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FDH Bank makes turnaround in H1

04 Sep
Confident- Ouattara Confident- Ouattara

One of the country's commercial banks, FDH Bank registered a financial turnaround in the first half of 2017, recording an after tax profit of MK1.64 billion from a loss of  MK192.2 million during the same period last year.
The development follows a MK9.7 billion capital injection the bank made in the first six months of 2017 to make the institution Basel II compliant, following the acquisition  of Malawi Savings Bank last year.

 In a financial statement released last week signed by directors Eric Sankhulani and Eric Ouattara, the bank has hailed the continued support it gets from customers as well as authorities.Among others, the bank says, during the period under review, it continued to invest in digital products and other distribution channels as it focuses on improving customer experience as well as diversifying sources of noninterest income.It says, notwithstanding the significant investment in the digital platform, operating expenses have been well contained and recorded a 2 percent decrease when compared to the same period last year.
“The bank will continue to put more focus on effective cost management as we continue to bring down the cost of income ratio to market levels," reads the statement in part.
Looking into the future, FDH Bank says it is very optimistic about future business prospects.
“The bank continues to innovate and introduce new product offerings supported by the-state-of the-art T24 core banking system which was implemented in May 2016. The bank also continues to expand its footprint and upgrade its existing network and this has seen the opening of a new service centre in Balaka in June, 2017.
“This service centre was previously in the post office building and its relocation to the new building is in fulfillment of the bank's promise to the Malawi Government and the people of Malawi to upgrade rural banking services,” reads the statement.
FDH has also disclosed plans to move its ex MSB service centres from post offices in Kasungu and Chiradzulu to new premises and move to a new state-of-the-art service centre at Chichiri Shopping Mall.
“We will continue to invest in the upgrading of the facilities from MSB that were in bad shape to bring them up to Standard to improve customer experience,” the bank says.

By Taonga Sabola