FDH Financial Holdings Limited, the parent company of FDH Bank, has said it is optimistic about future business prospects of the bank following its return to profitability since January 2017.
In a statement on Wednesday, FDH Financial Holdings Limited group chief executive officer Thomson Mpinganjira said this follows the completion of the integration, stabilisation and optimisation processes after the merger with Malawi Savings Bank (MSB), previously wholly-owned government bank.
“Additionally, the bank continues to innovate and introduce new product offerings supported by the state-of-the-art Temenos T24 core banking system which was implemented in 2016. The bank also continues to expand its footprint and upgrade its existing network and this has seen the opening of a new service centre in Balaka in June 2017,” he said.
In July 2015, FDH Financial Holdings bought 80 percent stake in MSB, which included five percent for the bank’s employees. The remaining 20 percent stake is in government hands.
Mpinganjira said the parent company has injected a total of K9.7 billion in the first and second phases of recapitalisation and is now compliant with the Basel II, the second of Basel accords on bank regulations, and Reserve Bank of Malawi (RBM) requirements as the capital adequacy ratios are now above the minimum regulatory requirements.
He said the bank has now fulfilled all post-completion undertakings in the share sale, purchase and investment agreement, which was signed with the Malawi Government through the Public Private Partnership Commission (PPPC) in 2015.