The banking sector has demonstrated continued resilience, having posted a combined profit of K260.41 billion in the year ended December 31 2023.
This represents a 52 percent increase from a combined profit of K170.51 billion reported in 2022.
For example, National Bank of Malawi posted a K71.96 billion profit in 2023 from K45.9 billion in 2022. Standard Bank reported a K52.5 billion profit from K39.2 billion the previous year while FDH Bank made a profit of K35.62 billion from K22.93 billion in 2022.
Ecobank posted a profit of K30.25 billion (from K18.17 billion in 2022), NBS Bank reported a profit of K29.38 billion (from K18.91 billion in 2022), First Capital Bank made K28.99 billion in profit (from K18.27 billion in 2022) whereas CDH Investment Bank made K11.14 billion (from K7.53 billion in 2022).
During the year, Centenary Bank registered a turnaround from making a loss of -K0.39 billion in 2022 to a profit of K0.55 billion.
Bankers Association of Malawi President Zandile Shaba said the performance reflects resilience of the banking sector.
“With keen focus on innovation, adaptive strategies, prudent risk management, the banking sector strives for a future characterised by sustained progress and growth,” Shaba said.
Financial Market Dealers Association President Leslie Fatch said the financial services sector performance comes on the back of huge capital investment as reflected in players’ equity position.
He said this has allowed banks to build strong balance sheets, registering both interest income and noninterest income revenue growth as a result of such investments.
“The profitability should continue to give Malawians confidence in the sector,” Fatch said.
Economics Association of Malawi (Ecama) President Bertha Chikadza partly attributed the banking sector’s outstanding performance to the government’s appetite for borrowing.
In a separate interview, Executive Director of the Consumers Association of Malawi John Kapito said the banking sector demands a strong and independent financial and competitions authority, describing the profit as unbelievable.
“The banks have failed to offer better interest rates for depositors’ money while maintaining high lending interest rates that cannot go on forever. Something must be done; either parliament has to come in,” Kapito said.
