sheet.”

In the period under review, MyBucks Malawi finalised the acquisition of 100 percent shares and claims of Nedbank Malawi.

The bank said the move was a strategic acquisition that has seen it expand its retail product offering in areas where it did not have presence.

MyBucks said it will continue to expand using organic growth, acquisitions and mergers where valuable opportunities exist.