By Linda Kwanjana The National Bank of Malawi (NBM) plc has re-assured investors of a strategic turn-over of the performance of its Tanzanian subsidiary, Akiba Commercial Bank, which posted a loss in the 2024 financial year.
The re-assurance came during the Bank’s Annual General Meeting (AGM) held on Monday at its Leadership Centre in Blantyre after shareholders raised concerns over the continued poor performance of the Bank.
Responding to the concerns, NBM plc Board Chairperson, Jimmy Lipunga acknowledged the disappointment surrounding Akiba’s performance but emphasized that the Bank remains in its investment phase.
“The concern is very legit, and what we did as management is to get to the bottom of the issue. The business is viable. The losses are due to legacy loans issued in the past. We had not yet started rolling out new products due to other factors. That said, we believe the best days are ahead of us,” said Lipunga.
Despite the subsidiary’s underperformance, NBM plc posted a strong financial showing, registering an after-tax profit of K101.71 billion for the year ending December 31, 2024.
As a result, shareholders approved a final dividend of K28.6 billion which is K61.25 per share, bringing the total dividend payout for 2024 to K59 billion which translates into K126.35 per share.
Investor Joe Maere, welcomed the dividend declaration but acknowledged the concerns raised over Akiba’s financial standing.
“We are happy with the Bank’s overall profit and the returns we have received as investors. But we also hope that Akiba’s challenges are being addressed with the urgency they deserve,” he said.
The AGM also marked the retirement of Lipunga after three years of service as Board Chairperson.
In his farewell remarks, Lipunga reflected on key milestones achieved during his tenure, including the historic K100.1 billion profit recorded under his leadership.
“I am proud of the work we have done and the growth we have achieved together. My only regret is not seeing more women ascend to executive management positions during my time. This is an area that still needs deliberate action,” said Lipunga.
