By Jones Gadama

Malawi’s banking sector has reached new heights, recording its highest-ever profits in 2024 with cumulative after-tax earnings of K613 billion.

National Bank of Malawi (NBM) has taken the top spot, posting an impressive K101.71 billion profit after tax, representing a 41% increase from K71.96 billion in 2023.

Other banks have also demonstrated remarkable growth, with Standard Bank Malawi registering a 64% jump to K86.4 billion and FDH Bank doubling its earnings to K74 billion, a 108% rise from the previous year.

NBS Bank has delivered the most dramatic growth, with after-tax profits rising by 148% to K72 billion.

According to Bertha Bangara Chikadza, President of the Economics Association of Malawi (ECAMA), this financial strength is a powerful engine for national economic growth and a catalyst for the entire Malawian economy.

Profitable banks directly support government efforts to build a stronger nation through corporate taxes, which help finance national development projects such as education, health, agriculture, and community development.

The impressive profits also translate into fiscal space for the government through taxes and create a multiplier effect through lending, building stability and capacity for credit indispensable for sustainable economic development in Malawi.

Chikadza emphasized that a profitable banking sector is not just beneficial for the banks themselves but critical for the entire economy.

The banking sector’s strong performance is expected to have a positive impact on the country’s economic growth.

With the Malawi Stock Exchange-listed banks projecting a mixed outlook for 2024 due to foreign exchange shortages and slow GDP growth, the sector’s resilience and adaptability will be crucial in navigating these challenges.

Overall, the record profits achieved by Malawi’s banking sector in 2024 demonstrate the industry’s strength and potential to drive economic growth and development.

As the country looks to achieve its development goals, a strong and profitable banking sector will play a vital role in supporting government initiatives and financing national development projects.