FDH Bank plc has registered a profit after tax of K4.55 billion in 2020, up from K3.223 billion achieved over a similar period in 2020.
In its unaudited summary of consolidated and separate financial results for the half-year ended June 30 2021, the Malawi Stock Exchange listed-bank said its net interest income grew by 70 percent on the back of the increase in the loan book and other interest bearing assets and interest expense which grew by 31 percent, reflecting the growth of the Bank’s deposits.
On the other hand, non-interest income decreased by 18 percent on account of the slowing down of business because of the Covid-19 pandemic.
Non-performing loans ratio stood at 1.24 percent as at 30 June 2021 while customer deposits increasing by 13 percent from K164 billion to K179 billion.
Said the bank in the statement: “The 2021 Covid-19 pandemic had an effect on the half-year performance as economic activities continued to be suppressed as a result of the second wave of infections.
“Travel restrictions and lockdowns in trading partner countries slowed down most of the local businesses. This in turn slowed down the non-funded business growth as the number of customer transactions went down. “
Meanwhile, the bank said it continues to implement the new cycle of strategic objectives running from 2021 to 2024, focusing on leveraging on our market position, widest 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 for sustainable performance and profitability, creating highly engaged employees and contributing significantly to the creation of an inclusive, diverse and sustainable society,” reads the statement in part.
Looking forward, the bank said inflation is expected to remain in single digits averaging around 9.5 percent to the end of 2021 on account of declining food prices on the back of a good harvest.
The bank also anticipates the kwacha and US dollar exchange rate to average K845 in 2021 while the growth domestic product is projected to average between 1.5 percent and 2 percent in 2021.
The bank has since approved an interim dividend of K2.3 billion in respect of 2021 half-year profits representing 33 tambala (K0.33) per share.