When other Institutions were complaining about unfavorable business conditions, the National Bank of Malawi (NBM) plc made an impressive profit after tax of 71.96 billion Kwacha and paid to the Malawi government a whopping 48.17 billion Kwacha- corporate tax in 2023.
This has been revealed through a statement dated February 28th, 2024 signed by the Bank’s Board Chairperson, Jimmy Lipunga, Director, Dorothy Ngwira, CEO Macfussy Kawawa, and Chief Finance Officer, Masauko Katsala, in which NBM indicates that the results are for the year ending 31 December 2023.
The statement specified that the profits which represent a 56.62 % increase compared to 34% for 2022, are a result of the growth in customer deposits which is at 969.41 billion Kwacha, representing a 20% increase from the previous year.
The results further show that the Bank’s Net interest and investment income grew by 33% with an 86% increase in other income mainly arising from growth in foreign exchange commissions by 99% from K12.8b to K25.5b while the loan book has increased by 31% and Investment in fixed Income securities grew by 10%.
“These results were largely driven by growth in customer deposits, which increased the loan book and fixed-income securities. Overall, net revenue grew by 50% as operating expenses increased by 25%, within the average inflation for the year,” reads part of the statement.
The bank further says it believes that the economy is expected to grow by 3.2% this year from 1.5% last year which will be supported by an increase in public investment and recovery in mining and quarrying, manufacturing, information and communication, financial and insurance activities, and education sectors.
In addition, the bank is also optimistic that the resumption of the IMF-supported ECF program will help to unlock foreign exchange inflows going into 2024 which will in turn support the importation of raw materials and promote economic activity.
