Shareholders for Malawi Stock Exchange listed National Bank of Malawi (NBM) should be a happy lot following revelations that the bank expects a more than 25 percent profit jump for the year ended December 31 2016.
In 2015 the country’s biggest bank by assets posted a pre-tax profit of K19.6 billion down from K20.7 billion in 2014.
But in a statement signed by Company Secretary, Zunzo Mitole, on Monday the bank says its profits surged last year.
A 25 percent profit jump means the bank is expected to post a profit of above K24.5 billion come March when listed companies publish their financial statements.
“National Bank of Malawi (NBM) accordingly advises shareholders that profit after-tax for the year ending 31 December 2016 is expected to be at least 25 percent higher than the previous year,” reads the statement in part.
Mitole could, however, not explain the reasons behind the profit jump in a year considered tough by many industry players.
All things being equal, a 25 percent profit jump should translate in improvements in the amount of dividends for shareholders.
In 2015, the bank paid out a total of K6.17 billion to shareholders inform of dividends.
National Bank of Malawi was established in 1971 as a result of a merger of Barclays Bank DCO (Dominion Colonial Overseas) and Standard Bank, which had its origins in Republic of South Africa, was widely established in Africa.
The merger of the two banks brought together complimentary operations to provide a country wide spread of assets and services.
National Bank of Malawi has about 850 employees. On August 21 2000, the bank was listed on the Malawi Stock Exchange with an over subscription of 3.4 times. It is currently one of the most liquid stock and a key and vibrant player on the exchange.
In 2016, NBM concluded the acquisition of Indebank to consolidate its position as Malawi’s biggest bank by assets.