NBS Bank Profits Jump by 195% - 21/07/2009

NBS Bank Limited has reported a 195 percent jump in after-tax-profits for the year ended December 31, 2008 buoyed by improved business activities, the bank said in a statement. In its financial statement released yesterday, NBS Bank said its after tax profits rose from K264 million earned in 2007 to K779 million last year.

On the other hand, NBS Bank said its pre-tax-profits registered a 172 percent increase from K413 million in 2007 to K1.1 billion for the year-ended December 2008. NBS also said its deposit and lending products soared significantly by 51 percent and 61 percent, respectively, as the financial institution continued with its pursuit to increase its market share. "Both net interest income and non-interest income grew significantly by 53 percent and 48 percent over 2007, respectively. This resulted in total net income growing by 51 percent.

"Operating expenses increased at a slower pace than income and were 21 percent over 2007 resulting into cost income ratio improving from 81.5 percent in 2007 to 66.6 percent in 2008, moving towards the 60 percent norm," reads the statement co-signed by the bank's board chairman Felix Mlusu and director E. Nuka. The bank, which is listed on the Malawi Stock Exchange (MSB), has since proposed a final dividend of K147.9 million or 30 tambala per share. Once approved at its annual general meeting, this will represent a total dividend of K246.7 million or 50 tambala per share in 2008.

On future prospects, the bank said it will continue to grow its deposit and advances books in addition to launching more value-adding products to enhance its earnings capacity through several innovative distribution channels and products.NBS Bank shares were trading at K14 per share at the start of business at the local bourse yesterday.

Analysts were optimistic the appetising results would have a positive bearing on the bank's share price in the short to medium term. NBS Bank was previously trading as the New Building Society before it was incorporated as a limited liability company on March 14, 2003 and then registered under the Banking Act of 1989 on March 1,2004 as a fully-fledged commercial bank trading as NBS Bank Limited. It started commercial banking operations on July 1, 2004 and was listed on MSB on June 25, 2007 with the public holding a 40 percent stake.

Courtesy of The Nation Newspaper

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