Listed NBS Bank and its subsidiary, NBS Forex Bureau Limited reported
profit before tax of MK2, 851 million in 2013 -representing 92%
increase.

According to its financial results statements signed by Chairperson;
Felix Mlusu, the bank has performed well such that it will manage to
invest some funds in compliance to Reserve Bank’s Basel 2 regulations
-which means no dividend will be given to shareholders.

After tax, it made MK1, 913 million (2012: MK726 million) representing
163% growth -a performance it attributes to increases in total gross
income at MK21, 455 million (2012: MK14, 170 million) was made up of
MK17, 198 million (2012: MK10, 824 million) interest income and MK4,
257 million (2012: MK3, 345 million) non-interest income.

Interest income grew by 58% due to higher lending rates.
The company’s assets remained flat in the year at 60 billion kwacha
mainly as a result of reduced lending and use of cash balances to
settle loan obligations.

On the part of its subsidiary -NBS Forex Bureau Limited, the report
says it remained dormant and made a profit before tax of K13m arising
from revaluation of foreign denominated cash balances compared to a
loss before tax of MK75 million in 2012.

However, despite the 2013 improved performance, the Board of Directors
is said to have recommended that no dividends be declared and paid in
respect of the year ended 31st December 2013 as the Bank augments its
capital to remain resilient and to be fully compliant with the Basel
II regulations.

Looking forward, the bank sees the suspension of aid by major donors
to have potential of affecting the growth rate.

However, it has forecasts that the economy will somewhat grow due to
bumper yields that are expected from agricultural activities.

The member of NICO Holdings limited, NBS BANK’s share at Malawi Stock
Exchange is valued 16 kwacha per share.