Financial services group FDH Financial Holdings Limited has reported a 44 percent growth in profit after-tax to K11.3 billion in the year ended December 31 2019 from K7.8 billion the year before.
A published financial statement released yesterday shows that the group’s total income grew by 38 percent from K32.3 billion to K44.6 billion pushed up by good performance in one of its subsidiaries, FDH Bank.
The bank’s profit after-tax for the year ended December 2019 grew by 32 percent to K7.8 billion from the previous year’s K5.9 billion.
The statement says the group’s net interest income grew by 49 percent due to growth in interest earning assets while non-interest income increased by 34 percent due to the increase in revenue from the group’s non-funded income.
Reads in part the statement jointly signed by signed by the group’s board chairperson Noel Mkulichi, Finance and Audit Committee chairperson Ulemu Katunga and acting chief executive officer George Chitera: “Total assets grew by 26 percent mainly emanating from the growth in loans and advances, government securities and growth in plant, property and equipment and other assets driven by group’s investment in digital products.”
The statement said bills and buy backs and loans grew by 20 percent from K45.6 billion in 2018 to K54.5 billion in 2019 and treasury and Reserve Bank of Malawi bills increased by 53 percent from the previous year balance of K44.9 billion to K68.6 billion in 2019.
During the period, customers deposits in FDH Bank increased by 20 percent from K111 billion to K133.1 billion.
The group’s results were achieved in an environment of inflation that was relatively stable averaging 9.4 percent, a 0.7 percent depreciation of the kwacha against the dollar, a policy of 13.5 percent and an all-type Treasury bill rate declining to 8.04 percent in 2019.
Going forward, the group is banking on the expected low inflation rate which will average around eight percent this year and a stable kwacha/dollar exchange rate.
The group says its focus is to continue improving and consolidating its non-interest income through its customer-centric innovative solutions.
It will also continue to manage credit risk and build on the already existing strong credit processes.
Besides FDH Bank, other subsidiaries of the group are First Discount House and FDH Money Bureau. FDH Bank is expected to list on the Malawi Stock Exchange by June this year.