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NBM

National Bank of MalawiMAL:NBM Stock Report

Market Cap

MK327.3b

7D

0.001%

1Y

13.3%

Updated

26 Oct, 2021

Data

Company Financials
NBM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance5/6
Financial Health4/6
Dividends4/6

NBM Overview

National Bank of Malawi plc, together with its subsidiaries, provides retail, corporate, and investment banking services in Malawi.

Rewards

PE ratio (12.2x) is below the MW market (12.5x)

Earnings grew by 57.3% over the past year

Pays a reliable dividend of 4.74%

Risk Analysis

No risks detected for NBM from our risk checks.

Price History & Performance

Summary of all time highs, changes and price drops for National Bank of Malawi
Historical stock prices
Current Share PriceMK701.01
52 Week HighMK0
52 Week LowMK0
Beta0.033
1 Month Change3.70%
3 Month Change7.83%
1 Year Change13.30%
3 Year Change111.15%
5 Year Change172.82%
Change since IPO-86.77%

Recent News & Updates

Shareholder Returns

NBMMW BanksMW Market
7D0.001%2.2%1.0%
1Y13.3%39.4%26.7%

Return vs Industry: NBM underperformed the MW Banks industry which returned 39.4% over the past year.

Return vs Market: NBM underperformed the MW Market which returned 26.5% over the past year.

Price Volatility

Is NBM's price volatile compared to industry and market?
NBM volatility
NBM Beta0.033
Industry Beta0.67
Market Beta1

Stable Share Price: Insufficient data to determine NBM's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine NBM's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
1971n/aMacfussy Kawawahttps://natbank.co.mw

National Bank of Malawi plc, together with its subsidiaries, provides retail, corporate, and investment banking services in Malawi. It operates through three segments: Retail and Corporate Banking, Treasury, and Other. The company offers various deposit products, including savings, current, special savers, student saver, and call accounts, as well as fixed and short term deposits.

National Bank of Malawi Fundamentals Summary

How do National Bank of Malawi's earnings and revenue compare to its market cap?
NBM fundamental statistics
Market CapMK327.32b
Earnings (TTM)MK26.83b
Revenue (TTM)MK90.39b

12.2x

P/E Ratio

2.5x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NBM income statement (TTM)
RevenueMK90.39b
Cost of RevenueMK0
Gross ProfitMK90.39b
ExpensesMK63.57b
EarningsMK26.83b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)57.45
Gross Margin100.00%
Net Profit Margin29.68%
Debt/Equity Ratio9.2%

How did NBM perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

58%

Payout Ratio

Valuation

Is National Bank of Malawi undervalued compared to its fair value and its price relative to the market?

12.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NBM (MWK701.01) is trading above our estimate of fair value (MWK232.7)

Significantly Below Fair Value: NBM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NBM's PE Ratio (12.2x) is in line with the MW Banks industry average.

PE vs Market: NBM is good value based on its PE Ratio (12.2x) compared to the MW market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NBM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NBM is good value based on its PB Ratio (2.5x) compared to the MW Banks industry average (2.7x).


Future Growth

How is National Bank of Malawi forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.4%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as National Bank of Malawi has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has National Bank of Malawi performed over the past 5 years?

7.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NBM has high quality earnings.

Growing Profit Margin: NBM's current net profit margins (29.7%) are higher than last year (25.7%).


Past Earnings Growth Analysis

Earnings Trend: NBM's earnings have grown by 7.6% per year over the past 5 years.

Accelerating Growth: NBM's earnings growth over the past year (57.3%) exceeds its 5-year average (7.6% per year).

Earnings vs Industry: NBM earnings growth over the past year (57.3%) exceeded the Banks industry 11%.


Return on Equity

High ROE: NBM's Return on Equity (19.6%) is considered low.


Financial Health

How is National Bank of Malawi's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: NBM's Assets to Equity ratio (5.1x) is low.

Allowance for Bad Loans: NBM has a low allowance for bad loans (37%).

Low Risk Liabilities: 88% of NBM's liabilities are made up of primarily low risk sources of funding.

Loan Level: NBM has an appropriate level of Loans to Assets ratio (33%).

Low Risk Deposits: NBM's Loans to Deposits ratio (47%) is appropriate.

Level of Bad Loans: NBM has a high level of bad loans (11.9%).


Dividend

What is National Bank of Malawi current dividend yield, its reliability and sustainability?

4.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NBM's dividend (4.74%) is higher than the bottom 25% of dividend payers in the MW market (1.43%).

High Dividend: NBM's dividend (4.74%) is low compared to the top 25% of dividend payers in the MW market (4.8%).


Stability and Growth of Payments

Stable Dividend: NBM's dividends per share have been stable in the past 10 years.

Growing Dividend: NBM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.8%), NBM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Macfussy Kawawa (57 yo)

5.75yrs

Tenure

Mr. Macfussy M. Kawawa, B.Acc(Hons), FCCA, CPA, MBA, CA (MW) CA-(M), serves as Acting Chief Executive Officer at National Bank of Malawi and served as its Chief Financial Officer. Mr. Kawawa served as Gene...


Leadership Team

Experienced Management: NBM's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: NBM's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

National Bank of Malawi plc's employee growth, exchange listings and data sources


Key Information

  • Name: National Bank of Malawi plc
  • Ticker: NBM
  • Exchange: MAL
  • Founded: 1971
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: MK327.324b
  • Shares outstanding: 466.93m
  • Website: https://natbank.co.mw

Location

  • National Bank of Malawi plc
  • NBM Towers
  • 7 Henderson Street
  • Blantyre
  • Malawi

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 21:16
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.