NBS UPBEAT ON 2018 PROFIT GROWTH

By Steven Godfrey Mkweteza

NBS bank p/c, a subsidiary of the Nico Holdins p/c says it has registered a profit after tax of 1.699 billion kwacha in 2018.

The bank further said that as compared to a loss after tax of K1.092 billion kwacha reported in a similar period in 2017.

Board chairperson of the bank vizenge kumwenda described this as a good development looking at the bank’s profis downward trend for the past years.

Kumwenda told members of the bank during the annual general meeting{AGM} held in Blantyre that the profit is a result of the turnround strategy the bank has been implementing since 2017

In 2017, bank made losses of 2 billion, a development which led the bank not declare dividends to its shareholders since then.

According to Kumwenda, the board of directors for the bank has not not recommended the payment of any dividend for the year ended 2018 as the bank was still on its transformation journey.

He said the bank is still investing on expansion of the business and optimization of the systems.

Kumwenda added that managing capital will remain a priority in 2019 and beyond.

” The bank plans to continue growing capital organically through profits, optimization of the statement of financial position and recovery of previously written off debt. in the year aheadf, the bank will review the composition of its capital,” said Kumwenda.

He cited net interest income which grew by 35 percent as a result of the increased investments in short term placements with financial instititions.

In addition, Kumwenda said that non interest income which made up transaction fees and forex trading income increased by 52 percent year on year.

Kumwenda said that current and saving accounts balnces grew by 12 percentage point, saying customers continued to place their confidence in the bank’s new strategy and investments in new online and branch infrastructure.

NBS bank p/c was registered as a financial insititution under under the banking act on March 1, 2004 and commenced banking operations on July 1, 2004. The bank was listed on the Malawi stock exchange in June 2007