FDH Bank pledges more investment in digital products
FDH Bank has pledged continued investment in digital products and other distribution channels to improve customers’ experience as well as diversifying sources of non-interest income.
In a statement accompanying audited financial results for the year ended December 31 2018 jointly signed by the bank’s managing director Eric Ouattara and board chairperson Arthur Oginga, the bank said notwithstanding the investment in the digital platform, operating expenses grew by 13 percent when compared to the same period last year.
“The bank will continue to put more focus on effective cost management as we continue to bring down the cost to income ratio to market levels,” reads the statement in part, adding that the bank will continue improving and consolidating its non-interest income through its digital offerings and customer centric innovative solutions.
FDH Bank has reported a profit after tax of K5.9 billion for the year ended December 31 2018, a turnaround from a loss after tax of K1 billion reported in the previous financial year.
The financials show that total income grew by 37 percent from K21.2 billion to K29 billion while net interest income remained flat on the back of significant cleaning up of non-performing loan book.
The results show that loans and advances to customers remained flat with new loans replacing the written down book. At the same time, customer deposits remained almost flat, decreasing by 1.6 percent from K114.2 billion to K112.5 billion.
In 2015, FDH Financial Holdings, the parent company of FDH Bank, bought an 80 percent stake in the then Malawi Government wholly-owned Malawi Savings Bank (MSB), which included five percent for the bank’s employees.
Early last year, FDH Bank board approved the disposal of investment in MSB Properties Holdings Limited, which owned MSB Properties Limited to FDH Money Bureau Limited.
This was part of FDH Bank reorganisation to optimise the bank’s capital structure, according to the statement. n
