National Bank of Malawi (NBM) plc has announced a remarkable financial performance for the six months ending 30 June 2025, recording a profit after tax of K84.1 billion, representing a 100 % increase from K42.1 billion reported during the same period in 2024.
In a statement signed by Chief Executive Officer (CEO) Harold Jiya, Chief Financial Officer Daniel Jere and Directors Grant Kabango, and Madalo Mwenelupembe, the Bank attributed this impressive growth to a surge in customer deposits, expansion of its loan portfolio, strong investment in fixed income securities, and gains from capital appreciation of listed equity investments.
“Customer deposits increased by 50 %, compared to 30 % in 2024, while the Bank’s loan book registered a 23 % increase. Investment in fixed income securities grew by 67 %, contributing to a 47 % growth in net revenue.”
“Other income also rose significantly, increasing by 52 % from K50.5 billion to K77.0 billion, largely driven by profits on foreign exchange dealings linked to agricultural contract farming loan financing schemes.”
“Operating expenses were tightly controlled, growing by just 7 %, well below inflation, reflecting the Bank’s effective cost containment measures. However, credit impairment charges rose by 51 %, from K8.4 billion to K12.7 billion, due to challenging macroeconomic conditions that affected financial investments and loan quality,” reads the statement in part.
The statement also highlights that all subsidiaries posted profits except Akiba Commercial Bank (ACB) in Tanzania, which nevertheless showed improvement by reducing its losses to K0.8 billion from K2.6 billion in 2024, following strategic turnaround initiatives.
“The Bank’s shareholding in United General Insurance Company Limited (UGI) declined slightly from 57 % to 55 %, due to a shareholder subscription exercise completed during the review period,” reads the statement.
NBM plc has also acknowledged that the operating environment remains challenging, with the IMF revising Malawi’s 2025 economic growth forecast downwards to 2.4 % from 3.2 %, while the World Bank projected 2.0 % and the African Development Bank 3.0 %.
“Inflation closed at 27.1 % in the second quarter, down from 30.5 % in the first quarter, with food inflation easing but non-food inflation rising due to higher tariffs and speculative pressure on the Malawi Kwacha. The Kwacha traded at K1,751 per US Dollar on official markets, while weakening further in informal markets,” reads part of the statement.
The Bank cautioned that risks such as global economic slowdown, geopolitical conflicts, persistent inflationary pressures, foreign exchange shortages, La Niña-induced weather patterns, and fiscal pressures linked to the 2025 tripartite elections could weigh heavily on the economy.
“The Bank has confidence in sustaining strong results through resilience and the ability to leverage core strengths,” reads the statement in part.
Commenting on the announcement, renowned motivational speaker and motivator, Benedicto Bena Nkhoma, said shareholders should be pleased by the results.
“The Bank’s performance on all metrics is great. The Bank has also consistently paid dividends, signalling great capital ratios and liquidity ratios. As the number one Bank, it has cemented its leadership position in the market.”
“In addition, the reduction in losses at Akiba Bank is a great relief and a boost to the Bank’s regional expansion, as it can now replicate this across the region,” said Nkhoma.
The NBM plc Board also declared an interim dividend of K16.64 billion, up from K13.0 billion in 2024, representing K35.64 per share compared to K27.84 per share in the previous year.
The dividend will be paid in October 2025.
