Standard Bank upbeat on Malawi’s economic future

Standard Bank plc says the easing inflation, interest rate cuts, improved fuel supplies and better food availability are bolstering optimism for the country’s economic recovery and strengthening financial sector performance.

Speaking during the Malawi Stock Exchange (MSE)-listed bank’s 28th Annual General Meeting (AGM) in Blantyre yesterday, Standard Bank plc chief executive officer Phillip Madinga said the combination of these developments is expected to improve business conditions, ease pressure on households and strengthen credit growth in the economy.

Madinga: Falling inflation will be key. | Nation

He said falling inflation rate, which has eased to 23.4 percent in May, will be central to driving monetary policy easing and reducing the cost of borrowing.

“As inflation comes down, the policy rate comes down and as that happens, lending rates also come down,” said Madinga.

He said this environment is expected to stimulate credit demand from households and businesses, supporting private sector growth and broader economic recovery.

Madinga also highlighted improving fuel availability and better food supply as additional positive developments that are easing pressure on consumers and businesses.

He said these supply-side improvements, combined with easing inflation, are helping to stabilise economic conditions and improve overall business confidence.

During the meeting, Standard Bank plc interim board chairperson Alex Mkandawire announced a profit after tax of K122 billion in 2025, representing a 41 percent increase from the previous year’s K118 billion.

He said the results reflect resilience in a challenging operating environment and strong execution of the Malawi Stock Exchange-listed bank’s strategy, despite ongoing macroeconomic pressures.

Mkandawire said the bank continues to invest in strengthening its balance sheet, digital transformation and customer service, which supported sustained growth.

Minority Shareholders Association of Listed Companies secretary general Frank Harawa, in an interview after the AGM, said they are satisfied with the performance of bank, describing its financial results as strong despite economic challenges.

He said the banking sector has faced risks linked to debt restructuring, but noted that Standard Bank plc and other lenders acted prudently by building provisions early.

“There were some challenges to do with restructuring of debts, which has affected most of the banks, including Standard Bank. But Standard Bank was prudent enough that they began providing for this some months ago,” he said.

In the financial statement, Standard Bank said during the year under review, net interest income grew by 47 percent year-on-year, driven 31 percent growth in loans and advances to customers and 63 percent growth financial investments.

Standard Bank plc is one of the five banks listed on the 16-counter MSE. The others are FDH Bank plc, National Bank of Malawi plc, NBS Bank plc and FMB Capital Holdings plc, the parent compnay of First Capital Bank.

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