Malawi Stock Exchange-listed FDH Bank plc has posted a K14.9 billion post-tax profit for the year ended December 31 2020, up from K5.1 billion recorded the previous year.
The bank’s financial statement shows that, during the year under review, net interest income grew by 77 percent on the back of an increase in the loan book and other interest bearing assets.
Interest expenses, however, went up by 15.8 percent, reflecting growth of the bank’s deposits.
According to the statement, co-signed by FDH Board Chairperson Charity Mseka, Managing Director Ellias Ngalande, Finance and Audit Committee Chairperson Ulemu Katunga and Head of Finance Richard Chipezaani, the bank grew its total assets by 30 percent, year-on-year due to increases in loans and advance as well as government securities.
Customer deposits grew by 16 percent during the year under review, from K137.1 billion to K158.9 billion.
Going forward, the bank says it expects subdued gross domestic product growth due to the new Covid wave.
However, the bank remains upbeat that it would remain afloat with its business as it devised a new cycle of strategic objectives.
“We will focus on growing revenue and market share, reducing operating cost for sustainable performance and profitability, creating highly engaged employees and contributing significantly to the creation of an inclusive, diverse and sustainable society,” the statement reads.
Meanwhile, the bank has declared an interim dividend of K3 billion, representing K0.43 per share in respect of the 2020 profit.