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First Discount House Bank (FDH Bank), a wholly owned subsidiary of FDH Financial Holdings Limited and leading financial services provider established by Thom Mpinganjira — one of Malawi’s most successful businessmen, has announced a final dividend payout of MWK7.039 billion ($4.06 million) for the 2023 fiscal year, a testament to its financial milestones in 2023.
The record dividend payout underscores its unwavering dedication to shareholder value and its position as one of the leading groups in Malawi’s financial services industry. With Mpinganjira as the founder, the bank continues to achieve remarkable financial milestones, solidifying its reputation in the country’s financial services industry.
Bank to reward shareholders following surge in profits
Subject to shareholder approval at its upcoming Annual General Meeting (AGM), FDH Bank will pay a dividend of MWK 1.02 per share ($0.000589) or a total of MWK 7.039 billion ($4.06 million) on June 20. The dividend will be electronically credited to the bank accounts of shareholders on record as of the close of business on June 12, 2024.
Since William Mpinganjira, son of founder Thom Mpinganjira, took the helm, FDH Bank has recorded impressive financial milestones — it witnessed a 55.45 percent surge in profit, reaching a record MWK 35.6 billion ($20.54 million) in 2023. This is attributed to a combination of factors, including a 43.6-percent increase in interest income and substantial gains from foreign exchange portfolio revaluations.
The surge in interest income solidifies FDH Bank’s position as a leading financial services provider in Malawi. Additionally, international trade and local business transaction volumes have grown in line with the Bank’s strategy, contributing to a 47 percent increase in total income (net interest income and non-interest income combined).
FDH Bank strengthens position with profit surge
Fueled by this performance, total assets climbed to MWK 566.06 billion ($326.56 million) as of Dec. 31, 2023, from MWK 434.49 billion ($250.69 million) a year earlier. This 30 percent increase reflects a 23 percent expansion in the loan book and a 32 percent rise in government securities, both aligned with the bank’s strategy to bolster interest-earning assets.
To reward shareholders for this impressive performance, the board of directors recommended a final dividend of MWK1.02 ($0.000589) per share. This, combined with the interim dividend, brings the total payout to MWK 3.22 ($0.0018504) per share, or MWK 22.64 billion ($13 million), sourced from profits.
