CDH Investment Bank posted a K23.534 billion profit after tax for the financial year.
The period is that ending December 31, 2024, a published summary of audited results has shown.
This represents a 111 percent jump in profit when compared to the K11.141 billion which the bank reported in 2023.
During the period under review, the bank’s total assets grew by 72 percent from K311 billion to K536 billion.
Customer deposits grew by 27 percent year on year while the bank’s loans and advances grew by 28 percent. Investment funds and financial assets grew by 161 percent and 160 percent, respectively.
Net interest income grew by 100 percent while non-interest income grew by 36 percent to K15.8 billion in 2024.
Overall net revenue grew by 76 percent as indicated in the financial summary, which was endorsed by the bank’s Board Chairperson, Franklin Kennedy, Chairperson of the Board Audit Committee Sydney Chikoti, Chief Executive Officer and Managing Director, Thoko Mkavea and Chief Finance Officer, Kelvin Mkulichi.
The leading specialist bank in Malawi continues to successfully leverage its unique proposition to integrate investment banking with traditional commercial banking activities to deliver impressive value to its stakeholders, generating an impressive return on shareholders’ equity of 52 percent.
The report further added that: “Operating expenses grew by 40% year on year. Notwithstanding the increase in expenses, the cost to income ratio went down to 39 percent from 43 percent in the prior year.”
Looking ahead, the Government projects the economy to grow by 4% in 2025, mainly buoyed by improved food security, better export earnings, and investments mainly in agriculture, mining, and tourism, “the publication narrates.”
Inflation and interest rates are expected to stabilize at the current levels. However, these prospects could be blurred in the event of fiscal slippage because of increased Government spending and adverse weather-related shocks, among other things.
The outlook could also be dependent on the prospects of renewal of the IMF-supported ECF programme, which could determine the rate of foreign currency flows to Malawi, affecting the importation of critical raw materials. In addition, increasing uncertainties in the global economy, which could have some repercussions for Malawi, mainly stemming from potential intensification of protectionist policies in the form of tariffs, which could worsen trade tensions and lower investment; geopolitical tensions in Europe and Africa; and scaling down of US aid to Malawi.
“The bank thanks all its stakeholders, including its valued clients, the shareholders, the Government of Malawi, the Reserve Bank of Malawi, the media, banks, and all its partners who supported it, resulting in a good performance, “reads the financial statement.
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