CDH Investment Bank posts strong interim results for the half-year ended June 30, 2024

* Profit after tax of K8.3 billion, which is 53% higher than the K5.5 billion reported in the same period last year

* The bank’s performance was driven by growth in investment funds and customer deposits

By Duncan Mlanjira

CDH Investment Bank (CDHIB) has delivered strong interim results for the half-year ended June 30, 2024, posting a profit after tax of K8.3 billion, which is 53% higher than the K5.5 billion that was reported in the same period last year.

According to the unaudited summary of results for six months ended June 30, 2024 released by the bank and endorsed by the bank’s Board chairperson, Franklin Kennedy; Chief Executive Officer & Managing Director, Thoko Mkavea, chairperson of the Board Audit Committee, Sydney Chikoti and Chief Finance Officer, Kelvin Mkulichi — the results were driven by growth in both net interest income and non-interest income which grew by 53% and 26% respectively.

“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,” reads part of the statement.

It also indicates that the bank’s performance in the first half of 2024 was driven by growth in investment funds and customer deposits and the total assets grew by 99% from K240.1 billion to K476.8 billion mainly due to a 180% increase in financial assets at fair value through profit or loss.

It is also due to a 91% growth in investment in government securities at amortised cost and a 41% increase in loans and advances to customers.

“This was supported by a 183% growth in investment funds and a 42% increase in customer deposits. The bank continues to leverage on investment banking and advisory solutions to drive growth in its commercial banking business,” reads the statement.

“Inflation is expected to remain high averaging 33.5% to the end of the year. Average headline inflation is estimated at 30.0% for 2024, higher than the average of 28.8% for 2023.

“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% in 2024 — mainly driven by the effects of El Niño weather conditions.”

The leading investment bank in Malawi emphasises that it “continues to successfully leverage on its unique ability to integrate corporate finance and investment banking services with traditional commercial banking activities to deliver impressive value to its stakeholders, generating an impressive return on shareholder’s equity”.

The report further adds: “We will continue to meet our client’s expectations through continuous development of our people, investment in modern technology, and investment in strategic alliances.

“We reaffirm our commitment to providing well researched and innovative financial solutions to all clients. Capital optimisation, cost discipline, asset diversification and effective risk management will remain our pillars for sound financial performance for the bank.”

CDH Investment Bank opened for business on April 2, 2012 following the successful conversion from Continental Discount House Limited which had operated in the financial sector for 14 years since August 1998.

CDH revolutionised trading of financial securities in Malawi, a legacy it continues to carry as it leads in the development of the capital market in Malawi.

CDH Investment Bank’s unique service proposition is investment banking and corporate financial advisory services to its clients. It is a deposit-taking investment bank out of which it creates loans and advances.

The bank pledges its commitment in providing innovative financial solutions driven by its motto; ‘Banking innovations that help your business grow’.

“The strong performance recorded in the first half of 2024 and in the previous years was possible because of the unwavering commitment of the entire CDH Investment Bank team.

“We are truly grateful to our clients whose loyalty remains one of our strongest assets. We thank our staff for their relentless drive and commitment to duty.

“We also thank our shareholders, the Government of Malawi, the Reserve Bank of Malawi, our correspondent banks and all other stakeholders and partners for their continued support to the mission of CDH Investment Bank.”