Commercial banks remained resilient amid economic volatility, with the sector’s cumulative assets growing by 53 percent in 2024 to K6.1 trillion.
Figures from the Bankers Association of MalawiBam)—the umbrella body for commercial banks—show that in the year under review, the country’s eight commercial banks recorded a total net income of K1.2 trillion.
The country’s eight banks recorded a combined K453.5 billion profit in the year, underscoring the sector’s financial health and stability.
The sector’s positive outturn is amid myriad challenges rocking the operating environment including rising headline inflation, acute forex scarcity, and continued exchange rate volatility.
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The banking sector has remained resilient, withstanding economic shocks such as climate-related disasters.
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Bam President Phillip Madinga said the banking sector remains capable of facilitating increased lending, investment, and economic activity.
He said a well-capitalised and profitable banking sector ensures continued reinvention in technological innovation, employment creation, and corporate social responsibility, reinforcing its role in Malawi’s long-term economic vision.
“The performance of commercial banks [in 2024] has showcased resilience, growth, and a strong commitment to national development.
“Banks continue to be pillars of economic progress, contributing to digitalisation, financial inclusion, tax revenue generation, employment expansion, and corporate social investment,” Madinga said.
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In the year under review, contributed combined corporate tax revenue of K283.4 billion, reinforcing their position as key contributors to government funding.
The revenue, according to Madinga, aids national development efforts by supporting essential sectors such as healthcare, infrastructure, and education.
He said the banking industry’s tax contributions enhance public services and pave the way for sustainable economic growth, ensuring that resources are allocated to areas aligned with Malawi 2063’s vision of inclusive prosperity.
“These efforts align closely with Malawi 2063’s vision for a wealthy, self-sustaining, and technologically advanced nation,” Madinga said.
In 2024 alone, credit to the private sector stood at K239.3 billion.
Madinga said the investment has played a crucial role in empowering businesses, particularly small and medium enterprises (SMEs), which are the backbone of the economy.
He said increased access to credit fosters entrepreneurship, innovation, and job creation.
Notable credit expansion is anticipated in Agriculture, Tourism, and Mining, which have been targeted for strategic improvement within the national agenda.
“By financing various sectors, banks enable companies to expand, invest in new ventures, and strengthen Malawi’s industrial and commercial landscape,” Madinga said.
Looking ahead, Madinga said a steady growth in sector intermediation is expected in the first half of 2025, supporting the projected gross domestic product increase of 3.2 percent, which is higher than the 1.8 percent recorded in 2024. Malawi’s commercial banks collectively employ approximately 5,114 individuals.
