NBS Bank has reported a profit after tax of K29.38 billion in the 12-month period ended December 31 2023, published summary and separate financial statements show.
This represents an increase of 55 percent, year-on-year, when compared to the K18.91 billion profit reported at end December 2022.
The bank has since attributed the performance to the growth in money market investments and its loan book, which increased by K93.53 billion and K21.11 billion to K367.64 billion and K162.31 billion, respectively.
According to the statement, net interest income amounted to K67.69 billion translating to 31.6 percent above the K51.42 billion net interest income reported in 2022.
Non-interest income grew from K14.15 billion to K34.82 billion on the back of trade finance, increased usage of digital systems and a higher volume of forex trading.
“The bank saw a notable uptake in retail customer numbers for both accounts and wallets which would form the basis for higher transaction volumes and fees going forward,” the statement reads.
NBS Chief Executive Officer Kwanele Ngwenya said the local economic landscape is expected to improve in 2024 on the back of the resumed direct budget support.
However, he says downside risks may arise from weak agricultural output because of the adverse impact of El Nino weather and a tight monetary policy stance to tame inflation rate.
“The exchange rate regime is expected to be market-determined which increases the likelihood of mild currency depreciations in the year to correct supply and demand imbalances.
“The bank expects inflation to remain elevated throughout 2024 owing to currency depreciation and relatively low agricultural output,” Ngwenya said.
NBS Bank has since approved the payment of a third interim dividend of K4.37 billion, representing a dividend of K1.50 per share.
It has recommended the payment of a final dividend for the year ended December 2023 of K1.88 billion, representing K0.64 per share.
