Banks buoyant in 2021 

Banks buoyant in 2021 

Malawi Stock Exchange(MSE)-listed stocks in the banking sector have posted profits in the year-ended 2021, a situation which shows the recovery process from the Covid-19 pandemic is on track, analysts have said. 

Published statements from three of the five MSE-listed banks National Bank of Malawi plc (NBM), NBS Bank plc and Standard Bank plc have posted profits higher than the previous year while profits for FDH Bank have slightly lowered during the period under review.

According to financial statements Business News has seen, Standard Bank plc profits went up by four percent to K24.8 billion in the year-ended December 31 2021, from K23.7 billion in 2020.

Banks have posted profits in 2021

Similarly, NBM bank’s profit-after-tax also grew by 52 percent to K34.21 billion for the year-ended December 31 2021, on account of customer deposits growth which increased transaction volumes and pushed non-interest income up by 49 percent.

Profitability of NBS Bank plc also grew by nine percent in profit-after-tax to K7.69 billion in the year ended December 31 2021, up from K7.05 billion, on account of what the bank described as its institutional strength.

But on the other hand , FDH Bank plc has reported a 16.65 percent drop in after-tax-profit to K11.65 billion for the year ended December 31 2021,  a decline from the K13.98 billion which the bank achieved over a similar period in 2020.

In her explanation of the bank’s profitability, Bankers Association of Malawi (BAM) chief executive officer Lyness Nkungula observed that banks have better business risk management that has helped them to sail through even in the turbulent times.

“The diversification of products and technology has helped to intensify the resilience to the pandemic,” she said.

Market analysts have also indicated that banks’ resilient performance is not surprising, arguing that they have diversified income sources.

Economics statistician Alick Nyasulu said banks have thrived on investment in public debt, but also noted that they have diverse sources of income beyond traditional loans and their electronic services have had the general public hooked.

Published results from other sectors also show fairly better results compared to 2020.

TNM plc, for instance, has reported a 25 percent increase in profit-after-tax to K9.69 billion in the year-ended December 31 2021, which is a jump from K7.73 billion achieved during the previous year.

Sunbird Tourism plc, on the other hand, has posted  an after-tax -profit of K749.4 million, a year after posting a loss, thanks to the easing of travel restrictions and economic recovery.

In its published financial statements, Sunbird Tourism plc said its profit-after-tax has jumped from a loss of K1.2 billion during the same period in 2020.

The post Banks buoyant in 2021  appeared first on The Nation Online.

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