Nico Holdings Limited has recorded an after-tax profit of K11.1 billion, representing 307 percent increase from what was registered in 2016.
The figures are of the 2017, and indicate strong performance of the company’s subsidiaries. The company is listed on Malawi Stock Exchang.
Nico Holdings Chief Executive Officer, Vizenge Kumwenda, said the growth in profitability was fuelled by a strong performance in general and life insurance, asset management and banking.
Kumwenda said the results were also boosted by a strong performance in the equity market.
Among others Kumwenda said the group’s gross revenue increased by 30 percent to K134.4 billion compared to K103.5 billion in 2016.
“Profit before tax increased by an impressive 1081 percent to K16.4 billion compared to restated profit of K1.3 billion in 2016,” Kumwenda said.
He said the prior year comparatives were restated due to 2016 adjustment relating to loan impairment losses in NBS Bank.
Kumwenda said NBS Bank, which raised K11.8 billion last year through a rights issue to solidify its operations has started showing good signs of recovery.
Recently, the bank entered into a technical service agreement with Rabobank of the Netherlands which has enabled NBS to access technical support from a bank of world repute.
“We are convinced that the initiatives we have undertaken at the bank will ensure that we offer a service that meets the needs and expectations of our clients. It is, therefore, pleasing that the bank is now registering profit every month from July 2017.
“Overall the bank is in a loss situation at the end of the year as a result of a loss incurred up to June 2017. However, the loss that the bank has achieved in the year is significantly lower than that in 2016,” Kumwenda said.