Africa-Press – Malawi. National Bank of Malawi (NBM) plc has reported a sharp rise in profit-after-tax to K197.97 billion, representing a 95 percent jump from K101.71 billion recorded in 2024.
According to the newly released financial statements signed by Chief Executive Officer Harold Jiya, Board Chairperson Grant Kabango, Director Madalo Mwenelupembe, and Chief Financial Officer Daniel Jere, the bank’s performance was largely driven by strong growth in customer deposits, which in turn boosted the loan book and investments in fixed-income securities.
Customer deposits rose by 44 percent year-on-year (2024: 37 percent), while the loan book expanded by 31 percent (2025: 15 percent). Investments in fixed-income securities also increased by 33 percent, although this was lower than the 65 percent growth recorded in 2024.
The statement further indicates that other income surged by 93 percent, rising from K103.95 billion. This growth was mainly attributed to increased profits from foreign exchange trading, higher fees and commissions, and capital gains from listed equity investments. Meanwhile, operating expenses rose by 25 percent—remaining below the annual headline inflation rate of 28.4 percent.
NBM plc also credited its improved performance to stronger management of its subsidiaries, including Akiba Commercial Bank in Tanzania.
“All subsidiaries registered improved performances compared to the prior year, contributing positively to Group profitability. Efforts to turn around Akiba Commercial Bank through short- and medium-term strategies have begun to yield positive outcomes, resulting in a reduced loss compared to the previous year,” the statement reads.
On the macroeconomic front, the bank noted that modest economic recovery supported its growth. Malawi’s economy is estimated to have expanded by 2.8 percent in 2025, up from 1.8 percent in 2024, largely driven by improved agricultural output, alongside gains in tourism and mining.
Inflation also eased to an annual average of 28.4 percent from 32.2 percent the previous year. This decline has been partly attributed to government interventions following elections, including the importation of staple maize from Zambia to stabilise food prices.
However, the bank cautioned that economic gains continue to be constrained by persistent foreign exchange shortages, high inflation, and rising public debt pressures.
Interest rates remained elevated, with the Reserve Bank of Malawi maintaining the policy rate at 26 percent throughout the year. The official exchange rate also remained fixed at K1,751 to the US dollar, despite ongoing foreign exchange scarcity in the market.
Looking ahead, NBM plc projects stronger economic growth of 3.8 percent in 2026, up from 2.7 percent in 2025. This outlook is anchored on increased investment in key sectors such as agriculture, tourism, mining, and manufacturing, alongside government spending on infrastructure, transport, and energy.
The bank also highlighted policy initiatives under the National Economic Recovery Plan (NERP) and the 2026/2027 National Budget as critical to improving foreign exchange availability, strengthening the external sector, and supporting broader economic resilience.
Efforts to stabilise the macroeconomic environment—including domestic debt restructuring, tighter fiscal discipline, and enhanced revenue mobilisation—are expected to ease interest rates and stimulate private sector activity.
Meanwhile, NBM plc has declared a total dividend of K92.4 billion, translating to K197.92 per ordinary share, up from K59.0 billion (K126.35 per share) in 2024. In 2023, the bank paid K102.80 per share in dividends—highlighting a steady upward trajectory in shareholder returns.
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