FDH Bank’s Profits Soar: A Sign of Malawi’s Economic Momentum
Key Business Points
- FDH Bank’s profit after-tax more than doubled to K147.8 billion in 2025, signalling strong financial health and growth
- The bank expanded its loan book by 65% and government securities by 49%, boosting total assets by 31%
- Customer deposits rose 27% to K1.125 trillion, showing rising public trust and confidence in the banking sector
FDH Bank plc has reported strong financial performance for the year ended December 31 2025, with profit after-tax more than doubling to K147.8 billion from K74.06 billion the previous year.
The bank’s audited financial results show that growth was driven by significant increases in both interest and non-interest income streams.
"Net interest income rose by 82 percent supported by expansion in the loan book, government securities and other interest-bearing assets," reads the statement.
Total assets also grew by 31 percent largely due to a 65 percent increase in loans and advances and a 49 percent rise in government securities.
During the review period, customers’ deposits increased by 27 percent from K883 billion to K1.125 trillion, reflecting growing customer confidence in the bank, according to the results.
On the other hand, non-interest income went up by 43 percent, mainly driven by higher fees and commissions as well as increased international trade and domestic transaction volumes.
The statement, jointly signed by FDH Bank plc board chairperson Charity Mseka, managing director Noel Mkulichi, chairperson of the finance and audit committee Ulemu Katunga and head of finance Richard Chipezaani, highlights that despite the positive performance, operating expenses increased by 21 percent due to inflationary pressures and rising costs of doing business.
"This growth was partially offset by increased operating expenses, which rose by 21 percent largely due to inflation and the generally high cost of doing business," the statement says.
Maintained strong capital levels
The bank has maintained strong capital levels above the regulatory minimum, positioning itself to support continued lending and investment in Malawi’s economy.
Looking ahead, FDH Bank has set ambitious plans to expand its branch network, upgrade technology infrastructure, and deepen financial inclusion across the country.
The bank has since declared and paid a total of K11.6 billion during the year, equivalent to K1.68 per share.
A further second interim dividend of K50.03 billion or K7.25 per share, was declared in January 2026 and paid in February this year.
These dividend payments underscore the bank’s commitment to returning value to shareholders while continuing to invest in its growth strategy.
The strong financial performance positions FDH Bank as a key driver of economic activity, supporting businesses and individuals with expanded lending capacity and enhanced banking services.
With further branch expansion planned and ongoing technology upgrades, the bank aims to increase accessibility to formal financial services, particularly in underserved areas—critical for Malawi’s broader economic development goals.
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