Standard Bank Malawi plc has posted a 64 percent increase in profit-after-tax for 2024 to K86.4 billion, amid a challenging economic landscape.
The bank’s total revenue rose by 27 percent year-on-year, primarily driven by a 43 percent surge in net interest income.
This is according to the bank’s published financial statements.
The bank reported that credit impairments increased by 56 percent due to growing customer loan portfolio and downgrades in the face of deteriorating macroeconomic conditions.
Standard Bank Chief Executive Officer Phillip Madinga attributed the impressive performance to the bank’s resilience and strategic execution.
He said the growth in net interest income stemmed from a 29 percent increase in loans and advances to customers and an increase in financial investments.
“The group demonstrated remarkable resilience and experienced growth despite the challenging economic environment characterised by high inflation and disparities in the supply and demand for foreign currency.
“Furthermore, net interest income was positively impacted by rising reference rates, which escalated from 23.6 percent in December 2023 to 25.3 percent in 2024, alongside an average yield increase of 2 percent across all tenors of government securities,” Madinga said.
Board Chairperson Christopher Kapanga noted that while net fees and commissions grew by 18 percent due to higher transaction volumes, this growth was “partially offset by regulatory restrictions that removed fees for certain services.”
Kapanga also highlighted challenges in the trading environment, stating that trading revenue decreased by 9 percent, primarily because of lower trading volumes caused by a shortage of foreign currency.
“The group remains committed to previously written-off loans and upholding prudent risk management and responsible lending practices,” Kapanga said.
Additionally, earnings per share increased significantly from K223.49 in 2023 to K367.51 in 2024.
The bank’s directors have declared a second interim dividend of K16.5 billion, representing K70.31 per ordinary share, payable on April 4, 2025.
They also recommended a final dividend of K16.5 billion, representing K70.31 per ordinary share, to be tabled at the forthcoming Annual General Meeting.
