Malawi Stock Exchange (MSE)‑listed companies posted a combined profit of K1.5 trillion in 2025, almost doubling the K795 billion recorded the previous year, signalling resilience of the firms.
Money market analysts have since described the performance as positive despite profitability remaining heavily concentrated in the banking sector.
All the 16 listed firms reported profit growth, with five banks, FDH Bank plc, National Bank of Malawi (NBM) plc, NBS Bank plc, Standard Bank plc and FMB Capital Holdings Limited plc, the parent company of First Capital Bank accounting for K818 billion, up from K452 billion in 2024, representing 52.7 percent of the total profit of listed firms.
The least profitable bank earned K121.6 billion, more than the combined K119 billion profit of companies in telecommunications and property sectors.
In an interview on Sunday, Stockbrokers Malawi Limited equity investment analyst Kondwani Makwakwa said the results reflected resilience, noting that banks benefited from high interest rates, loan income and government securities.
“In difficult economic conditions, banks usually perform better than many other sectors,” he said.
Makwakwa observed varying performances across all industries as banks recorded strong profits while some non-financial companies faced challenges such as foreign exchange shortages, high import costs and reduced consumer spending power.
He said: “The telecommunications and the consumer goods sector remained relatively stable because people continue to need those services and products.
“On the other hand, manufacturing and import-dependent companies were more affected by rising costs and foreign exchange problems.”
In a separate interview, financial market analyst Brian Kampanje cautioned that banking dominance could ease in 2026 as government borrowing falls and interest rates decline.
“The banking sector benefitted from the high domestic sovereign debt, but the windfall opportunities that inflated local domestic debt are long gone,” he said.
Over the past five months, government has eased its domestic borrowing through Treasury Bills (T-bills), resulting in declining lending rates in commercial banks.
Stock market investor Purity Chitalo, while describing the listed firms’ performance as exceptional, predicted slower growth this year, though telecommunications will remain strong supported by rising data usage and mobile money.
He said that overall, the MSE is expected to remain profitable in 2026, though growth will likely slow from the exceptional 2025 levels.
“Insurance is also expected to post steady, but modest gains while manufacturing and hospitality recovery will largely depend on forex availability, energy stability, tourism and fuel supply,” said Chitalo.
MSE chief executive officer John Kamanga said profitable firms have better valuations and it becomes easier to raise capital and pursue expansion.
“Doubling profitability is also a signal of corporate sector resilience where these companies are able to hedge against inflation, foreign exchange volatility and policy uncertainty,” he sad.
Kamanga said this is also a reflection of good corporate governance and risk management improvements.
MSE was Africa’s best‑performing bourse in 2025, with a return of 247 percent as market capitalisation surged from K9 trillion in 2024 to K33 trillion.
