* Focuses on long-term resilience as its risk management strategy prioritises business continuity and capital adequacy
* Looking ahead, we remain committed to ensuring that the Bank is well capitalised and able to withstand shocks
* 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
By Duncan Mlanjira
Due to ongoing volatility in the operating business environment, Standard Bank Plc has adopted a risk management approach that positions it well for the remainder of the year as a commitment to ensure that the bank is well capitalised and able to withstand shocks.
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The Malawi Stock Exchange (MSE)-listed financial institution hosted an Investor Day in Lilongwe to present its financial performance for the half-year ended June 30, 2025 that 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 & 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.
“Looking ahead, we remain committed to ensuring that the Bank is well capitalised and able to withstand shocks,” said Mhone, having presented the first-half financial statements that indicates that it withstood high inflation and foreign currency supply-demand imbalances to record a profit after tax of MWK48.4 billion — an increase of 14% 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,” Mhone said.
John Mhone
As it continues to monitor the country’s economic situation, Standard Bank stated that it would forgo paying an interim dividend for the half year period under review promising to declare a dividend when macroeconomic conditions improve.
The statement indicated that despite the challenging economic conditions, it has achieved higher revenue and strengthened its balance sheet as total revenue increased by 37 % year-on-year, with net interest income growing by 44% —supported by a 34% growth in loans and advances to customers and a 65% increase in financial investments.
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% year-on-year, driven by increased transaction volumes and improved trading margins.
Looking ahead, Standard Bank Plc says it remains cautious in its outlook for the remainder of 2025 while anticipating continued macro-economic headwinds, including inflationary pressures from foreign exchange shortages and rising food prices during the lean season.
As the government is expected to negotiate a new financing package with the International Monetary Fund (IMF) post the general elections date, the bankers says “most macro-economic 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.
Head of Personal & Private Banking, Charity Mughogho says Standard Bank remains committed to supporting the country’s economic growth and development in line with its purpose — while emphasising that the financial institution has emerged as the most valuable company on the MSE with a capitalisation above MWK7.6 trillion.
“This is in line of taking a long-term view towards stability and sustainability,” Mughogho said. “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.”
Of the 16 corporates listed on the MSE, Standard Bank Malawi leads in market capitalisation now standing at MWK7.6 trillion from MK6.6 trillion it recorded three weeks ago after its recent share split on MSE that strengthened it capital market participation by empowering broader financial inclusion.
Standard Bank thus unlocked investment potential for more Malawians across the country after an additional 938,672,648 of its ordinary shares were listed on the Main Board of the Exchange — a 1 for 5 share split transaction with an aim of improving liquidity of the counter — as well as to making its shares affordable to a broader base of investors.
“We remain committed to continue delivering value to our shareholders by offering customers innovative and inclusive products,” said Chief Executive Phillip Madinga on surpassing the K6 trillion since the share split. “We believe in shared prosperity for both customers and investors while managing risk.”
Standard Bank, which was crowned Best Bank and Best Investment Bank in Malawi at the 2025 Euromoney Awards, was also named by the Institute of Internal Auditors of Malawi (IIAM) as the 2025 Internal Audit Month Champions — as well as being recognised by Malawi Revenue Authority (MRA) at its 25th Anniversary for doing business the right way — compliantly, consistently, and excellently.
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