NBS Bank half yearly profits rise to 50% - 13/07/2010

NBS Bank Limited, the Malawi Stock Exchange (MSE)-listed subsidiary of NICO Holdings Limited, says its half-yearly after-tax profit for the year ending June 30 2010 is expected to be over 50 percent higher than what was achieved during the same period last year. NBS Bank is 60 percent owned by Nico Holdings Limited, a financial services group which has indicated that its profit-after tax for the half year ending June 30 2010 is projected to be 80 percent above results for the same period last year.

"Based on the profitability estimate on the unaudited figures, the bank's profit-after-tax for the half year ending 30th June 2010 is forecast to be over 50 percent higher than the profit achieved for the corresponding period ended 30th June 2009," said a trading statement published yesterday and signed by company secretary Martin Ndenya. The unaudited financial results are expected to be released in August this year, according to the trading statement. In the half year ended June 30 2009, NBS Bank posted a 26 percent rise in after-tax profit to K420 million from K333 million the previous year largely attributed to a 48 percent increase in net interest income.

The bank said growth in profit came about because of 54 percent growth in loan portfolio funded by a 48 percent in deposits growth. In the year ended December 31 2009, NBS Bank recorded an after-tax profit of K810 million and its assets grew by 47 percent through a number of initiatives that includes the widening of the distribution network through agencies and off-premises ATMs.

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