NBS Bank annual profit up 58% to K7bn
NBS Bank plc has reported a 58 percent increase in profit after-tax to K7 billion in the year ended December 31 2020, financial results show.
This is a jump from K4.46 billion achieved during the previous year.
The bank said in a statement accompanying the financial results that due to the impact of Covid-19, it focused on continuity of service excellence and maximising efficiencies, adding that acceleration of digital transformation enhanced customer experience.
Reads in part the financial statement jointly signed by the bank’s board chairperson Vizenge Kumwenda, chief executive officer Kwanele Ngwenya, chief finance officer Vera Zulu and director Matthews Mtumbuka: “Our balance sheet remains robust with our capital and liquidity positions improving in 2020, net loans and money market investments rose by 53 percent and 27 percent to K59 billion and K105 billion, respectively while customer deposits increased by 27 percent year-on-year to K154 billion.”
The statement further said growth demonstrates that the NBS Bank plc remained resilient during the year.
The bank’s net interest income grew by 34 percent because of the growth of the loan book and increased investment in money market investments.
Non-interest income, which is made up of transaction fees and forex trading income, increased by 17 percent from the previous year.
“The uptake of the bank’s products on digital platforms improved as investments were made to increase network availability and reliability.
“The bank also upgraded its Internet banking platform and Mobile App offering to ensure improved service offering,” reads the statement.
The figures show that net impairment charges on loans and advances were K1.9 billion in the year under review from K800 million in 2019, reflecting growth in the loan book.
Operating expenditure was up 11 percent compared to the previous year largely due to infrastructure upgrade supporting the core banking system to handle continued investment in digital channels, Covid-19 preventative safety measures and other investments in staff capacity building.”
NBS Bank plc said Covid-19 affected the local and global landscape in unprecedented ways.
The bank continues to invest in its transformation and some initiatives include the introduction of biometrics as part of the identity verification process.
The bank has recommended payment of a final dividend for the year ended December 31 2020 of K2.04 billion, representing 70 tambala per share, up from 35 tambala per share.
