Centenary Bank on recovery path, profit jumps 201%
Centenary Bank Limited says it is on a recovery path with key indicators showing positive signs as the bank has reported a 201 percent after-tax profit growth in the half-year ended June 30 2023.
Published financial results show that the bank’s overall profit peaked at K970.4 million compared to a loss after-tax of K959 during the corresponding period the previous year.
“The group has achieved a remarkable turnaround from the adverse performance that was prevalent in the past two years,” reads the financial statement jointly signed by the bank’s chairperson Francis Pelekamoyo, chief executive officer Zandile Shaba, chief finance officer Chimwemwe Midiani and board director Morgan Tembo.
“The group is now well-capitalised following a change in shareholding and capital injection at the beginning of the year. We have attained business volume growth and reduced the cost of doing business despite increasing economic pressures.”
In the period under review, the bank reported a 59 percent growth in net interest income to K5.3 billion compared to the previous year’s K3.3 billion due to a reduction in the cost of funding.
On the other hand, total non-interest revenue grew by 59 percent to K5 billion from K2.9 billion earned in the previous-year period due to increased transactional volumes.
The bank also chalked a 64 percent growth in total income to K10.3 billion from K6.3 billion buoyed by the increase in transaction volumes and a reduction in the cost of funds.
But the bank, formerly MyBucks Banking Corporation Malawi, reported that impairment charges on loans and advances to customers rose by 111 percent to K431 million from K204 million due to economic challenges faced by the business and the impact of Cyclone Freddy on customers.
The continued rise in inflation pushed the bank’s operating costs rose by 14 percent to K8.4 billion from K7.4 billion in the previous year.
“We focused strongly on cost containment to ensure below-inflation cost growth,” reads the statement.
