NBS Bank after-tax profit for the year ended December 31 2013 jumped 163 percent to K1.9 billion, according published extracts of consolidated results.
The Malawi Stock Exchange (MSE)-listed bank and its subsidiary NBS Forex Bureau Limited reported profit before tax of K2.9 billion during the year, representing 92 percent growth rate while total gross income stood at about K21.5 billion comprising of K17.2 billion interest income and K4.3 billion non-interest income.
According to the results co-signed by NBS Bank board chairperson Felix Mlusu and the bank’s director Estelle Nuka, total deposits grew by 19 percent due what has been described as bank’s strategy on deposit mobilisation coupled with improved customer service.
The results also show that gross advances grew by 6 percent due to reduced borrowing as a result of high lending rates while total assets remained flat due to reduced lending and use of cash balances to settle loan obligations.
But despite the 2013 improved performance, the bank’s board has recommended that no dividend be declared and paid in respect of the year as NBS augments its capital to remain resilient and to be fully compliant with Basel II requirements.
For the period up to June 2013, NBS Bank profit jumped by 703 percent to K514 million from K64 million the prior period, according to the bank’s summary statements.
During the 2013 first half, NBS Bank profit before tax rose by about 161 percent to K851 million from K326 million the year before.
Regardless of the performance, during the period NBS Bank did not consider payment of an interim dividend, arguing that it needed to augment the bank’s capital.
In 2012, NBS Bank did not also pay out dividend to its shareholders to use the profits to increase the capital base of the company to meet the requirements of Basel II effective in January 2014.