By Chimwemwe Mangazi
One of the country’s high-street banks, NBS Bank, has emerged as the latest counter on the Malawi Stock Exchange (MSE) to cross the K1 trillion market capitalisation threshold.
The development is a display of growth that underscores the bank’s strategic transformation in recent years.
In a statement, the bank’s chief executive officer Kwanele Ngwenya said the achievement detailed a dramatic financial journey that has seen the institution evolving from a struggling performer to a market leader.
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For example, between 2020 and 2024, the bank’s registered a growth in profits from K7.05 billion to a projected K68.6 billion.
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This illuminates a staggering 133 percent increase that reflects strategic management and market adaptability.
Ngwenya attributed the success to comprehensive strategic planning, sound governance and an unwavering commitment to operational excellence.
“This is not just a number. This milestone represents our commitment to creating a financially resilient institution that delivers genuine value to our stakeholders. Every decision has been made with a clear purpose to build a sustainable and impactful financial institution,” Ngwenya said.
In an interview, Stockbrokers Malawi Limited Equity Research Analyst Kondwani Makwakwa said NBS market capitalisation served as an indicator of investor confidence, particularly following the release of the profit forecast in December 2024.
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“The positive outlook presented in the forecast influenced investors’ perceptions, leading them to reassess and attribute a higher valuation to the company than previously anticipated.
“This increase in market capitalisation suggests that investors have greater expectations for the company’s future performance and profitability,” Makwakwa said.
A daily market report issued by MSE on Wednesday shows a remarkable surge in total market capitalisation, climbing by over K711 billion.
The market capitalisation jumped to K10.9 trillion, representing a substantial 7 percent increase from the previous trading day.
Banking and tourism stocks led the impressive rally, with several key counters delivering double-digit percentage gains that substantially boosted overall market valuation.
NBS Bank emerged as a standout performer, with its stock price escalating by 10.47 percent and significantly contributing to the market’s upward momentum.
Similarly, National Bank of Malawi and FDH Bank demonstrated robust performance, posting price increases of 7.57 percent and 15 percent, respectively.
The tourism sector also made meaningful contributions, with Sunbird Tourism experiencing a remarkable 15 percent price surge.
The Malawi All Share Index rose by 8,008 points and the Domestic Share Index increased by 7,124 points. Notably, only one counter, Telekom Networks Malawi, experienced a decline, sliding by 2.25 percent.
