Malawi's FDH Bank profit doubles to $85M on lending growth

FDH Bank, a wholly owned subsidiary of FDH Financial Holdings Limited and founded by Malawian billionaire Thom Mpinganjira, reported a strong performance in 2025, with profits doubling to $85 million, up from less than $45 million over the same period last year.

The bank attributed the growth to improved operational efficiency, disciplined cost management, and increased lending to high-performing sectors, which supported both revenue expansion and profitability.

Profit rises on stronger interest income and growing loan portfolio

According to its disclosure, FDH Bank reported a net profit of MWK147.8 billion ($85.2 million), a 99.75% increase from MWK74.1 billion ($42.74 million) a year earlier. This performance was driven by a 71% surge in revenue, which grew to MWK333 billion ($191.23 million), particularly thanks to net interest income, which increased by 82% to MWK257 billion ($147.57 million), driven by robust growth in the loan book, despite challenging macroeconomic conditions.

Expansion into Mozambique signals regional ambition

A key milestone in 2025 was the acquisition of Ecobank Mozambique, marking FDH Bank’s first major cross-border move. The deal reflects a broader strategy to evolve into a regional banking player across Southern Africa. Nkulichi said the bank will continue exploring expansion opportunities aligned with its long-term growth vision, particularly in markets offering trade and export potential.

Strong earnings and balance sheet expansion

The lender’s 100% surge in profit reflects improved operational efficiency and disciplined execution, according to Managing Director Noel Nkulichi. Speaking at an investment forum in Blantyre, Nkulichi said the results align with the bank’s long-term strategy focused on sustainable growth and shareholder value. Assets growth to MWK1.636 trillion highlights continued loan book expansion and increased customer deposits, positioning FDH Bank Plc among Malawi’s fastest-growing financial institutions.

Shareholder returns and market performance

FDH Bank delivered strong returns to investors, declaring dividends of MWK57.07 billion ($32.92 million), representing MWK8.27 per share, up from MWK32.64 billion ($18.83 million), representing MWK4.73 per share in 2024.

The bank’s share price surged to MWK583.9 as of report writing, a sharp increase from its initial public offering price of MWK10 in 2020, reflecting sustained investor confidence.

Beyond financial performance, the bank invested MWK3.1 billion ($1.79 million) in corporate social responsibility initiatives, focusing on food security and community development across Malawi.

Mpinganjira family leadership

Founded in 2008, FDH Bank has become a top player in Malawi’s financial sector. After Thom Mpinganjira stepped down in 2020, his son, William Mpinganjira, assumed leadership of FDH Financial Holdings.

Under William’s leadership, total assets rose 31.38% to to MWK1.636 trillion ($943.69 million at the end of December 2025, up from MWK1.241 trillion ($715.84 million) a year earlier. This underscores the balance sheet expansion in a challenging operating environment marked by foreign exchange constraints and lower interest rates in Malawi.

Noel Nkulichi is the Managing Director of FDH Bank

FDH Bank is expected to deepen its regional footprint while strengthening its exposure to resilient sectors such as mining and exports. Continued balance sheet expansion and disciplined lending will be critical as the bank navigates currency volatility and evolving monetary conditions in Southern Africa.