Saturday, December 14, 2024
الرئيسيةBusinessNBS Bank half-year profit after tax up 16%

NBS Bank half-year profit after tax up 16%

NBS Bank CEO Kwanele Ngwenya speaks during the AGM

Listed NBS Bank plc has recorded a half-year profit after tax jump from K4.4 billion to K5.1 billion representing a 16 % increase over the same period last year.

In a statement signed by NBS Bank plc board Chairman Vizenge Kumwenda, Director Matthews Mtumbuka, Chief Executive Officer (CEO) Kwanele Ngwenya, and Chief Finance Officer, Vera Zulu, the improvement, amidst the current environmental challenges, is due to flexibility in strategy implementation which has enabled the Bank to focus on high revenue generating activities.

“The Bank continues to deliver a positive performance, responding effectively to a difficult operating environment with renewed focus on building resilience and a solid platform for future growth. Having successfully completed the first 5-year strategy covering the period 2017 to 2021, the Bank is driving further growth through a new five-year strategy (2022-2026) to increase market share and enhance efficiency. The strategy, which is being delivered through a detailed road map with clear targets will deliver a superior digital offering and deeper customer engagement,” reads the statement.

NBS Bank plc AGM in progress

The growth in profit-after-tax follows the growth in the profit-before-tax by 19 percent to K7.7 billion for the six months compared to a similar period in 2021 of K6.5 billion.

Growth of loan book and effective management of investments in money market instruments also improved net interest income by 23 percent to K18 billion compared to 2021 when it was at 14.6 billion.

However, non-interest revenue registered a decrease of eight percent to K5.7 billion on a prior year performance of K6.1 billion due to some once-off income realized in the prior period.

“Operating expenses registered a 19% growth to K15.5 billion from prior year expense of K12.9 billion due to changes to compensation structure affected in the second half of 2021 and increased investments in our operating systems aimed at increasing revenue generating activities. Impairment charges improved significantly to K0.5 billion, down 61% from K1.3 billion in 2021 due to enhanced portfolio management,” reads the statement in part.

NBS Bank plc Board Member Dr Matthews Mtumbuka

According to the statement, NBS plc registered a 61 % growth of customer deposits to K281 billion from K174 billion while Loans and advances grew by 85 percent to close at K106 billion and money market investments growth was 12 % at K211 billion from K188 billion.

“The economic outlook for the second half 2022 is challenging. Just when the world was recovering from the Covid 19 crisis, Russia invaded Ukraine sending the global economy on yet another unpredictable course. As a result, various institutions projects that the economy is expected to grow by an estimated average of 2.37 % in 2022 from an initial Government projection of 4.1%.”

“Inflationary pressures are likely to rise throughout 2022 due to global turbulence caused by the war in Europe and the continuous resurgence of new variants of the Corona Virus. The Bank maintains robust capital and liquidity positions and is well-placed to pursue opportunities for growth in 2022,” reads part of the statement.

Meanwhile, the Bank’s Board of Directors has recommended payment of an interim dividend of K2.47 billion representing 85 tambala per share which represents a 41 percent growth.

NBS Bank Board member Dr Matthews Mtumbuka speaks to the press after the AGM
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