NBS Bank plc has reported a 145 percent increase in profit after-tax in 2024 and outlined its forward-looking growth strategy to propel it going forward.
During an investors’ conference in Blantyre on Friday, the Malawi Stock Exchange-listed NBS Bank announced that its profit surged from K29 billion in 2023 to K72 billion in 2024.
In her remarks during the event, NBS Bank plc chief executive officer Temwani Simwaka said the bank has not only recorded growth in profitability, but also maintained balanced growth across customer acquisition and operational performance.
Despite operating in a challenging economic environment characterised by high inflation and interest rates as well as rising cost of doing business, she said NBS Bank remained optimistic.
Said Simwaka: “We see significant opportunities in agriculture and agro-processing. We have invested heavily in our core banking system and digital platforms to ensure we are well-positioned to support economic growth and make transactions easier and more affordable for our customers.”
She highlighted the success of the bank’s digital lending services, enabling customers to access personal loans in less than five minutes without physically visiting a branch.
She added that the digital transformation has also allowed the bank to extend its services to underserved areas across Malawi.
While acknowledging the risks associated with lending to the government, Simwaka stressed the importance of calculated risk-taking.
“We have raised our capital thresholds and implemented tighter credit processes to manage risk effectively,” she said.
On foreign exchange shortages, Simwaka clarified that forex supply is largely dependent on exporters, adding that the bank is investing in productive sectors and exporters to boost forex generation.
“It’s about balancing the needs of importers while growing the supply side,” she said.
Simwaka also outlined a strategic vision focused on enhancing customer experience, investing in talent, improving digital platforms for mass-market clients and deepening partnerships for growth and risk-sharing.
“We are embedding environmental, social and governance practices into our operations to ensure sustainable development,” she said.
Stock market investor Benedicto Bena Nkhoma expressed confidence in NBS Bank’s direction, saying: “The performance has been exceptional. I believe this bank is on a strong growth path.”
He also echoed concerns about the country’s rising public debt, which has hit K16 trillion and limited access to forex, but said he was encouraged by the bank’s strategy to diversify revenues and invest in sectors that could generate foreign exchange.
Nkhoma, a former investment banker, urged financial institutions to increase investment in youths and small-to-medium enterprises.
“With Malawi’s median age at just 17.8 years, banks must deliberately allocate resources to empower the youth, many of whom are entering the market without employment,” he said.
Nkhoma also called for continued investment in digital platforms to meet the evolving needs of customers.
“Stock market investment is a marathon, not a sprint. We may be seeing a short-term dip, but performance will bounce back,” he said.
NBS Bank share price traded at K355.21 as of close of business last Friday, according to stock daily news.
