Subdued loan book for the Malawi Stock Exchange (MSE)-listed National Bank of Malawi (NBM) plc has reduced the bank’s profit by 16.6 percent to K15.97 billion in the year ended December 31 2018, published financial result show.
Last year, the bank reported profit a after tax of K19.15 billion.
In its published summary of audited results for the year ended December 31 2018, co-signed by the bank’s chief executive officer MacFussy Kawawa and its board chairperson George Partrigde, the bank said despite of the stable environment, economic activity was for a greater part of the year muted, as among other factors, the country continued to experience prolonged power outages which affected customers’ productivity, and therefore, appetite for credit and other banking facilities.
In the year under review, there were increases of 11.2 percent, 21 percent and 5.8 percent in non-interest income, loan book and customer deposits, respectively.
Looking forward, the bank envisages a continuing stable macroeconomic environment resulting in increased commercial activity and, therefore, an improvement in the bank’s performance through its ability to leverage on its strategy and core strengths to address challenges and exploit opportunities in the market.
The bank expects gross domestic product (GDP) to grow by 5.3 percent this year.
Reads the statement accompanying the results: “The agriculture sector will be the mainstay of this growth anchored by a stable macroeconomic environment.
“Downside risks to achieving this growth include the recently experienced flooding and other weather-related shocks as the agriculture sector is still dependent on rain-fed crop production, coupled with power challenges.”
The bank has recommended a final dividend of K7.5 billion in respect of 2018 profits, representing K16.06 per share to be paid after the annual general meetingin June 2019. This is a drop from the previous year’s K19.30 per share dividend. n