National Bank of Malawi (NBM) plc has registered a 41 percent growth in profit-after-tax.
This is because the profit-after-tax has reached K101.71 for the year ended December 31, 2024, up from K71.96 billion in 2023.
This is according to the bank’s published summary of audited results.
The bank has since attributed the performance to growth in customer deposits, which it says fuelled the expansion of its loan book and fixed income securities, resulting in a 52 percent increase in net interest and similar income.
NBM’s net revenue rose by 46 percent, driven by growth in fees and commissions, and the consolidation of revenue from United General Insurance Company Limited (UGI), which became a subsidiary of the bank in 2024 following the increase in its stake from 47 to 57 percent.
The statement further indicates that customer deposits increased by 37 percent year-on-year compared to 20 percent in 2023, while the bank’s loan book grew by 15 percent, down from 31 percent the previous year.
However, operating expenses increased by 52 percent due to high inflation, the consolidation of UGI’s operating expenses and once-off staff rationalisation costs at the group’s subsidiary in Tanzania, Akiba Commercial Bank plc.
NBM Board Chairperson Jimmy Lipunga said the bank paid a first interim dividend of K13 billion in September 2024 and has proposed a second interim dividend of K17.4 billion to be paid in April 2025.
“The directors recommend a final dividend of K28.6 billion, making a total dividend of K59 billion in respect of 2024 profits, representing K126.35 per ordinary share. The final dividend will be payable after approval by the annual general meeting scheduled for June 2025,” Lipunga said.
But NBM Chief Executive Officer Harold Jiya said the outlook for 2025 and beyond remains mixed.
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