RBM slashed the policy twice by a total of 250 basis points from 16% to 13.5%, as the latter review made NBS bank’s interest income drop. The bank has said that it maintains a positive outlook for 2019.

Speaking to reporters on the sidelines of the bank’s 15th annual general meeting (AGM) in Blantyre on Wednesday, NBS Bank Board Chairperson, Vizenge Kumwenda, said the bank is confident that, with the low interest rate regime, the demand for loans will go up and the bank will be able to lend to more customers than before. He also revealed that the bank is  working on measures to increase non-interest revenue.

Meanwhile, the bank is celebrating an after-tax profit of K1.699 billion from a loss of K1.092 billion in 2017. “The profit is a result of the turnaround strategy the bank has been implementing since 2017. Net interest income grew by 35% as a result of the increased investments in short-term placements with financial institutions. Non-interest income, which is made up of transactional fees and forex trading income increased by 52% year-on-year. The bank’s uptake on digital platforms continued to improve as investments were made to increase network availability and reliability. The forex business recorded growth of 75% largely as a result of increased volume of trade compared to the prior period,” Kumwenda said.

Overall, the CEO stressed that the bank was confident in the environment of an increased lending in a low interest rate regime.