FDH Bank’s profit after tax up 97% to K23bn
FDH Bank plc has reported a 97 percent rise in after-tax profit for the year ended December 31 2022 pushed up by the increase in interest and non-interest income as well as digital revenue.
Published financial results show that FDH Bank plc has posted a profit after-tax of K22.9 billion from the previous year’s K11.6 billion amid a tough operating environment characterised by the cost of living crisis, rising inflation rate and the impact of the 25 percent devaluation of the kwacha affected in May 2022.
During the year, net interest income grew by 47 percent from K25.4 billion to K37.3 billion on the back of the increase in interest bearing assets, according to published financial results.
Mseka: Co-signed the financial results
Non-interest income jumped by 74 percent from K18.6 billion to K32.5 billion largely due to the picking up of business after the Covid-19 pandemic restrictions and lockdowns were lifted in most of the trading partner countries.
Reads the statement jointly signed by FDH Bank plc board chairperson Charity Mseka and other directors: “As a result, this registered significant growth in our transaction banking space.
“However, this growth was to a certain extent affected by supply chain challenges caused by the Russia-Ukraine war which affected some strategic imports and raw materials for local businesses.”
During the year, the results show that FDH Bank plc assets grew by 42 percent from K305.9 billion to K434.5 billion buoyed by the increase in government securities by 96 percent, placement with other banks was at 72 percent while the loan booked remained flat.
The bank will pay out a total dividend of K15.1 billion for 2022, an equivalent of K2.19 per share.
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