National Bank of Malawi (NBM) on Friday declared a K1.5 billion dividend at K3.21 per share at its 41st Annual General Meeting (AGM) held at the financial institution’s learning and growth centre in Blantyre.
This comes after having already paid two interim dividends of K1.1 billion and K1.2 billion in August and December 2012 respectively making a total dividend of K3.8 billion.
Speaking during the AGM, NBM board chairperson Matthews Chikaonda said the remainder from the profit of K11 billion which the bank earned, has been re-invested in the business to expand and strengthen the operations and capacity of the bank.
Said Chikaonda: “We see signs of improved economic performance than in the previous year. However, the bank still expects continued macroeconomic instability during the adjustment process that the country is going through.
“We envisage that inflation and the high interest rates will peak during the first half of the year before the possible commencement of a downward trend in the later part of the year, perhaps with some measure of stability in the exchange rate.”
He said the developments are good for business generally, and commercial banking in particular despite the economy being affected by challenges of adjustment for the greater part of the year.
Chikaonda, therefore, expressed confidence in 2013 being a year of strong performance for the bank, adding that the bank stands well equipped with the necessary resources, and an ambitious five-year strategic plan to stay on a sustainable growth path.
“The strategy embraces the use of technology and entrenchment of appropriate attitudes in staff to address improvements in customer service, delivery platforms and widening the product range, while at the same time repositioning the spread and depth of its investments as well as strategic partnerships,” he said.
The shareholders also approved the directors’ fees and sitting allowances for the chairperson and non-executive directors effective from January 1 2013. The chairperson fees has been revised to K3 280 000 per annum payable quarterly in arrears and K2 400 000 per annum for non-executive directors also payable quarterly in arrears.
The chairperson’s sitting allowance has been revised to K100 000 per sitting whereas non-executive directors allowance is at K90 000 per sitting in allowances.