New Chief Executive Officer for Malawi Stock Exchange-listed National Bank of Malawi (NBM) Harold Jiya has outlined plans to grow the bank’s annual profitability to $100 million within the next four years.
He unveiled the aspiration, which forms part of the bank’s strategic plan, during his inaugural media engagement in Blantyre since he took over the mantle from McFussy Kawawa who retired last month.
Among other things, according to Jiya, the bank eyes expanding its footprint to the regional market.
Already, NBM has a majority stake in Tanzania-based Akbar Bank, which, Jiya said, is on a turn-around trajectory from years of loss-making.
He said NBM has also moved into neighbouring Mozambique and Zambia where possible acquisitions and due diligence have already been done on some banks.
Juya added that the bank projects to secure 12 percent of its targeted profitability for its existing and potential subsidiaries.
“We are also interested in going to the region and expanding our reach to make sure that we are represented in four countries in the region.
“We conducted a regional study to find out where it would get more value and we looked at where our customers do business and we noted that most of our customers do business with Tanzania, Mozambique and Zambia, so we are following where our customers go,” he said.
In his presentation, Jiya said the bank aspires to grow its customer base to two million by 2027
On the other hand, he lamented challenges facing the economy, which he said have had a bearing on the banking sector’s performance.
Jiya, however, expressed optimism for continued business growth, saying the bank has systematic strategies to navigate the turbulence in place.
In an interview yesterday, Minority Shareholders Association of Listed Companies General Secretary, Frank Harawa, rated the aspirations as ideal for growth and competition.
“I think it is a good thing for a listed company to have ambitions; I don’t think it would be difficult for the bank to reach a $100 million profit mark.
“With the ambition of going regional, it would be an ideal growth path and even in the best interest of the country. It is a good and welcome move but we have reminded them that Malawi remains a more viable space with the coming in of mining trends,” Harawa said.
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