The Reserve Bank of Malawi (RBM) profit almost doubled to K618 billion in 2025 from K347 billion the year before while the central bank’s foreign exchange revaluation losses remained moderate due to exchange rate stability, financial results show.
But economic analysts have described the profitability as a complicated matter, saying that it should only make a profit for self-sustainability as it does not exist to make profit.
According to published financial results, the central bank’s profit recorded at K618 billion in 2025, jumped from K347 billion in 2024 from a loss of K539 billion in 2023.
During the review period, foreign exchange losses moderated to K46 billionin 2025 from K48 billion in 2024 and K708 billion in 2023.
Jointly signed by RBM Governor and chairperson George Partridge and chairperson of audit committee Andy Kulugomba, the results show that RBM’s assets grew by 22.7 percent to K6.6 trillion from K5.1 trillion while profit before foreign exchange revaluations was recorded at K665 billion from K396 billion in 2024.
Among others, RBM indicated that out of the said profit, K65 billion, a rise from the previous year’s K47 billion, has been transferred to the General Reserve Fund, with no additional capital was injected in the Deposit Insurance Corporation while a significant amount will be used to settle promissory notes that Treasury issued to bailout the bank from its 2023 losses.
Reads part of the results: “The net profit shall be used to repay such outstanding advances or redeem the amounts of the promissory notes.
“In view of this, the appropriation of net profit to the government shall first be applied toward full redemption of outstanding promissory notes amounting to K326 billion [2024: K600 billion] and the balance of K274 billion is to be paid as dividend to Malawi Government in the government’s fiscal year ending 31 March 2027.”
The promissory notes were issued to bailout RBM in 2023 when it registered a K708 billion foreign exchange revaluation losses due to a 44 percent devaluation of the kwacha, which resulted in the central bank posting a K539 billion loss that year.
In an interview on Tuesday, financial expert Brian Kampanje said RBM should only make profit for self-sustainability to cover its expenses, including capital expenditures obligations without over reliance from the Treasury.
“Beyond that, profit concept has little relevance on the management’s prudence and stewardship abilities as it does not exist to make profit.”
Consumers Association of Malawi executive director John Kapito described RBM’s profit as huge, considering the harsh economic environment that rocked the country in 2025 and affected most production of most companies.
He said: “Financial institutions such as the RBM are making huge profits from an environment that is completely suffocating industries.
“Small and medium enterprises are collapsing because they can’t survive the high interests and the high taxes.”
Business Partners International country manager Bond Mtembezeka said the central bank remains exposed to foreign exchange rate shocks because of its role of building reserves, which exposes it to foreign liabilities.
RBM profitability comes after five commercial banks listed on the Malawi Stock Exchange also posted K724.5 billion cumulative net profit in 2025, maximising on interest income amid elevated interest rates and high domestic borrowing by government.
Published financial results show that the five banks; FDH Bank, Standard Bank, NBS Bank plc, National Bank of Malawi plc and First Capital Bank, a subsidiary of FMB Capital Holdings plc, posted K147.8 billion, K121.7 billion, K150.42 billion, K197 billion and K107.5 billion profit, in that order almost doubling the K384.46 billion 2024 profit.
This performance is coming at a time the banks’ balance sheets are showing that the sector remained resilient up to the third quarter of 2025, maintaining adequate capital, satisfactory earnings, sufficient liquidity, improved asset quality and growth.
