National Bank posts K22.4bn after-tax profit
National Bank of Malawi (NBM) plc has registered a group profit after-tax of K22.45 billion from K17.16 billion in 2019, representing an increase of 31 percent in the year ended December 31 2020.
In a statement jointly signed by board chairperson George Partridge, chief executive officer Macfussy Kawawa, chief finance officer Masauko Katsala and board member Dorothy Ngwira, the bank said there was significant growth in non-interest income of 17 percent while net interest and investment income grew by nine percent.
Reads the statement in part: “Overall net revenue grew by 12 percent. The bank continued to control expenses within inflation. Operating expenses increased by seven percent while impairment losses reduced by 45 percent.
“Customer deposits increased by 27 percent year-on-year while the bank’s loan book grew by six percent largely on account of the Covid-19 pandemic.”
During the year, the bank also announced that it entered into negotiations to further acquire 24 percent stake in Akiba Commercial Bank (ACB) in Tanzania after completing the acquisition of a 51 percent controlling stake towards the end of the year 2020.
The bank’s board of directors have recommended to pay a final dividend of K8 billion, up from K4.3 billion paid last year, making a total dividend of K13 billion in respect of 2020 profits.
This represents K27.84 per ordinary share, up from K17.78 per share in 2019.
Reads the statement: “The bank paid an interim dividend of K2.5 billion in September 2020 [2019: K2.5 billion] and a second interim dividend amounting to K2.5 billion on 31 March 2021 [2019: K1.5 billion].
