Rasik Kantaria’s FMB Capital slips below $1 billion

Just weeks after crossing a historic threshold, Kenyan billionaire banker Rasik Kantaria has seen the value of his stake in FMB Capital Holdings Plc slip back below the $1 billion mark, underscoring how quickly market sentiment can shift even after a landmark run. 

Kantaria, who became Kenya’s first dollar billionaire on paper late last year, was lifted there by a surge in shares of the Mauritius-based financial services group on the Malawi Stock Exchange. That rally has since cooled, pulling his fortune lower as investors reassess the pace of gains and wait for fresh financial disclosures.

FMB Capital shares peak, then pullback

FMB Capital’s stock climbed sharply in November 2025, rising to an all-time high of MWK3,646.98 ($2.1) per share. This surge propelled the lender’s market cap above $5 billion and briefly took the market value of Kantaria’s stake past $1 billion.

The surge was fueled by robust interim earnings and heavy investor buying following a sustained profit run. But as the year drew to a close, the tone changed. Profit-taking set in, and unease grew as the market awaited the group’s nine-month results.

The pullback that began late last year carried into early 2026. From the start of the year, the shares have recorded a single-digit decline, reflecting softer sentiment as the market digests last year’s gains. With no new financial update since August, some investors have chosen to sit on the sidelines, waiting for clearer signals before committing fresh capital.

FMB stock peaks, Kantaria stake falls

At the peak of the rally, the numbers told a compelling story. For the six months ended June 30, 2025, FMB Capital reported a 56 percent jump in profit after tax to $72.9 million. Total operating income rose 38 percent to $176.5 million, supported by growth across its banking operations. The balance sheet also strengthened. Total assets climbed to $2.33 billion, up from $1.74 billion a year earlier, while equity expanded to $371.8 million, bolstered by earnings even after dividend payouts. Those results helped fuel the surge that carried the stock to record highs.

Since then, the share price has declined to MWK3,125 ($1.8), trimming FMB Capital’s market cap to $4.43 billion. The slide has had a direct impact on Kantaria’s wealth. His indirect 21.36 percent stake, held through Prime Bank Limited and Prime Capital Holdings, is now valued at MWK1.64 trillion ($946 million). At the height of the rally, that holding was worth more than $1.1 billion. Much of the paper gain accumulated during the November surge has been erased.

FMB Capital grows regionally, with steady earnings growth

Kantaria’s journey at FMB Capital closely mirrors its beginnings. He co-founded the lender in 1995 with Hitesh Anadkat, starting as First Merchant Bank in Blantyre. Over three decades, the business has grown beyond its roots into FMB Capital Holdings, with operations spanning Malawi, Mozambique, Zimbabwe, Zambia and Botswana. The group has built its reputation on regional banking, serving both corporate and retail clients across Southern Africa.

Despite the recent market pressure, the underlying performance of the business remains strong by most measures. Over the trailing 12 months, FMB Capital delivered a 42 percent return on average equity, a level that places it among the more profitable lenders in the region. Profit growth has been reported across most operating units, reflecting the breadth of its footprint. For the full year 2024, profit rose 13 percent to $103.5 million, extending a run of steady earnings even as economic conditions varied across its markets.

For now, investors appear focused less on past results and more on what comes next. Improved disclosure and clearer communication have become central concerns, with many in the market looking for updated financials to help anchor expectations after a sharp run-up in the share price. How quickly confidence settles may determine whether the stock finds firmer ground—and whether Kantaria’s stake can again push comfortably above the $1 billion line.