FDH Bank profit after tax 97% up
Leading home-grown commercial bank, FDH Bank Plc has seen a growth in their profit after-tax by 97 % in the year ending December 31, 2022 and has attributed the surge to business picking up following the lifting of Covid-19 restrictions and lockdowns in most countries in the world.
According to a financial statement the bank has released, jointly signed by its board chairperson Charity Mseka and managing director Noel Mkulichi, the profit after-tax for the year 2022 is K22.9 billion up from K11.6 billion in the previous year.
The growth has been attributed to increase in net interest and non-interest income after business started picking up following the lifting of the COVID-19 restrictions and lockdowns in most countries.
“As a result, this registered significant growth in our transactional banking space. However, this growth was to a certain extent affected by the supply chain challenges caused by the Russia/Ukraine war which affected some strategic imports and raw materials for local businesses.”
“Another contributing factor was the increase in digital revenue resulting from the growth in digital transaction volumes on the various digital platforms. The increase in net interest income and non-interest income resulted in total income growth of 58%.”
“Operating expenses grew by 19% when compared to the same period last year notwithstanding the high inflation of around 21% and the 25% depreciation of the Kwacha. The Bank continues to put more focus on effective cost management to continue bringing down the cost to income ratio.”
“Total assets grew by 42% from December 2021 mainly emanating from the increase in Government Securities by 96%, placement with other banks was at 72% while the Loan book remained almost flat. The growth in assets was supported by the growth in customer deposits by 69% from MK193 billion to K328 billion,” reads the statement in part.
Meanwhile, the bank will give a total dividend of K15.1 billion which represents K2.19 per share, while projecting challenging year in 2023 due to the effects of the Russia-Ukraine war on foreign currency shortage, and Cyclone Freddy which will affect agricultural produce in the Southern Region districts of the country.
“Economic growth is estimated at 2.6% in 2023, from 1.7% in 2022. However, it is yet to be determined what level of impact Cyclone Freddy will have on the country’s growth prospects. Annual inflation is anticipated to average 18.2% in 2023 (2022: 21.0%), with the local currency continuing to depreciate against the major trading currencies as a result of a significant negative trade balance.”
“The Bank continues to implement the strategic objectives running to 2024, leveraging on our market position, wide distribution network, effective digital platform, brand equity, and strong financial performance.”
“The Bank remains committed to creating value to our customers, shareholders and other stakeholders by focusing on growing revenue and market share, reducing operating cost, creating highly engaged employees and contributing significantly to the creation of an inclusive, diverse and sustainable society,” reads part of the statement.Follow and Subscribe Nyasa TV :