NBM interest income triples to K10.3 billion
National Bank of Malawi (NBM) year-on-year net interest income has almost tripled to K10.3 billion (about $257m) during the year ended June 2013, as compared to the corresponding period in 2012.
NBM interim results for the period ended June 2013, published in The Nation of July 31, indicate that the bank’s net interest income stood at K3.8 billion for the year ended June 2012 and rose to K9.9 billion (about $25m) by the end of the year.
“In line with the improved capacity utilisation of the clientele, the bank registered satisfactory growth in almost all its business lines, notwithstanding the said liquidity challenges in the market.
Both deposit and loan books exceeded expectations. Year on year deposits grew by 23 percent while loans registered 17 percent growth despite repayment of a significant portion of parastatal Government guaranteed loans through issuance of Malawi Government promissory notes,” reads the statement.
NBM pre-tax profit also rose to K9.2 billion (about $23m) compared with K4.9 billion (about $12.2m) earned during a similar period in 2012 representing an increase of 18 percent on 2012 performance.
NBM said the board resolved to pay an interim dividend amounting to K2 billion (about $5m) representing K4.28 per share. NBM further advises that the dividend will be paid on September 13 2013 to members whose names appear on the register at the close of business on August 30.
Commenting on the operating environment, NBM said the first half of 2013 was fairly positive, signaling some modest economic recovery evidenced by increased capacity utilisation in most sectors.
NBM added that this was in spite of liquidity challenges experienced in the banking industry as a result of the Reserve Bank of Malawi (RBM) tight monetary policy stance through mopping up operations and the maintenance of high interest rates.
