Standard Bank plc says it has adopted a cautious stance amid economic uncertainty, opting not to declare an interim dividend despite posting a 14 percent rise in half-year profit to K48 billion.
The Malawi Stock Exchange (MSE)-listed bank’s chief finance and value officer John Mhone said this yesterday in Lilongwe at the bank’s Investor Day where it presented its financial performance for the half-year ended June 30 2025.
The decision has, however, attracted mixed reactions from stock market investors and Minority Shareholders Association of Listed Companies who think the K48 billion profit was enough to declare dividend. But they believe shareholders will still benefit from capital gains on MSE.
the Investor Day in Lilongwe yesterday .| George Lumwira
Mhone justified the decision, saying this is forward-looking as the bank continues to monitor the economic situation and will declare dividend when macroeconomic conditions improve.
He said: “This is especially important due to ongoing volatility in the operating environment. We have adopted a risk management approach that positions Standard Bank 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.”
Standard Bank’s performance in the half-year was achieved despite prevailing hostile economic environment characterised by high inflation rate at 27.3 percent, cost of living crisis and foreign currency supply-demand imbalances, among others.
“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.
On her part, the bank’s head of personal and private banking Charity Mughogho said they remain committed to supporting the country’s economic growth and development in line with its purpose.
She emphasised that the bank, which has emerged as the most valuable company on the 16-counter MSE with a market capitalisation of K7.6 trillion, is taking a long-term step 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,” said Mughogho.
She said Standard Bank remains committed to supporting the country’s economic growth and development in line with its purpose.
But in a separate interview, Minority Shareholders Association of Listed Companies secretary general Frank Harawa said the decision to forgo dividend payment is a concern, especially for its members who rely on getting dividend pay-outs as their main source of income.
“This is negative to shareholders because K48 billion profit is quite significant. However Standard Bank shareholders have already benefited in form of capital gains because it is the highest valued stock on MSE and in that context, they already got their compensation,” he said.
Stock market investor and financial expert Brian Kampanje said although the bank has not declared dividend, the huge jump of share value from K2 400 after its share split in July to K6 497 as of yesterday represented a massive capital gain to shareholders.
“The massive share capital gains realised by the shareholders after share split in July 2025, leading to substantial rise in the market share price should make shareholders contented and not worried of the absence of the interim dividend after the release of the interim financial statements,” he said.
The bank’s financial results show that total revenue increased by 37 percent, with net interest income growing by 44 percent, supported by a 34 percent growth in loans and advances to customers. The bank also registered a 65 percent increase in financial investments.
The Standard Bank also acknowledged the impact of foreign currency shortages on its operations, resulting in reduced trading volumes and lower net fees and commissions.
Standard Bank is one of the five banks listed on MSE.
The others are FDH Bank plc, National Bank of Malawi plc, NBS Bank plc and FMB Capital Holdings Limited plc, whose subsidiary is First Capital Bank.
