CDH Investment Bank registers 120 percent profit
Published on August 21, 2025 at 7:21 AM by Robert Ngwira
Despite the economic downturn the country is going through as a result of forex scarcity, CDH Investment Bank has registered a remarkable increase in profit after tax by 120 percent for the half year ended 30 June 2025.
In a statement made available to this publication, the bank’s profit has jumped to MK18.3 billion from K8.3 billion recorded during the same period in 2024.
The bank has attributed the rise to the expansion of the average interest-earning assets, with notable increases across the customer loans and advances portfolios and coupled with improved fixed income trading activities and margins.
It is said that the strong performance was driven by significant growth in both net interest income and non-interest income, which rose by 56% and 171% respectively.
“Total assets grew by 60%, from K476.8 billion in June 2024 to K764.0 billion in June 2025.
“This was largely driven by a 71% increase in financial assets at fair value through profit or loss, a 68% rise in investments in fixed income securities at amortized cost, and a 32% increase in loans and advances to customers. These gains were supported by a 58% growth in investment funds and an 80% increase in customer deposits,” reads in part the statement.
The bank also reported a customer loans-to-deposits ratio of 51%, while the total loans-to-funding base ratio was 77%.
Added the statement: “Liquidity levels remained strong, highlighted by a Liquidity Coverage ratio of 205%. Shareholders’ equity increased by 68% to K54 billion. The strengthened capital position was driven by higher retained earnings and effective risk-weighted assets management, resulting in a Capital Adequacy Ratio of 24% and Tier 1 Ratio of 24%.”
Commenting on the statement CDH Investment Bank Chief Executive Officer and Managing Director Thoko Mkavea said the bank’s strategic focus will remain strengthening investment in staff development to build a future-ready workforce.
“The bank will maintain a cautious yet proactive approach, prioritising robust risk management and operational excellence.
“Its strategic focus will remain strengthening investment in staff development to build a future-ready workforce, expanding digital banking and fintech capabilities to enhance customer experience while deepening client relationships through customized financial solutions, its forte in the financial services sector in Malawi”, he said.
CDH Investment bank opened for business in Malawi on 2nd April 2012 following the successful conversion from Continental Discount House Limited (CDH) which had operated in the financial sector for 14 years since August 1998.
