By Thandie Chadzandiyani

LILONGWE-(MaraviPost)-Super-normal profits of National Bank, at a time progress has stalled in other sectors in the economy due to the pandemic have attracted the attention of Consumers Association of Malawi (CAMA) which they  have seen faults in Banks.

National Bank of Malawi (NBM) being one of the suspected banks has registered a group profit after-tax of MK22.45 billion from K17.16 billion in 2019, representing an increase of 31 percent in the year ended December 31 2020.

In a statement jointly signed by board chairperson George Partridge, chief executive officer Macfussy Kawawa, chief finance officer Masauko Katsala and board member Dorothy Ngwira, the bank said there was significant growth in non-interest income of 17 percent while net interest and investment income grew by nine percent.

Reads the statement in part: “Overall net revenue grew by 12 percent. The bank continued to control expenses within inflation. Operating expenses increased by seven percent while impairment losses reduced by 45 percent.

“Customer deposits increased by 27 percent year-on-year while the bank’s loan book grew by six percent largely on account of the Covid-19 pandemic.”

During the year, the bank also announced that it entered into negotiations to further acquire 24 percent stake in Akiba Commercial Bank (ACB) in Tanzania after completing the acquisition of a 51 percent controlling stake towards the end of the year 2020.

The bank’s board of directors have recommended to pay a final dividend of MK8 billion, up from MK4.3 billion paid last year, making a total dividend of K13 billion in respect of 2020 profits.

This represents MK27.84 per ordinary share, up from MK17.78 per share in 2019.

Reads the statement: “The bank paid an interim dividend of MK2.5 billion in September 2020 [2019: MK2.5 billion] and a second interim dividend amounting to MK2.5 billion on 31 March 2021 [2019: MK1.5 billion].

National Bank of Malawi (NBM) customers have been complaining over monthly deduction of MK1, 200 E-service fee which is too exorbitant compared to the said service.

E-service fee continues deduction continues to anger customers amid economic hardships due to Covid-19 spike.

“Why should the bank keep on deducting such amount of money for just Mo626 when all in any transaction when bank charge also for service. This bank is milking for a thin cow. These services could be lessened for the poor. No wonder have made such profits while us customers are relinquishing in dare poverty,” worried the bank customer in Chikwawa Nchalo.

Another customer in Mzuzu chipped in, “The bank deducts my account E-service fee despite not using the platform. This is stealing from us”.