CDH Investment Bank has reported strong interim results for the first half of the year ending 30 June, 2024, posting K8.3 billion profit after tax — a 53 percent increase from the K5.5 billion reported in the same period last year. The unaudited results published in a statement have been endorsed by the bank’s board and executive.

The statement reads in part: “The bank realized a profit after tax of K8.3 billion against prior half year performance of K5.5 billion representing an increase of 53 percent. Operating income before impairments on loans and advances grew from K12.9 billion to K20.7 billion mainly on account of growth in net interest income and non-interest income.”

The statement jointly signed by board chairperson, Franklin Kennedy, Chief Executive Officer and Managing Director, Thoko Mkavea, Chairperson of the Board Audit Committee Sydney Chikoti, and Chief Finance Officer, Kelvin Mkulichi, state that the results were driven by growth in both net interest income and non-interest income which grew by 53 percent and 26 percent respectively.

“The bank realised a profit after tax of K8.3 billion against prior half year performance of K5.5 billion representing an increase of 53%. Operating income before impairments on loans and advances grew from K12.9 billion to K20.7 billion mainly on account of growth in net interest income and non-interest income.”

The statement further says, the bank’s performance in the first half of 2024 was driven by growth in investment funds and customer deposits.

“Total assets grew by 99 percent from K240.1 billion to K476.8 billion mainly due to a 180 percent increase in financial assets at fair value through profit or loss, a 91 percent growth in investment in government securities at amortised cost, and a 41 percent increase in loans and advances to customers. This was supported by a 183 percent growth in investment funds and a 42 percent increase in customer deposits,” the bank says.

CHDIB says is leveraging on investment banking and advisory solutions to drive growth in its commercial banking business.

It further highlights that with Inflation expected to remain high averaging 33.5 percent to the end of the year. Average headline inflation is estimated at 30.0 percent for 2024, higher than the average of 28.8 percent for 2023 will resulting to relatively high money supply growth, underperformance of the export sector and higher global oil prices are major risks to the inflation outlook. The bank expects continued pressure on the Kwacha exchange rate as a result of the increasing negative trade balance.

The Malawi gross domestic product (GDP) growth is projected to average around 2.3 percent in 2024 mainly driven by the effects of El Nino weather conditions.

CDH Investment Bank is one of the leading investment banks in Malawi which opened for business on April 2012 following the successful conversion from Continental Discount House Limited which had operated in the financial sector for 14 years since August 1998.