CDH Investment Bank H1profit jumps 53% to K8bn
CDH Investment Bank has reported a 53 percent growth in half-year profit to K8.3 billion driven by growth in net interest and non-interest incomes, financial results show.
The summary of financial results for the six months ending June 30 2024 show that net interest income grew by 53 percent to K15.4 billion from the previous year’s K8.6 billion while non-interest income jumped by 26 percent from K4.2 billion to this year’s K5.3 billion.
In the half-year, the bank’s operating income before impairments on loans and advances grew from K12.9 billion to K20.7 billion, mainly on account of growth in net interest income and non-interest income.
Reads in part the financial results jointly signed by chief executive officer and managing director Thoko Mkavea and chairperson Franklin Kennedy: “Operating expenses grew by 47 percent from K5.1 billion in June 2023 to K7.6 billion in June 2024 largely due to the 44 percent devaluation of the kwacha which happened in November 2023, the impact of which was felt in 2024, and the resultant high inflation impacting on prices of commodities.”
But the bank’s net impairment losses on loans and advances to customers increased to K642.1 million in the half-year from previous half’s K29.8 million following the reclassification of some loan facilities.
The bank’s assets, which grew by 99 percent to K476.8 billion, were supported by the 183 percent growth in investment funds and a 42 percent increase in customer deposits.
“The bank continues to leverage on investment banking solutions to grow commercial banking activities,” reads the statement.
Going forward, the bank expects continued pressure on the kwacha exchange rate as a result of the increasing negative trade balance. However, the bank said it will continue to leverage its unique ability to integrate corporate finance and investment banking services with traditional commercial banking activities to deliver value to its stakeholders, generating high return on shareholder’s equity.
“We will continue to meet our client’s expectations through continuous development of our people, investment in modern technology and investment in strategic alliances.
“We reaffirm our commitment to providing well-researched and innovative financial solutions to all clients. Capital optimisation, cost discipline, asset diversification and effective risk management will remain our pillars for sound financial performance for the bank,” reads the statement.
CDH Investment Bank opened for business on April 2 2012 following the successful conversion from Continental Discount House Limited, which had operated in the financial sector for 14 years since August 1998.
The bank’s unique service proposition is investment banking and corporate financial advisory services to its clients, but it is also a deposit-taking investment bank out of which it creates loans and advances.
