CDH Investment Bank has posted a K11.140 billion profit after tax for the financial year ended December 31 2023, the bank says in a published summary of its audited results.
This represents a 48 percent jump in the profit from K7.53 billion the bank reported in 2022.
According to the report, during the year under review, customer deposits grew by 42 percent year-on-year, while the bank’s loans and advances grew by 34 percent.
Investment funds and financial assets also grew by 42 percent and 40 percent, respectively.
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The performance was largely driven by growth in customer deposits and investment funds by 42 percent over prior year.
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Consequently, net interest and net trading income grew by 39 percent and 35 percent, respectively.
The bank saw a 76 percent increase in its non-interest revenue from K6.6 billion to K11.6 billion.
Overall, it says its net revenue also grew by 50 percent. During the period under review, the bank’s total assets grew by 42 percent from K219 billion to K311 billion.
“The leading investment bank in Malawi continues to successfully leverage on its unique ability to integrate corporate finance and investment banking services with traditional commercial banking activities to deliver impressive value to its stakeholders generating an impressive return on shareholder’s equity of 40 percent,” reads part of the report.
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It says notwithstanding an increase in expenses, the bank’s cost to income ratio went down to 43 percent from 45 percent in the prior year.
On outlook, CDH Investment Bank says the local economic environment is expected to remain challenging in 2024 due to continued foreign currency shortages emanating from the widening trade deficit gap and a slow gross domestic product growth.
“Nevertheless, the bank remains fully committed to identifying opportunities to help our stakeholders to grow with our continued offering of specialized and innovative financial services.
“CDH Investment Bank will continue to implement the strategic objectives which focus on people development, customer centricity and sustainable performance in its core revenue areas, while leveraging on its unique service proposition, corporate financial advisory and investment banking, investments in effective digital platforms and brand equity,” the bank says.
CDHIB opened for business in April 2012 following the successful conversion from Continental Discount House Limited which had operated in the financial sector for 14 years since August 1998.
CDH revolutionisd trading of financial securities in Malawi, a legacy it continues to carry as it leads in the development of the capital market in Malawi.
CDHIB’s unique service proposition is investment banking and corporate financial advisory service to its clients. It is a deposit-taking investment bank out of which it makes loans and advances.
