FDH Bank has posted a K3.4 billion half year profit, just days after announcing that it will be listing on the Malawi Stock Exchange (MSE) next year.
In published financial statements for half year ending 30 June 2019, the bank registered a profit after tax of K3.351 billion against K1.342 billion profit achieved over a similar period last year.
“Total income grew by 13% from K11.28 billion to K14.753 billion. Net interest income has gone down by 9% on the back of the decrease in interest income by 12% following the drop of policy rate early this year. Cost of funding has improved with interest expense going down by 15% as the Bank continues to focus on demand deposits,” reads the statement in part.
Bouyed by the positive performance, the Bank also officially announced that it will be listing within the first half of next year.
“This will be done in fulfillment of one of the conditions set when FDH Financial Holdings acquired MSB Bank in 2015. Having cleaned up the balance sheet and achieved sustainability, time has come to fulfill this important post-acquisition requirement. FDH bank will therefore give an opportunity to all Malawians to invest in this home bred and home grown bank,” reads the statement.
The statement signed by Board Chairman Arthur Oginga, Managing Director Eric Outtarra, Chief Finance Officer George Chitera and Chairman of Finance and Audit Committee of the board Dr Ulemu Katunga also said customer deposits increased by 21% from K115 billion to K140 billion.
“The increase in customer deposits is in line with the bank’s strategy focusing on growing demand deposits through its wide branch network and digital service delivery channels,” reads the statement.
The bank also said it continued to invest in digital products, infrastructure, human capacity development and innovative customer centric solutions as the focus is to improve customer experience as well as diversifying sources of non-interest income.
Looking ahead, the bank says it expects the stable economic environment to continue notwithstanding the election standoff with inflation averaging around 9% adding that it will continue opening more service centres across the country.
“This year the bank has opened new outlets in Neno, Mulanje, Namwera, Mzimba and Chitipa, moving from Post Office premises with the idea of improving customer experience. The bank also added Goliati Service Centre in Thyolo which opened in May this year. By the end of July 2019, the new Jenda Service Centre would have opened its doors,” reads the statement in part