By Linda Kwanjana
National Bank of Malawi (NBM) plc has announced an increase in its profit-after-tax to K197.97 billion, marking a 95% increase over the recorded previous profit after tax of K101.71 billion in 2024.
In the just-released financial statement signed by Chief Executive Officer (CEO) Harold Jiya, Board Chairperson Grant Kabango, Director Madalo Mwenelupembe, and Chief Financial Officer (CFO) Daniel Jere, NBM plc’s results were largely driven by growth in customer deposits, which fueled an increase in the loan book and fixed-income securities.
“Customer deposits increased by 44% (2024: 37%) year-on-year, while the loan book grew by 31% (2025:15%). Investments in fixed income securities increased by 33 % (2024: 65%)”.
“Other income grew by 93%, increasing from K103.95 billion, largely due to growth in profits on foreign exchange dealings, fees and commissions and capital appreciation on listed equity investment. Operating expenses increased by 25% below the annual headline inflation of 28.4%,” reads the statement in part.
The Bank also said the growth has been driven by better results in managing all 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 in Tanzania through short- and medium-term strategies have begun to bear positive outcomes, which resulted in the Bank reporting a lower loss compared to the previous year,” the statement reads.
NBM plc also said modest economic growth and easing inflation partly contributed to the increase in profits.
“The Malawi economy grew by an estimated 2.8% in 2025 (2024: 1.8%) attributed to a modest recovery in agricultural production. Modest gains in tourism and mining also helped boost economic activity. Annual average year-on-year inflation fell to 28.4% from 32.2% recorded in the prior year. This is attributed to Government policy interventions post-elections to import the staple grain from Zambia to support vulnerable families, which led to a fall in food prices,” reads part of the statement.
However, these gains were countered by persistent foreign exchange scarcity, high inflation, and the effects of rising public debt.
Interest rates, on the other hand, remained relatively stable, though still high, with the Reserve Bank of Malawi maintaining the policy rate at 26% per annum throughout the year. The official Malawi Kwacha exchange rate against the US Dollar remained unchanged in 2025 at K1,751, despite the market having been characterised by persistent foreign exchange scarcity.
Despite several challenged expected in the coming year, the Bank sees a projection of economic growth in the incoming year.
“Economic growth is projected to improve to 3.8% in 2026, from 2.7% in 2025, supported by increased investment in key productive sectors including agriculture, tourism, mining, and manufacturing. Government expenditure on critical enablers such as infrastructure, transport, and energy, together with policy initiatives aimed at promoting export diversification and import substitution under the National Economic Recovery Plan (NERP) and the 2026/2027 National Budget, are expected to improve foreign exchange availability and support external sector resilience.”
“Ongoing efforts to stabilise the macroeconomic environment through domestic debt restructuring, strengthened fiscal discipline, and improved revenue mobilisation are also expected to help moderate interest rates and encourage private sector economic activity,” reads the statement.
Meanwhile, the Bank has declared a total dividend of K92.4 billion, translating to K197.92 per ordinary share, up from K59.0 billion in 2024, which represented K126.35 per share.In 2023, the bank paid K102.80 per share in dividends.
