NBS Bank plc’s first half (H1) profit is expected to jump 126 percent to K73 billion—a feat the Malawi Stock Exchange (MSE) listed Nico Holdings subsidiary failed to reach in a full fiscal year of 2024.
This comes at a time the bank continues its outstanding performance at the stock market where both the share value and market capitalisation more than doubled from K347.59 to K708.52 per share and from K1 trillion to K3 trillion, respectively.
Analysts have since described NBS Bank’s prospects in H1 as exciting news which will likely continue to make its shares attractive to investors more so considering that NBS shares were relatively selling at lower price than some other listed banks.
In a trading statement signed by company secretary Marsha Ovi Machika, the company says it has reasonable certainty that its profit for the six months spanning January to June, 2025, will increase by 126.4 percent at maximum.
“The company accordingly, advises that the consolidated profit-after-tax for the period is expected to fall in the range of K70.6 billion and K73.8 billion representing an increase of between 116.6 percent and 126.4 percent compared to the consolidated profit-after-tax of K32.6 billion reported in the previous corresponding period,” reads the trading statement.
In an interview, equity investment analyst at Stockbrokers Malawi Limited Kondwani Makwakwa said the bank is benefiting from its capacity to effectively utilize its assets and that these prospects will continue to attract investors and positively impact its share price on MSE.
Makwakwa said: “NBS Bank may be benefiting from higher interest income, supported by the current high interest rate environment and effective management of its assets and liabilities.
“It was widely anticipated that the bank would perform well given the favourable operating environment. The strong profit outlook has likely attracted investors. If this profit trend continues, NBS is on track for a record-breaking full-year performance in 2025.”
In a separate interview on Wednesday, stock market investor and financial analyst Brian Kampanje said this is good news for investors as the doubled profit means more dividends to be declared as well as a further increase in the market share price translating to capital gains.
“NBS Bank plc has proved that the solid performance for 2024 was not a mere chance but that the Board and its management are taking deliberate strategies to add shareholders’ value.
“The shareholders have taken notice of this noble commitment and are responding by seeking more NBS Bank plc shares leading to an increase in the market share price,” Kampanje said.
In her remarks during the company’s investor engagement 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.
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.”
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.
