Amidst the ongoing economic turmoil and a downcast financial environment in the country, National Bank of Malawi (NBM) Development Bank Ltd has recorded a staggering profit-after-tax of K893 million in 2023 on account of a growing loan book and investment fund.
This means, therefore, the profit-after tax is a sharp rise from the K304 million, which was posted the previous year.
According to a summary of audited financial statement for the year ended December 2023 signed by board chairperson Macfussy Kawawa and director Kasim Aroni, seen by Gazette Online, the National Bank of Malawi (NBM) plc subsidiary said this is despite a harsh operating environment.
“These results were largely driven by the growth of the loan book and funds under investments which saw total interest income growing by 124 percent. The bank’s loan book grew by 137 percent in 2023.
“The operating environment was largely subdued as a result of inflationary pressures, the devaluation of the kwacha and acute foreign currency shortages which negatively impacted the implementation of projects in various sectors which the bank operates in,” the statement reads in part.
Looking ahead, the NBM says the uptake of credit facilitaties by small and medium enterprises is expected to increase.
Further reads the statement: “The bank is, therefore, expected to remain resilient and continue in its growth trajectory in 2024.”
NBM Development Bank Ltd is a wholly owned subsidiary of National Bank of Malawi Plc and a Development Finance Institution Licensed by the Reserve Bank of Malawi.
The NBM Development Bank, whose core business is to provide debt and equity capital to SMEs within key target sectors, was established as a long term financing arm of NBM Plc. for small to medium sized enterprises (SMEs).
The Development Bank, which is headed by Bernard Masi, also assists these enterprises with business support services in order to assure viability of the enterprises.
“The bank is, therefore, expected to remain resilient and continue in its growth trajectory in 2024.”
NBM Development Bank financial statement
