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| Business |
| NBM eyes continued profit growth |
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by
Taonga Sabola, 12 June 2006
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06:37:53
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National Bank of Malawi (NBM) says it is positioning itself for a continued profit growth this year.
NBM Board Chairman Matthews Chikaonda was speaking on Friday on the sidelines of the bank’s Annual General Meeting (AGM) held in Blantyre.
The bank is fresh from posting a four percent group pre-tax profit growth from K2.05 billion in 2004 to K2.13 billion in 2005.
He was, however, quick to say that this year’s prospects are being blurred by poor tobacco prices which has affected its international trade business. He also mentioned increased competition as another factor.
Tobacco sales are yet to impress with cumulative average price yet to reach the dollar mark. This has led to a series of disruptions the market.
“We are closely monitoring the proceedings on the tobacco market and hope that things may change for the better. Currently, we have intensified lending to Small and Medium Enterprises as a way forward,” said Chikaonda.
Chikaonda said his bank welcomes competition from other players in the industry saying that it why NBM pledged to underwrite First Merchant Bank (FMB) shares.
The AGM adopted a final dividend of K455 million or K1 per share and an interim dividend of K260 million equivalent of 57 tambala per share having already been paid to the existing shareholders on September 7, 2005, making a total dividend of K715 million or K1.57 per share.
There was, however, some drama when a resolution to approve sitting allowances for the chairman and non-executive directors was moved as shareholders also demanded that they be allocated a sitting allowance for attending the meeting.
“Mr. Chairman, on the sitting allowances I would like to find out why there is a sitting allowance for the chair and non-executive directors and at the same time nothing for shareholders when we are all attending the same meeting,” quizzed one shareholder.
Chikaonda said the rules governing NBM do not have a provision for sitting allowances for shareholders and that the proposal may be considered in future.
The motion was adopted thereafter which saw allowances of chairman going up from K21,000 to K25,500 per sitting while those of Directors moved from K18,000 to K21,500.
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