Nico Holdings plc has registered a profit after-tax of K7.64 billion in the half year period ended June 2020, a five percent increase from the previous year’s K7.29 billion.
The Malawi Stock Exchange (MSE)-listed financial services group has attributed the increase to good performance from the banking and asset management businesses.
A statement accompanying the financial results co-signed by Nico Holdings plc managing director Vizenge Kumwenda and interim chairperson Gaffer Hassam said the good set of results were achieved despite a challenging global and local operating environment.
Reads the statement in part: “Performance of the investment portfolio was satisfactory and was mainly driven by improved returns from the money and capital market. This was despite the lower than expected revaluation surpluses on the stock market.
“The group was also able to register strong performance due to the size, nature and structure of investment portfolios.”
On segmental performance, Nico General Insurance, which falls under the financial services firm’s general insurance business, recorded a five percent growth in gross written premiums to K17.44 billion from K16.54 billion in the corresponding period last year and a decline in profit of K102.13 million, from K822.12 million in the similar period the prior year.
Profits from the group’s life insurance and pensions were also lower compared to the prior year with a 31 percent decrease to K582.82 billion.
In the asset management segment, Nico Asset Managers Limited registered a six percent growth in assets under management to K551.82 billion from K442.52 billion in 2018.
In its commentary, Nico Holdings plc said despite the performance the business also registered a profit of K1.9 billion, representing a116 percent growth.
NBS Bank plc, which falls under the firm’s banking segment, delivered good results with a101 percent growth in its profit to K2.84 billion from K1.41billion in the corresponding period.
With the local economy and others worldwide experiencing unprecedented economic turmoil as a result of the impact of Covid-19 pandemic, the firm says it sees a challenging business environment but it is well positioned to manage the risks appropriately and looks forward to doing more profitable business for the rest of the year.
The group has since resolved to pay an interim dividend of K667 million at 67 tambala per share, up from K626 million at 60 tambala per share paid in the similar period last year.