Shareholders of National Bank of Malawi (NBM) plc have expressed concern over the continued poor performance of the Bank’s Tanzanian subsidiary, Akiba Commercial Bank, which posted a loss in the 2024 financial year.
The concerns were raised earlier this week during the Bank’s Annual General Meeting (AGM) held at its Leadership Centre in Blantyre, where investors demanded clarity and a strong commitment to address Akiba’s recurring losses.
One of the shareholders, Joe Maere, welcomed the Bank’s overall strong results but urged management to act swiftly on the Tanzanian subsidiary. “We are happy with the Bank’s overall profit and the returns we have received as investors. But we also hope that Akiba’s challenges are being addressed with the urgency they deserve,” he said.
In response, NBM plc reassured investors that a strategic turnaround plan is underway, aimed at restoring Akiba’s financial stability and unlocking its long-term potential.
Board Chairperson Jimmy Lipunga acknowledged the concerns but explained that Akiba remains in its investment phase and is currently working through legacy challenges.
“The concern is very legit, and what we did as management is to get to the bottom of the issue. The business is viable. The losses are due to legacy loans issued in the past. We had not yet started rolling out new products due to other factors. That said, we believe the best days are ahead of us,” said Lipunga.
Despite Akiba’s underperformance, NBM plc posted an impressive after-tax profit of K101.71 billion for the year ending December 31, 2024. As a result, shareholders approved a final dividend of K28.6 billion, equivalent to K61.25 per share, bringing the total dividend payout for the year to K59 billion or K126.35 per share.
The AGM also marked the end of Lipunga’s three-year tenure as Board Chairperson. In his farewell remarks, he reflected on major milestones achieved during his leadership, including the Bank’s historic K100.1 billion profit. “I am proud of the work we have done and the growth we have achieved together,” he said.
He, however, said his only regret is not seeing more women ascend to executive management positions during his time, an area he said still needs deliberate action.
