Leading home grown commersial bankers, NBS, has announced an increase of its profit-after-tax to K72.99 billion, marking a 148% jump for the year ending 2024, from K29.38 billion reported in a similar period in 2023.
According to the financial statement the ‘Caring Bank’ has released, signed by Board Chairperson Vizenge Kumwenda, Board Director Harrison Kalua, former Chief Executive Officer (CEO) Kwanele Ngwenya, and Chief Financial Officer (CFO) Ernest Tembo, the main drivers of the remarkable increase in profits include net interest income which amounted to K160 billion, representing a 139% increase from K67 billion reported in 2023.
“The impressive performance followed significant growth of money market investments and the loan book which increased by K366 billion and K86 billion, respectively. Non-interest income went up from K34.95 billion in 2023 to K45.19 billion in 2024, driven by higher trade finance volumes, and increased adoption of digital platforms which drove transaction volumes.
“The Group also registered growth in foreign exchange trading income in both the Bank and its subsidiary, NBS Forex Bureau Limited.”
“Total operating expenses amounted to K75.84 billion, representing a 57% increase driven by an increase in operating expenses new business activities, project expenses, inflation, and a slight depreciation of the Kwacha. However, the income growth was significantly higher than the increase in operating expenses resulting in a decrease in the cost-to-income ratio from 47% to 37%,” reads the statement in part.
The Bank also said credit impairments amounted to K4.72 billion, up 3% from the K4.56 billion reported in 2023 while non-performing loans were within the Bank’s risk appetite.
The statement further said the Group’s total assets closed at K1.19 trillion, representing an 81% increase from K657.72 billion reported as of 31 December 2023 while customer deposits went up by K189 billion year-on-year.
“Funding from financial institutions and long-term loans were other sources of notable expansion of the Bank’s balance sheet. Current and savings account balances accounted for 56% of total customer deposits as of 31 December 2024, up from 52% as of 31 December 2023. The improved deposit mix will contribute to a better net interest margin in 2025.”
“The Bank’s loan book expanded to K248 billion as of 31 December 2024, compared to K162 billion in the prior year. The growth of the loan book followed sustained demand for loans in the retail segment, and foreign currency loans to fund long-term projects in strategic sectors,” reads further the statement.
Meanwhile, the bank has announced a total dividend of K31.73 billion on 2024 profits, representing K10.90 per share.
In 2023, the bank paid K13.21 billion representing K4.54 per share.
“The Group also registered growth in foreign exchange trading income.”
NBS
