Category: Business

NBS Bank plc 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.

Select Financial services, a micro-payroll lender for civil servants, has urged Malawians to seek financial solutions from traditional financial companies to sustain themselves during the turbulent economic times.

The company’s Chief Executive Officer (CEO), Akuzike Kafwamba said in an interview that during the harsh economic times, marked by a high cost of living, access to credit has become a vital lifeline for many individuals and families, but difficult to access from the traditional financial institutions.

“In such a scenario, access to credit can provide a much-needed cushion, enabling individuals to meet their financial obligations, invest in their businesses, or simply cover unexpected expenses.”

“However, for low-income earners, accessing credit from traditional financial institutions can be a daunting task. Many are often relegated to informal financial markets, such as community or social groupings popularly known as Village Banks where interest rates are exorbitant, and repayment terms are stringent. This is where microfinance institutions like Select Financial Services come in,” said Kafwamba.

He further said Select Financial Services has been at the forefront of providing financial solutions to the un-banked or entry level retail credit market low-income earners.

“The current economic environment has seen prices of basic commodities skyrocket, leaving many low-income earners struggling to make ends meet.”

“By providing tailored financial solutions, we empower low-income earners to take control of their financial lives. Our micro-payroll lending model, for instance, allows borrowers to access credit at competitive interest rates, with longer repayment terms that are aligned with their income levels and cycles especially during difficult economic times like these,” he explained.

Kafwamba indicated that they believe that access to credit is a fundamental right, not a privilege reserved for the wealthy.

“Our commitment to financial inclusion has seen us expand our outreach to underserved communities, providing financial education, and promoting a culture of savings and investment. As we navigate these challenging economic times, it is imperative that we prioritize access to credit for low-income earners. By doing so, we can help mitigate the effects of the high cost of living, promote economic empowerment, and build a more resilient and inclusive financial system.”

“At Select Financial Services, we will continue to innovate and adapt our financial solutions to meet the evolving needs of our clients. We remain committed to our mission of providing access to credit, promoting financial inclusion, and empowering low-income earners to achieve their financial goals,” said Kafwamba.

A Blantyre based civil servant Amon Phiri touted Select Financial Services for providing a lifeline during this tough moment when prices of goods have skyrocketed thereby failing to manage his family from his salary.

“Life is generally tough at the moment but the loan I got from Select Financial Services managed to ease the situation. The good thing is that I am now paying it back without any problems, they really came up for me when I needed help,” he said.

The National Bank of Malawi (NBM) plc on Friday hosted members of the Malawi National Association of the Deaf (MANAD), Blantyre Branch, for an exclusive tour of its operations to promote financial inclusion.

During the tour, at NBM plc Head Office and later at its Leadership Centre in Blantyre, the Bank introduced MANAD representatives to various departments within the Bank, offering insights into daily operations and service delivery.

Speaking during the engagement, NBM plc’s Product Development and Strategy Manager, Weruzani Kunkwenzu, emphasized the significance of this initiative saying it helps the Bank in understanding the needs of people with hearing impairment.

“The aim was to promote financial inclusion, understand the needs of the people with hearing impairment, and enhance accessibility to banking services. This engagement also aligns with the bank’s corporate social responsibility efforts, fostering stronger relationships with diverse customer groups and promoting financial literacy.”

“Such initiatives help expand our customer base by reaching all populations, strengthening brand loyalty through inclusivity, ensuring compliance with financial inclusion policies, and encouraging innovation in accessible banking solutions,” said Kunkwenzu.

In his remarks, MANAD’s Blantyre Branch Vice Chairperson, Isaiah Mkwaila, expressed gratitude to NBM plc for the opportunity saying the tour has helped them communicate with the Bank about their daily challenges.

“We often face challenges in understanding how various institutions operate due to communication barriers. This tour has provided us a platform to engage directly with the Bank, share our experiences, and suggest ways to improve accessibility.”

“Through this, we have been able to give the Bank our thoughts and share some of the challenges we face when accessing banking services. Having this opportunity has allowed us to communicate our ideas on how best we can move forward together,” said Mkwaila.

The MANAD guests appreciated the Digital Financial Services department, Information Technology department, and Customer Care department.

National Bank of Malawi (NBM) plc has announced an increase of its profit-after-tax to K101.71 billion, marking a 41% increase for the year ending 2024, from the K71.96 billion reported in 2023.

In the just-released financial statement signed by Chief Executive Officer (CEO) Harold Jiya, Board Chairperson Jimmy Lipunga, Director Mcleod Nkhoma, and Chief Financial Officer (CFO) Daniel Jere, NBM plc’s results were largely driven by growth in customer deposits, which fueled an increase in the loan book and fixed-income securities.

“Net revenue rose by 46% due to growth in fees and commissions, as well as the consolidation of revenue from insurance operations of United General Insurance Company Limited (UGI), which became a subsidiary in 2024 following the Group’s increase in its stake from 47% to 57%. UGI thus transitioned from being an associate to a subsidiary company.”

“Operating expenses increased by 52% largely due to high inflation in Malawi, consolidation of UGI’s operating expenses, and one-time staff rationalization costs at the Group’s subsidiary in Tanzania, Akiba Commercial Bank plc,” reads the statement in part.

However, the Bank indicates that growth in 2024 was adversely impacted by other factors like foreign currency scarcity and high interest rates.

“The Group’s performance was negatively affected by a 75% increase in net impairment losses in Malawi and Tanzania.”

“All subsidiaries of the Bank reported profits that positively contributed to the Group’s performance, except for Akiba in Tanzania. The Tanzanian operations incurred a loss of K3.94 billion, largely due to weak revenue performance, staff rationalization costs, and an increase in expected credit loss provisions,” reads part of the statement.

According to the Bank, headline inflation decreased from 33.4% in the first quarter to 29.2% in the fourth quarter.

“Interest rates were relatively stable, although still high, with the Reserve Bank of Malawi (RBM) maintaining a policy rate of 26% per annum from February 2024 to December 31, 2024. The Malawi Kwacha devalued by 3% against the US Dollar in March 2024, causing the official exchange rate per US Dollar to rise from K1,700 to K1,751,” reads the statement in part.

Despite the challenges, NBM plc projects the economy to grow by 3.2% in 2025, up from an estimated 1.8% in 2024, primarily due to continued normal to above-normal rainfall across the country.

Meanwhile, the Bank has announced a total dividend of K59.0 billion in respect of 2024 profits representing K126.35 per ordinary share.

In 2023, the Bank paid K102.80 per share to its shareholders.

Following the launch of the campaign dubbed ‘Zikumveka Kumbuyoko’ last year, NICO Group has been taking a front seat in equipping Malawians with relevant and essential knowledge for making informed decisions on money matters.

The campaign will simplify personal savings and investment, insurance, and retirement planning, among many other money decisions. It is also aimed at contributing to the national financial inclusion agenda.

NICO Group says in a statement that the campaign is partly inspired by the widespread knowledge gap in financial matters.

“Adding to the financial series that have been shared, there will be a number of critical touch points that will be rolled out in the rest of the year.”

“This year we will continue running our financial literacy series on local TV, but also working with schools, and various institutions that have a common goal of empowering Malawians in the financial space, but most especially we will increase our social media presence through influencers to drive the message home regarding matters to do with money,” says Lorraine Mlenga Group Head of Marketing and Customer Experience for NICO Holdings.

The campaign will be delivered through a series of engaging educational sessions designed to reach out to people from all walks of life, including entrepreneurs, salaried workers, and informal sector traders.

Through relatable storytelling, practical examples, and interactive discussions, participants will gain a deeper understanding of financial planning and security.

At the heart of the campaign is the ‘Child Teacher’, a key character who would break down financial concepts into simple, easy-to-understand lessons.

Each session will focus on different aspects of financial management, starting with pensions, helping people prepare for retirement by understanding the importance of long-term savings.

It will then move on to general insurance, covering protection for assets and businesses, before tackling life insurance, which ensures financial security for families.

The campaign will also educate the public on investments, showing how to grow wealth over time.

“We all know that financial literacy is generally low in Malawi. As such, the child teacher (Nico) embarked on this project to educate the masses on financial matters, these matters will span from Pension (Nkhani Za Pensoni eeeeh), General Insurance (Simagalimoto Okha), Life Insurance, (and) Investment. The reason for this is to make sure we all make well-informed decisions on financial matters to make sure your tomorrow is a happy one,” reads the statement.

By using a mix of real-life scenarios, humor, and expert insights, ‘Zikumveka Kumbuyoko’ aims to change the way Malawians think about money.

The campaign will be accessible across various media platforms, including radio, television, and digital channels, ensuring that as many people as possible can benefit from the knowledge being shared.

“The quality of decisions people make on money is determined by the money knowledge that one has. Our goal is to help people from all walks of life to make good, sustainable and informed decisions about their financial future – We want everyone to have a better financial future,” explains Mlenga.

As the ‘Zikumveka Kumbuyoko’ campaign unfolds; Malawians are encouraged to participate actively, ask questions, and apply the lessons to their daily lives and to take control of their financial destinies.

A local construction firm, Immas Building Contractors (IBC) Limited has invested K1.5 billion in new plant and earth movement machinery to fill the gap in the construction industry.

IBC General Manager Immanuel Ndilowe said in an interview yesterday that they noticed a gap in terms of heavy plant equipment hence the investment.

“We have acquired brand new machinery like Abnormal load trailers, back-hoe loaders with jack hammers, tippers, crane trucks, bulldozers, mobile lifts, concrete finishing equipment and many others because we saw that most local building contractors were having problems in accessing this equipment,” said Ndilowe.

He said they opted to acquire brand new machinery from China because they wanted to improve on delivery and efficiency at a cost-effective price.

“Our trucks can also get load across the borders with no waiting times so that we improve on the efficiency. We did not want to get second hand machinery because of the experience that other people face including us when they try to hire heavy equipment,” added Ndilowe.

Ndilowe said most people in the construction industry face delays in their projects because of the long waiting list to where they want to hire the machinery.

“But we are a local company with expertise and capacity, that is why we decided to go into this venture,” said Ndilowe.

One of the contractors, Madalitso Makwecha of New Vision Construction Limited hailed IBC for the new machinery saying it will help many contractors in the country.

“We have been having challenges when it comes to hiring heavy equipment as it is scarce because just a few companies have these and with the coming in of IBC equipment, it will help us improve on efficiency and quality of our work,” said Makwecha.

The Malawi Communications Regulatory Authority (MACRA) says there are a number of factors deepening the Malawi digital creativity economy.

Suleman said this over the weekend during an interactive session with the creative industry, as part of MACRA’s ongoing efforts to raise awareness on digital rights.

He stressed a number of points which he believes can transform the country’s digital creative industry.

He said “Malawi’s creative industry must move beyond dependence on big Tech monetization and take ownership of digital distribution, platforms and innovation”

“Creators can leverage e-commerce, live experiences, digital marketplaces, Blockchain and local partnerships to drive profitablity”

“Investing in local streaming platforms, payment systems, content hubs, and Telco partnerships will strengthen Malawi’s digital creative ecosystem”

“Government, private sector, and development partners must prioritize funding, training, and regulatory support to enable a thriving creative sector”

“The creative industry can drive tourism, digital exports innovation and cultural influence”

One of the content creators, Kelvin Before Gumbi described the meeting as an open eye to the content creators and has vowed to improve through the message shared.

At least 40 Malawians have been employed at the newly opened Max Sana Branch, situated in Area 43, Lilongwe.

This has been revealed by the Max Sana Branch Manager, Delings Msukwa.

Apart from creating job opportunities, Msukwa said the opening of the site will help in bringing service and products closer to people around Area 43.

“Iam delighted with the opening of this Super market which, has already benefited 40 Malawians, through job opportunities”

“We chose this area with an idea of helping residents of Areas 30, 43, 18 as well as 25 to access our products easily” said Nsukwa.

Additionally, Nsukwa said the shop will also help customers to save money as they will no longer have to travel long distances to get retail goods at wholesale prices.

“In this area, there was no big supermarket, and by doing this, we have brought goods closer to people. We will continue to innovate and creative just for our customers satisfaction,”

“We are growing and growing very fast. In this new shop, we have all the departments that will suit our customers. We have sections like dairy, confectionery, butchery, fresh produce, regular produce, and most household appliances,” he added.

Charles Nyirenda, an Area 18 resident, commended Max Sana for bringing its services close to the community.

The new shop is situated opposite Chibuku Products Limited, and sells both local and international products.