FDH Bank records 55% profit increase after Tax – Capital Radio Malawi
9 February, 2025

FDH Bank records 55% profit increase after Tax

The Malawi Stock Exchange (MSE) listed, FDH Bank has experienced a substantial profit boost of 55% up as it registers K35.6 billion profit after Tax from K22.9 billion profit achieved over a similar period in 2022.

During the period under review, the high-street bank witnessed a notable 60% increase in net interest income amounting to K59.8 billion alongside a slight 2% decline in interest expenses to K13.5 billion, as indicated in the financial summary jointly endorsed by the bank’s board chairperson Charity Mseka, managing director Noel Mkulichi and audit and finance committee chairperson Ulemu Katunga.

“Non-interest income increased by 33% mainly due to the picking up of business as more customers embrace transacting on digital platforms. International trade and local business transaction volumes also picked up in line with the Bank’s strategy. The increase in net interest income and non-interest income resulted in total income growth of 47%,” reads part of the statement.

The report further added; “The bank witnessed a notable 60% increase in net interest income, amounting to K59.8 billion, alongside a slight 2% decline in interest expenses to K13.5 billion. This occurred despite a 35% surge in deposits, rising from K328 billion to K444 billion, primarily due to an enhanced deposit mix.”

The financial statement highlights a 33% rise in non-interest income, largely attributed to increased digital transactions by customers and an uptick in both international trade and local business volumes, aligning with the bank’s strategic objectives.

Despite interest rate hikes during the review period, the bank witnessed a decrease in net impairment charges, thanks to reduced expected credit losses and increased recoveries from bad debts.

In terms of shareholder returns, the bank declared and disbursed dividends totaling K19.6 billion for the year, including a final dividend of K4 billion attributable to 2022 profits.

Looking forward, the bank has since expressed optimism of further growth.

“The Bank will continue to implement the strategic objectives running from 2024 to 2026, which focus on Customer experience, Operational efficiency, People development and Innovation, leveraging on the Bank’s market position, widest distribution network, effective digital platform, brand equity, and strong financial performance,” the statement concluded.

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