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NBS

NBS BankMAL:NBS Stock Report

Market Cap

MK66.9b

7D

-0.04%

1Y

9.5%

Updated

15 Oct, 2021

Data

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

NBS Overview

NBS Bank plc provides retail and corporate banking, and treasury management products and services to individuals, small and medium businesses, large corporations, and public institutions in Malawi.

Price History & Performance

Summary of all time highs, changes and price drops for NBS Bank
Historical stock prices
Current Share PriceMK22.99
52 Week HighMK0
52 Week LowMK0
Beta-0.11
1 Month Change-12.65%
3 Month Change-12.88%
1 Year Change9.48%
3 Year Change129.90%
5 Year Change194.74%
Change since IPO129.90%

Recent News & Updates

Shareholder Returns

NBSMW BanksMW Market
7D-0.04%-1.6%-0.7%
1Y9.5%36.3%27.2%

Return vs Industry: NBS underperformed the MW Banks industry which returned 36.3% over the past year.

Return vs Market: NBS underperformed the MW Market which returned 27.2% over the past year.

Price Volatility

Is NBS's price volatile compared to industry and market?
NBS volatility
NBS Beta-0.11
Industry Beta0.68
Market Beta1

Stable Share Price: NBS is not significantly more volatile than the rest of MW stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: NBS's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2003n/aKwanele Ngwenyahttps://www.nbs.mw

NBS Bank plc provides retail and corporate banking, and treasury management products and services to individuals, small and medium businesses, large corporations, and public institutions in Malawi. It offers current, savings, investment, and term deposit accounts; corporate, mortgage, personal, short-term, SME, agri-business, and motor vehicle loans, as well as overdraft facilities and asset finance; and credit products. The company also issues debt securities; provides derivatives for risk management purposes; and invests in liquid assets, such as short-term placement and corporate government debt securities.

NBS Bank Fundamentals Summary

How do NBS Bank's earnings and revenue compare to its market cap?
NBS fundamental statistics
Market CapMK66.91b
Earnings (TTM)MK8.60b
Revenue (TTM)MK38.30b

7.8x

P/E Ratio

2.8x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NBS income statement (TTM)
RevenueMK38.30b
Cost of RevenueMK0
Gross ProfitMK38.30b
ExpensesMK29.70b
EarningsMK8.60b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.95
Gross Margin100.00%
Net Profit Margin22.45%
Debt/Equity Ratio26.7%

How did NBS perform over the long term?

See historical performance and comparison

Dividends

5.7%

Current Dividend Yield

44%

Payout Ratio

Valuation

Is NBS Bank undervalued compared to its fair value and its price relative to the market?

7.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NBS (MWK22.99) is trading above our estimate of fair value (MWK10.62)

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


Price To Earnings Ratio

PE vs Industry: NBS is good value based on its PE Ratio (7.8x) compared to the MW Banks industry average (12.1x).

PE vs Market: NBS is good value based on its PE Ratio (7.8x) compared to the MW market (12.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NBS is overvalued based on its PB Ratio (2.8x) compared to the MW Banks industry average (2.7x).


Future Growth

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

19.1%

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 NBS Bank 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 NBS Bank performed over the past 5 years?

62.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NBS has high quality earnings.

Growing Profit Margin: NBS's current net profit margins (22.5%) are higher than last year (17.8%).


Past Earnings Growth Analysis

Earnings Trend: NBS has become profitable over the past 5 years, growing earnings by 62.5% per year.

Accelerating Growth: NBS's earnings growth over the past year (45.9%) is below its 5-year average (62.5% per year).

Earnings vs Industry: NBS earnings growth over the past year (45.9%) exceeded the Banks industry 11%.


Return on Equity

High ROE: NBS's Return on Equity (36.6%) is considered high.


Financial Health

How is NBS Bank'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: NBS's Assets to Equity ratio (12.1x) is moderate.

Allowance for Bad Loans: NBS has a low allowance for bad loans (70%).

Low Risk Liabilities: 94% of NBS's liabilities are made up of primarily low risk sources of funding.

Loan Level: NBS has an appropriate level of Loans to Assets ratio (20%).

Low Risk Deposits: NBS's Loans to Deposits ratio (23%) is appropriate.

Level of Bad Loans: NBS has a high level of bad loans (3.3%).


Dividend

What is NBS Bank current dividend yield, its reliability and sustainability?

5.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NBS's dividend (5.65%) is higher than the bottom 25% of dividend payers in the MW market (1.43%).

High Dividend: NBS's dividend (5.65%) is in the top 25% of dividend payers in the MW market (4.81%)


Stability and Growth of Payments

Stable Dividend: NBS's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44%), NBS's dividend payments are well 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?

3.5yrs

Average management tenure


CEO

Kwanele Ngwenya (52 yo)

4.5yrs

Tenure

Mr. K.B. Ngwenya, MCIBS, MSC (Strategy), MBA (Bus. Admin), CBMBA (Chartered Banker) Dip (Bus Mgt), Dip (Fin Mgt) is employed with NBS Bank Plc (formerly, NBS Bank Ltd). He serves as Chief Executive Office...


Leadership Team

Experienced Management: NBS's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: NBS's board of directors are considered experienced (4.4 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

NBS Bank Plc's employee growth, exchange listings and data sources


Key Information

  • Name: NBS Bank Plc
  • Ticker: NBS
  • Exchange: MAL
  • Founded: 2003
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: MK66.914b
  • Shares outstanding: 2.91b
  • Website: https://www.nbs.mw

Location

  • NBS Bank Plc
  • NBS House
  • Cor Chipembere Hwy & Johnstone Rd
  • Blantyre
  • 3
  • Malawi

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/15 17:03
End of Day Share Price2021/10/14 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.