FMB Capital Holdings (FMBCH) plc has posted a $30.6 million (about K23.1 billion) profit in the year ended December 31, 2018.
The amount is 12 percent lower than the $34.8 million (about K26.3 billion) profit the company posted in 2017.
Speaking at the company’s annual general meeting in Blantyre on Tuesday, FMBCH Chairperson , Terence Davidson, attributed the group’s performance to performance of its subsidiary in Zambabwe and reduced interest rates in Malawi.
“Our Zimbabwe operation, acquired from Barclays in late 2017, continues to contend with that country’s well-publicised economic challenges which has resulted in severe shortages of foreign currency and spiraling inflation.
“Our Malawi bank’s profits fell marginally. A continued reduction in interest rates impacted interest income and higher than normal operating costs were incurred because of extensive rebranding and corporate restructuring exercise,” Davidson said.
Some minority shareholders questioned failure by the group to pay dividends.
Davidson said, once the company completes its investment strategy and gains ground in the region, shareholders would reap the best of their investment.
FMBCH has a footprint in Malawi, Mozambique, Botswana, Zimbabwe, Zambia and Mauritius.