Table of Contents
Key Points
- FDH Bank posted $34.7 million profit in H1 2025, up 116% from last year, driven by loan growth and strong interest income.
- Non-interest income rose 75% on trade finance, international transactions, and investment banking, strengthening FDH’s revenue diversification strategy.
- Total assets climbed 54% to $727.27 million under William Mpinganjira’s leadership, fueled by loan expansion and government securities.
FDH Bank, a wholly owned subsidiary of FDH Financial Holdings Limited and founded by Malawian billionaire Thom Mpinganjira, reported a strong first half in 2025, with profits nearly doubling to about $35 million, up from less than $20 million over the same period last year.
The bank attributed the growth to higher interest income and increased lending activity. Net interest income rose 92 percent, supported by a 62 percent expansion in its loan book and stronger returns from other interest-bearing assets. Non-interest income also grew 75 percent, reflecting solid performance in transactional banking, trade finance, and investment banking.
Profit rises on stronger interest income and growing loan portfolio
According to its first-half disclosure, FDH Bank reported a net profit of MWK60.28 billion ($34.8 million), a 115.77 percent increase from MWK27.94 billion ($16.13 million) a year earlier. Net interest income surged to MWK89.78 billion ($51.82 million), while total interest income nearly doubled to MWK119.38 billion ($68.8 million).
Non-interest income expanded to MWK53.44 billion ($30.85 million), buoyed by increased international trade and transactional activity. Operating costs rose 43 percent to MWK43.09 billion ($24.87 million), mainly from inflation and investment in service channels. Still, the cost-to-income ratio fell to 30 percent from 39 percent, underscoring efficiency gains.
Expansion strategy and dividend cut
The bank is pursuing regional growth through its pending acquisition of a 98.87 percent stake in Ecobank Mozambique SA from Ecobank Transnational Incorporated. The deal, cleared by regulators and set to close in 2025, will expand FDH’s footprint in Southern Africa and diversify revenue streams.
FDH also declared interim dividend of MWK7.04 billion ($4.06 million), which is MWK1.02 ($0.0006) per share, down 46 percent from a year earlier. Management said the cut was a deliberate move to preserve capital for expansion and maintain a solid buffer. The payout will be made on Sept. 4 to shareholders on record as of Aug. 29.
Mpinganjira family leadership
Founded in 2008, FDH Bank has become a top player in Malawi’s financial sector. After Thom Mpinganjira stepped down in 2020 following a bribery scandal tied to the 2019 presidential election, his son, William Mpinganjira, assumed leadership of FDH Financial Holdings.
Under William’s leadership, total assets rose 53.73 percent to MWK1.26 trillion ($727.27 million) at the end of June, up from MWK817.19 billion ($471.74 million) a year earlier. Growth was fueled by a larger loan book and increased holdings of government securities.
FDH expects Malawi’s inflation to ease to around 27 percent–28 percent, down from 32.2 percent last year, helped by slowing food prices. The kwacha is projected to stay stable against the U.S. dollar, though September 16, 2025’s general elections may pressure the currency. FDH’s expanding asset base and consistent profitability are reinforcing investor confidence, positioning the bank for long-term stability and regional leadership.
