By William Kumwembe:
Conglomerate FDH Financial Holdings has posted a K4.96 billion after-tax profit for the half year ended June 30 2019 compared to K1.38 billion reported in June 2018.
The performance is partly attributed to sustained profitability of the firm’s subsidiary, FDH Bank, which has posted an after-tax-profit of K3.35 billion from K1.34 billion during the corresponding period.
FDH Bank’s sister company, First Discount House Limited registered a profit-after-tax of K1.19 billion for the first half of the year from K156.8 million in June 2018
A statement of the group’s financial results for the period shows that total income grew by 56 percent from K11.7 billion to K18.3 billion.
Net interest income, however, remained flat compared to June 2018 despite the growth of assets book by both the bank and the discount house, mainly due to a drop in monetary policy which resulted in a drop in lending rates and a decline in all-type Treasury Bill rates.
Non-Interest income grew by 74 percent.
“The FDH Group continues to provide improved customer digital experience across the country through digital platforms and innovative products that include the mobile banking platform,” reads statement signed by Board Chairperson Noel Nkulichi, Chief Executive Officer Thomshon Mpinganjira, Audit and Finance Chairman Ulemu Katunga and Chief Finance Officer George Chitera.
The statement says total assets have increased by 37 percent from June 2018, mainly due to the group’s drive to prudently grow the assets book while also diversifying the portfolio.
Going forward, the group expects the stable economic environment to continue, notwithstanding the elections standoff, with inflation averaging around 9 percent.
The firm says it expect the kwacha/US dollar to remain stable for the remainder of the year.
“It is also expected that drop of lending rates will spur credit growth with anticipation of economic growth,” reads the statement.