By Chisomo Phiri
CDH Investment Bank has reported a strong financial performance for the year ended 31 December 2025, posting a profit after tax of K43.221 billion, an 84% increase from K23.534 billion recorded in the previous year.
According to the bank’s latest financial statement signed by its Chief Executive Officer (CEO ) and Managing Director Thoko Mkavea, the performance was driven by a 69% rise in operating income and that the net interest income increased by 45% to K25.424 billion, up from K17.554 billion in 2024.
The statement says the bank’s non-interest income also contributed significantly to its growth, reaching K64.139 billion.
It says despite a 54% increase in operating expenses, the bank improved its operational efficiency, with the cost-to-income ratio declining from 39% to 28%, reflecting stronger income generation relative to costs.
The statement further shows that the bank’s balance sheet also expanded substantially during the period and the total assets grew by 82% to K974.234 billion, compared to K536.766 billion in 2024.
Reads the statement in part:”This growth was supported by an 84% increase in customer deposits and an 83% rise in investment funds.Loans and advances also recorded strong growth, underscoring our continued support for private sector development.”
Meanwhile,in its commentary, the bank’s board attributes the results to the bank’s resilience in a challenging macroeconomic environment indicating that the Malawi’s economy grew by an estimated 2.8% in 2025, up from about 1.8% in 2024, supported by modest recoveries in agriculture, tourism, mining, and infrastructure development.
However, it says the environment remained constrained by persistent foreign exchange shortages, high inflation, and rising public debt and that the annual average inflation eased to 28.4% from 32.3% in 2024, helped by lower food prices, although utility costs remained elevated.
Reads further the statement:”The Reserve Bank of Malawi (RBM) maintained a tight monetary stance, keeping the policy rate at 26.0%, which helped stabilize market interest rates.
“The exchange rate remained broadly steady at about MWK 1,751 to the US dollar, despite ongoing foreign currency pressures.”
The bank’s board has since expressed gratitude to stakeholders, including customers, shareholders, the government,RBM, and business partners for their continued support.
Commenting on the results,Mkavea says the performance reflects the dedication of staff and the continued trust of clients operating in a difficult environment.
“We are proud of our team and remain committed to investing in them as they continue to serve our customers and the communities that support us,” he says.
He says looking ahead, the government projects economic growth of 3.8% in 2026, driven by investment in agriculture, mining, tourism, and manufacturing whereas inflation is expected to moderate further to around 15%, supported by improved food supply and tighter fiscal and monetary policies.
Adds Mkavea:”However, risks remain, including foreign exchange shortages, high import costs, and global supply chain disruptions.”
The financial statements were accompanied by an unqualified audit opinion from independent auditors, confirming that they fairly present the bank’s financial position in accordance with International Financial Reporting Standards (IFRS).
CDH Investment Bank is a key player in Malawi’s financial sector, and continues to focus on sustainable value creation and supporting national economic development
