Malawian financial services provider FDH Financial Holdings posted after-tax profits of MK4.96 billion for the first half of the year ended 30th June 2019. This marked a significant increase on the MK1.38 billion in profits reported the previous year (June 2018).
The company attributes its sustained profitability to increased revenue generated by subsidiary company FDH Bank, which posted after-tax profits of MK3.35 billion, rising from MK1.34 billion in the corresponding period the year before.
Another subsidiary company of FDH Financial Holdings, First Discount House, reported after-tax profits of MK1.19 billion for the first half of 2019. Compared with MK156.8 million posted for the corresponding period in 2018, again this represented a significant increase in profits.
FDH Financial Holdings issued a statement covering the first half of 2019. In it, the company revealed 56% growth, to MK18.3 billion. Conversely, net interest remained flat in comparison with June 2018, despite growth in assets by both First Discount House and FDH Bank. This was attributed to a drop in monetary policy triggering a decline in all-type Treasury Bill rates combined with decreased lending rates.
FDH Financial Holdings’ biannual statement was signed by Board Chair Noel Nkulichi, Founder Dr Thomson Mpinganjira, CFO George Chiltera, and Audit & Finance Chairman Ulemu Katunga. It outlined the organisation’s continued commitment to digital development and improving customer experience through the implementation of innovative products and digital platforms across Malawi, including mobile banking platforms.
FDH Financial Holdings’ statement revealed that total assets grew by 37% from June 2018, an increase the company attributed to its drive to increase its assets book, while at the same time diversifying its investment portfolio.
Going forward, FDH Financial Holdings anticipated a stable economic environment notwithstanding upcoming elections, with inflation averaging around 9%, and the kwacha/USD exchange rate remaining stable for the rest of the year. The statement also predicted that lending rates would fall, spurring credit growth and resultant growth in the economy.
In February 2020, the company’s optimistic prediction proved well-founded, when FDH Financial Holdings reported after-tax profits of MK11.3 billion for the year ending 31st December 2019, marking a 44% increase on the MK7.8 billion posted the previous year.
FDH Financial Holdings’ statement for the year ended December 2019 revealed a further 38% income growth, to MK44.6 billion, again bolstered by the good performance of its subsidiary company FDH Bank.
You can learn more about FDH Financial Holdings’ impressive gains throughout 2019 by viewing the attached infographic.
About FDH Financial Holdings
FDH Financial Holdings comprises four subsidiary companies, namely: First Discount House, FDH Money Bureau, FDH Bank, and FDH Stockbrokers Limited.
Founded by Dr Thomson Mpinganjira, FDH Financial Holdings is the first Malawian financial institution to be established and owned by an individual citizen. Based in Blantyre, Malawi, FDH Financial Holdings remains a privately held organisation, specialising in banking, stockbroking, bureau de change, discount house, and providing corporate and personal financial products and services.
Renowned throughout the region as one of the most important Malawian businessmen of his generation, Thomson Mpinganjira created FDH Financial Holdings, a homegrown Malawian organisation that is today a major financial services provider. With further expansion plans in the works, it is anticipated that this leading company will grow further still, playing an instrumental role in the digitisation of banking systems throughout Malawi and increasing access to innovative banking solutions for citizens all over the country.
Outside of his companies, Dr Mpinganjira is committed to supporting development and economic growth throughout Malawi, chairing a number of boards including the Malawi Investment Promotion Agency and the Public Sector Reform Commission. You can learn more about Thomson Mpinganjira by watching the attached short video.
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