FDH Financial Holdings Limited, the parent company of FDH Bank, has posted a half-year profit of K5.87 billion, an 18 percent increase from the prior year’s K4.96 billion.
In its published financial results for the year-ended June 30 2020 jointly signed by the group’s acting chief executive officer George Chitera, board chairperson Noel Nkulichi and chairperson of audit and finance Ulemu Katunga said total income grew by 13 percent from K18.3 billion to K20.6 billion boosted by FDH Bank.
During the review period, net interest income jumped by 73 percent due to the growth of the asset book by subsidiaries FDH Bank and First Discount House compared to the same period last year.
“The group continues to invest in customer-centric financial solutions and human resource development,” reads the statement in part.
In the year under review, operating costs grew by 13 percent year-on-year, but the group says it will continue to put more focus on effective cost management to bring down the cost to income ratio.
The figures show that total assets increased by 17 percent to K254.1 billion from K218.1 billion in December 2019 mainly due to the group’s drive to grow the asset book while diversifying the portfolio.
During the review period, customers’ deposits increased by 22 percent from K133 billion as at December 31 2019 to K162.7 billion as at June 30 2020.
“The increase in customer deposits is in line with the group’s strategy of focusing on growing demand deposits through the digital service delivery channels and the bank’s wide branch network,” reads the statement.
The group’s 2020 half-year performance was not spared from the effects of Covid-19 pandemic as economic activities slowed down.
“The slowing down in business was also contributed by the lockdowns in the countries where there are trading partners for the local businesses,” reads the statement, adding that this slowed down credit growth and non-funded business growth as the number of customer transactions went down.
Looking into the future, the group, whose subsidiary FDH Bank is expected to list on Malawi Stock Exchange on August 3, expects inflation to average around 9.4 percent and the kwacha/dollar exchange rate to average K750.
Apart from FDH Bank and First Discount House, FDH Financial Holdings Limited also owns FDH Money Bureau Limited.