By Linda Kwanjana

FDH Bank plc has projected a profit after tax of between K140 billion and K151 billion for the year ended December 31, 2025, representing a 92 to 104 percent increase from K74.06 billion recorded in the previous financial year.

In a profit caution statement issued to the Malawi Stock Exchange (MSE), FDH Bank Company Secretary Juliano Kanyongolo said the projected performance reflects the bank’s strong fundamentals, disciplined growth strategy, and prudent risk management, noting that the figures remain unaudited and subject to final review.

“These provisional results reflect the resilience of our business model and our continued focus on sustainable value creation. Despite operating in a challenging environment characterised by inflationary pressures and tight liquidity conditions, the bank has remained stable, supported by sound governance structures, cost discipline, and a diversified income base,” said Kanyongolo.

Kanyongolo said the bank remains committed to transparency and compliance with regulatory requirements, adding that the audited financial statements will be published within the statutory timeframe.

“As a listed institution, we recognise our obligation to keep the market adequately informed. The release of the audited results will provide a complete and accurate picture of the bank’s performance, financial position, and outlook,” said Kanyongolo.

Commenting from an independent perspective, financial analyst Benedicto Nkhoma said FDH Bank’s projected performance is broadly consistent with prevailing sector trends and reflects both macroeconomic conditions and internal operational efficiencies.

“The projected profit growth is likely driven by increased interest income in a high interest-rate environment, balance sheet expansion, particularly through investment in government securities, improved cost management, and potentially lower impairment charges,” said Nkhoma.

He cautioned, however, that headline profit figures should be assessed within the broader economic context.

“In an inflationary environment, nominal profits can rise significantly even where real growth is more moderate. Investors should therefore pay close attention to the quality and sustainability of earnings, as well as confirmation through the audited results,” said Nkhoma.

FDH Bank plc is one of the five commercial banks listed on the 16-counter Malawi Stock Exchange, alongside National Bank of Malawi, NBS Bank, Standard Bank plc, and FMB Capital Holdings, which owns First Capital Bank.