LILONGWE-(MaraviPost)-Standard Bank Plc, listed on the Malawi Stock Exchange (MSE), hosted an Investor Day in Lilongwe to present its financial performance for the half-year ended 30 June, 2025.
The briefing provided insights into the Bank’s strategic priorities and operational approach in the context of Malawi’s evolving economic landscape.
During the session, Chief Finance and Value Management Officer, John Mhone, highlighted the Bank’s focus on long-term resilience, noting that its risk management strategy prioritises business continuity and capital adequacy.
“This is especially important due to ongoing volatility in the operating environment. We have adopted a risk management approach that positions Standard Bank Plc well for the remainder of the year. Looking ahead, we remain committed to ensuring that the Bank is well capitalised and able to withstand shocks,” he said.
According to a statement accompanying the first-half financial statements, Standard Bank withstood high inflation and foreign currency supply-demand imbalances to record a Profit after Tax of MWK48.4 billion, an increase of 14 percent over the same period last year.
“Our half-year results demonstrate a focus on financial discipline, effective risk management, and operational efficiency, laying a strong foundation for sustainable growth beyond short-term gains,” said Mhone.
For his part, Chief Executive Phillip Madinga said the Bank remains committed to supporting the country’s economic growth and development in line with its purpose.
He emphasized that Standard Bank, which has emerged as the most valuable company on the MSE with a capitalization above MWK7.6 trillion, is taking a long-term view towards stability and sustainability.
“We understand that the economic environment can be challenging in this period, but we believe that prudent risk management and strategic planning can help mitigate potential risks, while safeguarding capital operations in a manner that helps the Bank withstand shocks, and reduce exposure from any ensuing volatility,” said Madinga.
In its financial statement for the first six months of 2025, Standard Bank stated that it would forgo paying an interim dividend for the period under review, as it continues to monitor the economic situation and declare a dividend when macroeconomic conditions improve.
The Bank said in the statement that despite these challenging economic conditions, it has achieved higher revenue and strengthened its balance sheet.
Total revenue increased by 37 percent year-on-year, with net interest income growing by 44 percent, supported by a 34 per cent growth in loans and advances to customers and a 65 percent increase in financial investments, read the statement.
The Bank also acknowledged the impact of foreign currency shortages on its operations, resulting in reduced trading volumes and lower net fees and commissions.
However, non-interest revenue grew by 21 percent year-on-year, driven by increased transaction volumes and improved trading margins.
Looking ahead, Standard Bank Plc remains cautious in its outlook for the remainder of 2025.
The Bank anticipates continued macroeconomic headwinds, including inflationary pressures from foreign exchange shortages and rising food prices during the lean season.
As the Malawi Government is expected to negotiate a new financing package with the IMF post the general elections date, most macroeconomic variables may move adversely in the last quarter to pave the way for a correction, especially in the money markets.
Despite these challenges, Standard Bank remains focused on maintaining financial resilience, supporting its customers, and delivering sustainable value to shareholders.
