Dr Thomson Mpinganjira’s FDH Financial Holdings Reports Massive Profit Growth

FDH Financial Holdings posted after-tax profits of MK4.96 billion for the first half of 2019, compared with MK1.38 billion for the same period in the previous year.

The increase is attributed in part to the continued profitability of FDH Bank, an FDH Financial Holdings subsidiary company which posted after-tax profits of MK3.35 billion for the first half of 2019.

First Discount House, FDH Bank’s sister company, registered after-tax profits of MK1.19 billion for the same period, marking a significant increase on profits recorded for the same period in 2018.

Despite improved overall performance of both FDH Bank and First Discount House throughout 2019, net interest income remained flat compared with 2018, despite both companies growing their asset books. This was attributed to a drop in monetary policy triggering falls in lending rates, coupled with a sharp decline in Treasury Bill rates. However, non-interest income increased by 74%.

In a company statement, FDH Financial holdings reported that the organisation’s total assets had increased from 37% since June 2018, mainly because of the company’s drive to increase its asset book whilst concurrently diversifying its portfolio.

The statement revealed that, moving forward, FDH Financial Holdings expects the economic environment to remain stable, notwithstanding the elections, with inflation averaging at somewhere in the region of 9%. FDH Financial Holdings also predicted that the exchange rate between the Malawian kwacha and US dollar would remain stable for the remainder of 2019.

FDH Financial Holdings reported further growth for the latter half of 2019, recording MK11.3 billion in profits, representing an increase of 44%. Again, the holding company’s performance was bolstered by revenue increases generated by its subsidiary FDH Bank.

In a statement released in February 2020, FDH Financial Holdings revealed that its net interest income increased by 49%, mainly due to increases in interest earning assets. Non-interest income also increased by 34%. Total assets grew by 26% over the same period, mainly triggered by growth in loans and advances, government securities, and growth in plant, equipment, property and other assets driven by group investment in digital products.

 

About FDH Financial Holdings and Founder Dr Thomson Mpinganjira

FDH Financial Holdings is a Malawian holding company that consists of four subsidiaries trading within the financial services sector, namely:

  • FDH Bank
  • First Discount House
  • FDH Money Bureau
  • FDH Stockbrokers

Dr Thomson Mpinganjira, a graduate of the University of Malawi and a chartered accountant by training, founded FDH Financial Holdings and all four subsidiary companies.

After working with renowned multinational company Deloitte & Touche, as well as accumulating experience at Blantyre Printing and Publishing Group, Mandela and the National Bank of Malawi, Thomson Mpinganjira seized the opportunity to become Malawi’s first stockbroker, heading Stockbrokers Malawi Limited and establishing the Malawi Stock Exchange. He presided as CEO until 2002, when he left to establish First Discount House.

Starting with a workforce of just nine employees, FDH Financial Holdings today employs more than 1,000 workers. Dr Thomson Mpinganjira has earned a reputation for championing employee welfare, with FDH Financial Holdings operating a comprehensive health insurance scheme for company employees, their spouses and their children.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.