Malawi Stock Exchange-listed FDH Bank has said it is exploring expansion plans in the region, including in neighboring Mozambique, Tanzania and Zambia, as part of its expansion drive.
This came out during an investors forum the bank held in Blantyre on Tuesday.
FDH Bank Managing Director Noel Nkuluchi said its subsidiary, FDH Money Bureau, is finalising paperwork to start operations in Zambia.
He said the bank is still assessing the situation in a number of markets.
In an interview on the sidelines, FDH Bank Board Chairperson Charity Mseka said the bank maintains its drive to expand footprints on the local market and is eying Chizumulu island as the next destination to open an outlet.
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“We have to grow; we do not want to stagnate. We are looking at growth plans, and as you might have heard, we’ve been to the Southern Africa region, we’ve been to Mozambique.
“We are still making assessments as to where we should settle. So, the expansion drive is still on the cards,” Mseka said.
One of the company’s shareholders, Frank Harawa, who is also Minority Shareholders of Listed Companies (Misalico) General Secretary, urged the company to move with speed with the expansion drive.
“We are proud of our bank and how it has performed,” Harawa said.
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A recently published statement of financial results has shown that the bank posted a profit after tax of K35.647 billion for the year ended December 2023.
This represents a 55 percent jump from the K22.932 billion profit which the bank reported in 2022.
According to the statement Net Interest Income went up by 60 percent on the back of the increase in its loan book and other interest-bearing assets, while Interest expense declined by 2 percent despite the growth of the Bank’s deposits by 35 percent.
“Non-interest income increased by 33 percent mainly due to the picking up of business as more customers embrace transacting on digital platforms. International trade and local business transaction volumes also picked up in line with the Bank’s strategy.
“The increase in net interest income and non-interest income resulted in total income growth of 47 percent,” the statement reads.
