National Bank of Malawi (NBM) plc has registered a profit after-tax of K12.8 billion in the half-year ended June 30 2021, a 41 percent increase from K9.1 billion during the same period last year.
The unaudited interim results released yesterday were jointly signed by board chairperson George Partridge, chief executive officer Macfussy Kawawa, board director Dorothy Ngwira and chief finance officer Masauko Katsala.
The Malawi Stock Exchange-listed bank’s financial results incorporate, for the first time, the performance of Akiba Commercial Bank plc, recently acquired in Tanzania, which conducted a clean-up of the loan book that resulted in a loss of K1.5 billion.
The result show that net interest income increased by 36 percent while non-interest income jumped by 51 percent.
At the same time, operating expenses increased by 41 percent while net impairment on loans and advances grew by 26 percent to K4.8 billion, a jumped from last year’s K3.8 billion.
“Customer deposits and the loan book grew by 43 percent and 10 percent respectively, year-on-year. Investment in Treasury bills and Treasury notes grew by 49 percent,” reads the statement in part.
Commenting on the economy, NBM said the economy continued to be negatively impacted by the Covid-19 pandemic and scarcity of foreign currency, which resulted in 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,” reads the statement.
NBM also registered growth in volumes of electronic transactions as customers used self-service channels more in view of the prevailing Covid-19 environment.
The bank said 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 the statement.
The bank’s board of directors have resolved to pay an interim dividend of K5 billion, representing K10.71 per share.
This is a jump from K2.5 billion, representing K5.35 per share paid during the same period last year.