Malawi’s banking sector is poised for a record-breaking year, with four listed banks projected to rake in a staggering K630 billion in profits in 2025, a whopping 88 percent jump from K335 billion in 2024.
Analysts have attributed this feat to a number of factors, including robust loan growth, sky-high interest rates and lucrative lending to the government.
The four banks have published trading statements, which show that National Bank of Malawi (NBM) plc expects profit of up to K211 billion from K98 billion in 2025 while FDH Bank plc projects its profit to rise to K152 billion from K74 billion the previous year.
NBS Bank plc expects profit to range between K145.5 billion and K150.5 billion from K72.9 billion in 2024 while Standard Bank plc projects its 2025 profit to be between K112.3 billion and K120.9 billion from K86.4 billion in 2024.
The expected profit is coming at a time the banks’ balance sheets are showing that the sector remained resilient up to the third quarter of 2025, maintaining adequate capital, satisfactory earnings, sufficient liquidity, improved asset quality and growth.
The Reserve Bank of Malawi (RBM) Financial Stability Report for October 2025 indicated that the banks’ capital and liquidity improved and remained above prudential thresholds.
Reads the report in part: “Likewise, asset quality significantly improved with the non-performing loans ratio dropping to 5.1 percent, reducing the sector’s exposure to credit risk. Total industry assets increased by 15.6 percent to K8.5 trillion.
