By Our Reporter

Blantyre, Malawi – National Bank of Malawi (NBM) plc has reported a record profit after tax of K197.97 billion for the financial year ended 31 December 2025, marking a 95 percent increase from the K101.71 billion recorded in 2024 despite operating in a difficult economic environment.

The strong financial performance highlights the resilience of Malawi’s largest listed commercial bank, which continued to grow earnings amid persistent foreign exchange shortages, fuel scarcity and high inflation that affected businesses across the country.

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Speaking during the bank’s Annual General Meeting (AGM) in Blantyre, Board Chairperson Grant Kabango attributed the impressive results to the bank’s strategic focus, improved operational performance and strong contributions from its subsidiaries.

Kabango said every subsidiary within the NBM Group delivered better results than in the previous financial year, strengthening the group’s overall profitability.

“All of the bank’s subsidiaries performed better than last year (2024), which boosted overall profits. The turnaround efforts for Akiba Commercial Bank in Tanzania are working and its losses dropped compared to the previous year,” said Kabango.

The improved performance of Akiba Commercial Bank represents a significant milestone for NBM, as the Tanzanian subsidiary has been undergoing restructuring aimed at restoring profitability and improving operational efficiency.

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The bank’s latest financial results come at a time when Malawi’s economy continues to grapple with macroeconomic pressures, including limited foreign currency availability, rising prices and intermittent fuel shortages that have increased the cost of doing business.

Despite these challenges, NBM maintained strong earnings growth, demonstrating the resilience of its business model and the effectiveness of its management strategies.

Shareholders attending the AGM are expected to approve a final dividend of K52.28 billion, translating to K111.97 per share for the 2025 financial year.

If approved, the final dividend will bring the bank’s total dividend distribution for the year to K92.41 billion, equivalent to K197.92 per share, after taking into account the two interim dividends that were already paid in October 2025 and April 2025.

The substantial dividend payout reflects the board’s confidence in the bank’s financial position and its commitment to delivering value to shareholders while maintaining adequate capital to support future growth.

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NBM’s strong earnings are expected to further strengthen investor confidence in the bank, which remains one of Malawi’s leading financial institutions with operations extending beyond the country’s borders.

The record profit also underscores the banking sector’s ability to navigate economic headwinds through prudent financial management, diversified operations and strategic investments.

With robust profitability, improved subsidiary performance and a generous dividend proposal, NBM has reinforced its position as one of the country’s strongest corporate performers, providing positive signals for investors and the broader financial sector despite the challenging economic landscape.