FDH Bank posts K4.5 billion profit

Charity Mseka

Malawi Stock Exchange-listed FDH Bank posted a post-tax profit of K4.5 billion in the half year ended June 30 2021, up from K3.2 billion posted during a similar period last year.

This is according to the bank’s financial report for the period under review published Thursday and signed by its board chairperson Charity Mseka, acting Managing Director George Chitera, Chairperson for the Finance and Audit Committee and Head of Finance Richard Chipezaani.

In the report, the bank says net interest income went up by 70 percent on the back of the increase in the loan book and other interest bearing assets while interest expense also went up by 31 percent, reflecting growth of the bank’s deposits.


Non-interest income went down by 18 percent, mainly due to the slowing down of business because of the Covid pandemic.

“International trade and local business transaction volumes continue to be negatively affected by logistical challenges faced in the international supply chain as a result of lockdowns in trading partner countries,” laments the bank in the report.

It says the increase in net interest income that was partly offset by the decrease in non-interest income resulted in total income growth of 19 percent.


According to the report, the bank’s operating expenses grew by 6 percent when compared to the same period last year.

The bank continues to put more focus on effective cost management as it continues to bring down the cost-to-income ratio.

Total assets increased by 30 percent from December 2020 mainly emanating from the increase in loan book by 22 percent.

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