By Chisomo Phiri
BLANTYRE-(MaraviPost)-The country’s leading investment bank CDH Investment Bank has reported a record profit after tax of K23.534 billion for the fiscal year ending December 31, 2024, marking a significant 111% increase over the K11.141 billion earned in 2023.
The audited financial results, released today, highlight substantial growth across various key performance indicators.
According to the results,the bank’s total assets expanded by 72% during the period, reaching K536 billion from K311 billion.
Customer deposits grew by 27%, and loans and advances increased by 28%.
Investment funds and financial assets experienced exceptional growth, increasing by 161% and 160%, respectively.
Net interest income doubled (100% increase), while non-interest income saw a 36% rise, reaching K15.8 billion.
Overall net revenue climbed by 76%.
Reads the financial results report in part:”The strong performance underscores CDH’s successful strategy of integrating investment banking with traditional commercial activities to deliver value to stakeholders, resulting in a 52% return on shareholders’ equity.
“While operating expenses rose by 40% year-on-year, the cost-to-income ratio improved to 39% from 43% in the previous year.”
The report further notes Malawi’s projected 4% economic growth in 2025, driven by improved food security, enhanced export earnings, and increased investment in agriculture, mining, and tourism.
However, it says this optimistic forecast faces potential headwinds.
Further reads the report:”While inflation and interest rates are expected to remain stable, several factors could disrupt the trajectory.
“Increased government spending, potential adverse weather events, and the success of the IMF-backed Extended Credit Facility (ECF) renewal—which could affect foreign exchange flows and critical import availability—pose significant risks.
“The global economic climate, characterized by potential trade protectionism, geopolitical tensions, and a possible scaling back of US aid, further complicates the outlook.”
The impressive results were endorsed by the bank’s leadership, including Board Chairperson Franklin Kennedy, Board Audit Committee Chairperson Sydney Chikoti, Chief Executive Officer (CEO ) and Managing Director Thoko Mkavea, and Chief Finance Officer Kelvin Mkulichi.
The bank has however,expressed gratitude to all its stakeholders, including clients, shareholders, the Malawian government, the Reserve Bank of Malawi(RBM ), the media, and partner banks, for their support in achieving the successful year.
