FDH Bank Eyes Record K151 Billion Post Tax Profit: A Milestone for Malawi’s Economic Growth

Key Business Points

• FDH Bank has projected a significant increase in profit-after-tax for 2025, ranging from K140 billion to K151 billion, representing a 92 to 104 percent growth from the previous year.
• The bank’s growth is attributed to robust growth in public and private sector credit demand and sustained growth in customer deposits, which have supported the expansion of its earning asset base.
• Despite challenging operating conditions, including foreign exchange shortages and elevated inflationary pressures, the bank remains cautiously optimistic about its future performance and plans to align its strategy with national development priorities.

The latest projection from FDH Bank, a listed company on the Malawi Stock Exchange, indicates a promising outlook for the bank’s financial performance in 2025. According to the bank’s Managing Director, Noel Nkulichi, the estimated profit-after-tax range of K140 billion to K151 billion represents a significant increase from the K74.06 billion post-tax profit made in the previous year. This growth is primarily driven by increased credit demand from both the public and private sectors, as well as sustained growth in customer deposits.

Nkulichi noted that the bank’s year-to-date performance is materially higher than that recorded in the corresponding period in 2024, with the bank’s management expecting the full-year 2025 performance to exceed that of 2024 by a margin of between 92 percent and 104 percent. This positive outlook reflects the bank’s commitment to growth, innovation, and competitive financial solutions. As Nkulichi put it, "This outlook reflects the bank’s continued commitment to growth, innovation and the delivery of competitive financial solutions to its customers."

Despite the positive performance, Nkulichi acknowledged that the operating environment remains challenging, characterized by foreign exchange shortages and elevated inflationary pressures. However, the bank has implemented prudent strategies to mitigate these challenges and sustain profitability. Looking ahead to 2026, FDH Bank remains cautiously optimistic, anticipating an improvement in business conditions supported by expected policy interventions by the government aimed at strengthening economic activity and the financial sector.

As Mkulichi noted, "FDH Bank plc will continue to align its strategy with national development priorities while supporting key sectors of the economy." This approach is in line with the bank’s commitment to supporting Malawi’s economic growth and development, and is likely to resonate with local entrepreneurs and business owners who are looking for kwacha kupita kweni (long-term financial solutions). With its strong financial performance and strategic alignment with national development priorities, FDH Bank is well-positioned to support the growth of Malawi’s private sector and contribute to the country’s economic development.

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