NKULICHI—Focus is to continue improving
Profit after tax for conglomerate FDH Financial Holdings went up by 44 percent in the year ended December 31 2019 to K11.3 billion from K7.8 billion recorded in the preceding year.
In a statement issued yesterday, the group says total income grew by 38 percent from K32.3 billion to K44.6 billion.
The statement was signed by FDH Financial Holdings Limited Board Chairperson, Noel Nkulichi, Chairman of the Finance and Audit Committee, Ulemu Katunga, and Acting Chief Executive Officer, George Chitera.
It says net interest income grew by 49 percent, emanating from the growth in interest earning assets while non-interest income grew by 34 percent due to the increase in revenue from the group’s non-funded income.
The group’s 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.
Customer-deposits increased by 20 percent from K111.0 billion to K133.1 billion.
“The group’s focus is to continue improving and consolidating its non-interest income through its customer-centric innovative solutions. Additionally, the group will continue to prudently manage credit risk and build on the already existing strong credit processes,” reads part of the statement Commenting on the operating environment, the group said there is stability in key macroeconomic fundamentals.
During the year, headline inflation remained relatively stable, averaging 9.4 percent, the kwacha had a year-on-year depreciation of 0.7 percent against the dollar and the policy rate went down to 12.5 percent from 2018’s closing position of 18 percent.
Going forward, inflation is expected to average around 8 percent.
The group also anticipate the kwacha/US Dollar to remain stable in 2020 and Malawi GDP growth rate is projected to average between 5 percent and 6 percent, according to the Reserve Bank of Malawi.
Meanwhile, the firm says preparations to list one of its subsidiaries, FDH Bank, on the Malawi Stock Exchange in 2020 are on track and progressing very well.
“FDH Bank’s listing will give a chance to the public and all Malawians to invest in the home grown and leading digital bank,” reads the statement.
Other subsidiaries include First Discount House and FDH Money Bureau.
Today’s top business story: Top Commercial Banks In Malawi
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