FDH Bank approves K7bn final dividend for 2023
Highlighted the importance of dividends -Mseka
FDH Bank plc has announced the approval of a final dividend of K7.039 billion for 2023, underscoring its commitment to delivering substantial returns to shareholders.
This decision was made at the bank’s 17th Annual General Meeting in Blantyre on Friday.
The approval of this final dividend brings the total dividends distributed from 2023 profits to K22.635 billion.
Earlier in 2023, the bank had paid out a first interim dividend of K9.04 billion in August and a second interim dividend of K6.556 billion in December.
This significant dividend payout reflects FDH Bank’s impressive financial performance in 2023 where it posted a tax profit of K35.647 billion, a 55 percent increase from the K22.932 billion recorded in 2022.
The bank’s chairperson Charity Mseka highlighted the importance of these dividends as a reward to shareholders, emphasizing the bank’s strong performance despite challenging economic conditions.
“Our dividend payouts are a clear indicator of our strong performance and our commitment to rewarding our shareholders. The substantial amount underscores our dedication to delivering value to our investors,” Mseka said.
Looking ahead, Mseka addressed the bank’s strategy for 2024, acknowledging the economic challenges posed by foreign currency shortages, a widening trade deficit, and sluggish GDP growth.
Despite these challenges, she expressed confidence in FDH Bank’s strategic plan for 2024 to 2026 which focuses on adaptability, resilience, and sustainable growth.
Joe Maele of IB Holdings, representing the shareholders, expressed satisfaction with the bank’s performance and the generous dividend payouts.
“We are pleased with FDH Bank’s results and the dividends we’ve received. Despite economic uncertainties, we believe the bank has the potential to achieve even greater success by exploring new markets and opportunities,” Maele said.
He also noted potential challenges posed by external factors such as fuel and food shortages but remained optimistic about the bank’s ability to sustain profits and continue delivering value to its shareholders.
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