National Investment Trust posts K7m profit after tax in 2022; Projects impressive performance in 2023

* The company is eager to sustain the impressive performance in the coming years

* So that they continue improving by registering growth in terms of profits

By Victor Singano Jnr

National Investment Trust (NITL) Plc has announced that it has managed to post K7 million as profit after tax in 2022, which is a great growth of over 60% compared to 2021 when the company posted K4.5 million.

During its annual general meeting (AGM) on Thursday at Ryalls Hotel in Blantyre, where minutes for 2022 performance were delivered, NITL chairperson, Esther Gondwe said the company is excited with the performance — highlighting that it was mainly because of the dedication of the company’s team as they always work hard to ensure the company brings positive results by doing thorough market analysis.

She added that the company is eager to sustain the impressive performance in the coming years so that they continue improving by registering growth in terms of profits.

“The 2022 to us was a great a year because despite experiencing a number of global challenges such as pandemics, shortage of foreign exchange among others,  the company tried to stand by monitoring the market and make good profits.

“It is our hope that from this year we’ll be able to make positive outcomes because as we speak now, we have registered K11 billion half year results for the 2023 and we expect to have more than that come December,” she said.

Minority Shareholders Association of Listed Companies, Frank Harawa said they are happy with NITL’s performance, saying the company is going in the right direction as it is making strides by improving each and every year in terms of performance.

“As shareholders, we make money through capital gains and dividends and NITL has been declaring them and its share price is at K350 and their possibility is to come K400 — so we are really impressed,” Harawa said.

NITL was incorporated in Malawi as a public company on September 20, 2001 — whose principal objective is to provide a vehicle to facilitate broad public participation in a diverse portfolio of equity investments in Malawi.

NITL has been licensed as an investment trust company by Reserve Bank of Malawi in terms of the powers vested in it by Section 35 of the Capital Market Development Act and is listed on the Malawi Stock Exchange (MSE).

Its shares are traded on the MSE — thus creating a secondary market subject to market forces and its investment portfolio is managed with a view to providing its shareholders with a return by way of both annual income and capital growth.

On its website, the company says its Board of Directors recognizes there will always be risk present in any portfolio of investments but has adopted an investment policy which seeks to minimize that risk by avoiding speculative investment and placing limits on the extent of exposure to individual investments.

The investment policy has been prepared by the Board for its use and seeks to guide it in its investment decisions in a structured and prudent manner within the context of the investment objectives of NITL in force from time to time.

NITL is a public scheme available to most investors within and without Malawi, subject only to the restriction on size of investment imposed by the Capital Markets Development Act and any relevant law.

It was established as a vehicle to avail ordinary investors an opportunity to participate in a wider range of investments than those feasible for most individual investors, and to share the costs of doing so.

One the main advantages of NITL is the reduction of capital risk by diversification. By investing in as wide a range of equities and securities, the capital risk of the ordinary investor is reduced.

Subject to exchange control regulations, NITL may invest in foreign securities but the primary focus of its investment portfolio will be Malawi registered securities.