By William Kumwembe:
FDH Financial Holdings has posted a K7.8 billion after-tax profit for the year ending December 31 2018 compared to K94.6 million reported in 2017.
The performance is partly attributed to bouncing back to profitability of the firm’s subsidiary, FDH Bank, in 2018 when it posted an after-tax profit of K5.965 billion from a loss after tax of K1 billion in 2017.
A statement of financial results for the period shows that FDH Financial Holdings Limited registered a 28 percent total income growth from K25.2 billion to K32.3 billion.
However, Net Interest Income dropped by 7 percent on the back of significant cleaning up of non – performing Loan book. non – interest income grew by 50 percent.
The statement co-signed by FDH Financial Holdings Board Chairman Noel Nkulichi and Chief Executive Officer Thom Mpinganjira, says the financial results have demonstrated the firm’s resilience in performance in an adverse environment.
“The group continued to invest in digital products and other distribution channels as the focus is to improve customer experience as well as diversifying sources of non- interest income,” reads part of the statement.
According to the statement, total assets for the group slightly decreased by 1 percent mainly emanating from the decrease in commercial papers which was compensated by the growth in Treasury Bills, Plant, Property and Equipment driven by the group’s investment in digital products and distribution channels.
In its outlook, the group says it anticipates tight monetary policy to continue, the country’s GDP to reflect the expected good harvest for the year, Inflation to be maintained at the lower level and the exchange rate to be relatively stable for much of 2019.
“It is also expected that the recent drop of the base lending rates will spur credit growth with anticipation of economic growth,” indicates the statement.
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