NBS Bank posts 26% profit jump - 07/09/2009

NBS Bank Limited, the Malawi Stock Exchange-listed subsidiary of NICO Holdings Limited, has reported a 26 percent after-tax profit rise to K420 million from K333 million in the half year ended June 30, 2009 largely attributed to a 48 percent increase in net interest income.

This has come about because of a 54 percent growth in the loan portfolio funded by a 48 percent growth in deposits, the bank said. In a statement, NBS Bank is upbeat that the trend is further expected to improve in the second half as the bank will be rolling out some new products and increasing points of representation. According to the summary of unaudited interim results, NBS Bank—whose assets have grown to K22.8 billion from K20 billion during the same period last year—said the K420 million after-tax profit translates to an annualised after-tax return on equity of 40 percent.

"Considering the ongoing capital expenditure projects which will be completed before the end of the year, the directors have decided that no interim dividend should be paid," reads the statement co-signed by the bank's board chairperson Felix Mlusu and director E. Nuka

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