Half-year profit-after-tax for CDH Investment Bank has increased by 53 percent to K8.3 billion, the bank says in its unaudited summary of results for the six-month period to June 2024.
This is compared to a K5.5 billion post-tax profit the bank reported during a similar period last year.
The results were driven by growth in both net interest income and non-interest income by 53 percent and 26 percent, respectively, according to the statement.
It says operating income before impairments on loans and advances grew from K12.9 billion to K20.7 billion on account of growth in net interest income and non-interest income.
According to the statement, the bank’s performance in the first half of 2024 was driven by growth in investment funds and customer deposits.
It says total assets grew by 99 percent from K240.1 billion to K476.8 billion mainly due to a 180 percent increase in financial assets at fair value through profit or loss, a 91 percent growth in investment in government securities at amortised cost, and a 41percent increase in loans and advances to customers.
This was supported by a 183 percent growth in investment funds and a 42 percent increase in customer deposits.
“The bank continues to leverage on investment banking and advisory solutions to drive growth in its commercial banking business,” reads the statement.
On economic outlook, the bank says it expects inflation to remain high, averaging 33.5 percent to the end of the year.
It says relatively high money supply growth, underperformance of the export sector and higher global oil prices remain major risks to the inflation outlook.
“The bank expects continued pressure on the Kwacha exchange rate as a result of the increasing negative trade balance,” the statement reads.
The bank continues to 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.
It says the bank will continue to meet its client’s expectations through continuous development of our people, investment in modern technology and investment in strategic alliances.
“We reaffirm our commitment to providing well researched and innovative financial solutions to all clients. Capital optimisation, cost discipline, asset diversification and effective risk management will remain our pillars for sound financial performance for the bank,” it says.
The statement has been signed by the bank’s board chairperson Franklin Kennedy, chief Executive officer and Managing Director, Thoko Mkavea, Chairperson of the Board Audit Committee Sydney Chikoti, and chief finance officer, Kelvin Mkulichi.
