NBS Bank plc has weathered the Covid-19 storm by reporting a 55 percent increase in half-year profit to K4.4 billion from K2.8 billion during the same period last year.NBS Bank plc has weathered the Covid-19 storm by reporting a 55 percent increase in half-year profit to K4.4 billion from K2.8 billion during the same period last year.
In a joint statement accompanying a summary of unaudited consolidated results for the six months ending June 30 2021, the Malawi Stock Exchange-listed bank said it navigated challenges presented by Covid-19 to deliver a robust financial performance through continuous focus and implementation of its five-year strategy aimed at accelerating digital transformation, building a strong balance sheet and enhancing efficiencies.
The results show that net interest income grew by 10 percent compared to a similar period last year, largely due to the growth of the loan book and effective management of investments in money market instruments.
“On the other hand, non-interest revenue registered a growth of 35 percent on prior year performance on the back of some once-off income and cash flows,” reads the statement jointly signed by NBS Bank plc chief executive officer Kwanele Ngwenya, board chairperson Vizenge Kumwenda, director Matthews Mtumbuka, and chief finance officer Vera Zulu.
The bank said it has made good progress on the implementation of its five-year strategy, which places digital offering at the centre of the vision for superior customer experience which has increased transaction volumes and income growth.
“Operating expenses registered three percent growth on prior year due to planned investments in our operating systems and increases in revenue generating transactional expenses,” reads the statement.
The financial results show that the bank registered a 26 percent growth in customer deposits during the half-year period.
The bank registered a 13 percent growth of customer deposits, 61 percent in money market investments, but loans and advances decreased by three percent due to planned repayments of seasonal facilities.
NBS Bank said it will continue to monitor developments and changes in the monetary policy to mitigates risk on performance and continues to be resilient in its performance and upbeat that its turnaround journey continues in full force despite the current challenges in the operating environment.
The board of directors of the bank have recommended an interim dividend of K1.75 billion, representing 60 tambala per share. This is a rise from K1.3 billion or 45 tambala per share during the same period last year.