FDH Financial Holdings, one of the country’s financial services group, has registered a profit after tax of K876 million (US$2 126 213.6) in the half year ended June 2014 from K221 million (US$536 407.7) the prior period, according to financial results.
The financial results are on the back of a host of factors, including an uncertain economic and business operating environment, a slowdown in economic activity, high interest rates, volatile exchange rate and regulatory changes, according to the group’s chief executive officer Thom Mpinganjira.
“Our results reflect that our diversified business shows good growth and resilience despite the tough, uncertain and challenging operating business and economic climate,” he said
FDH Bank, a subsidiary of the group, also delivered “strong results” against this challenging operating environment, with figures showing that in the first half, the bank grew its revenues year on year by 84 percent, with profit after-tax growing by 206 percent at K888 million (US$2 155 339.8) from K290 million (US$703 883.5) same period last year.
The six-year- old FDH Bank is among the top five banks with respect to market share for deposits, according to the Reserve Bank of Malawi (RBM).
“The bank will continue to exploit the various opportunities on the market as they
arise and is committed to continue providing superior services to its clients while remaining focused on risk, capital and management,” said the bank’s managing director Phillip Madinga.
First Discount House, the only discount House in the country and a subsidiary of the group, continued to display its strong performance, according to the financial results.
During the first six months, the First Discount House grew its total revenues by 67 percent, with a profit after-tax of K389 million, a 76 percent growth over June 2013 results.
“Despite a continuously changing environment, our customer centric approach has enabled us to adapt, innovate and introduce new products and services on the market”, said Mike Chiwalo, managing director of First Discount House.
The financial services group, according Mpinganjira, is geared for more positive results in the second half and owes its success to its customers, shareholders, management and staff, as well as the Malawi Government and the RBM.
“With the elections behind us, we anticipate some improvement in the operating environment in the second half with a few challenges from the first half expected to continue towards the end of 2014.
“Interest rates are now on a downward trend with inflation following a similar trend.
We therefore expect performance to be positive in the second half,” said Mpinganjira.