Local banks thrive in 2022

Listed banks are expecting significant profit increases in 2022 –affirming the already established notion of the banking sector’s supernormal profits.

In trading statements ahead of the release of the 2022 financial statements, the banks project hefty profits of at least 30 % higher than in 2021.

This comes at a time other production sectors like telecommunications, manufacturing and property have been affected by the worsening economic situation.

For instance, NBS Bank expects a 110 % profit increase while FMB Capital Holdings and National Bank are projecting a 30 % rise.

In 2021, National Bank of Malawi’s profit was 34 billion kwacha while FMB Capital Holdings and NBS Bank recorded 21.8 billion and 7.6 billion kwacha respectively.

Consumers and analysts have been questioning commercial banks’ profitability, which does not reflect to economic realities where real sector players are suffering.

Recently, Malawi University of Business and Applied Sciences (MUBAS) economics professor Betchani Tchereni attributed this to the government’s borrowing.