Shareholders of FDH Bank plc have greenlit a final dividend of K7.039 billion, marking a pivotal moment in the bank's financial trajectory following a robust performance in 2023.

The announcement came during the 17th Annual General Meeting convened on 24 May 2024 at the Sunbird Mount Hotel in Blantyre, where stakeholders convened to reflect on the institution's achievements and chart a course for the future.

In 2023, FDH Bank recorded a remarkable surge in profits, with post-tax earnings reaching K35.647 billion, marking a notable 55 percent increase from the previous year's figure of K22.932 billion.

The newly approved dividend consolidates a total payout of K22.635 billion from the bank's 2023 profits.

This sum includes the disbursement of a first interim dividend of K9.04 billion in August 2023 and a subsequent dividend of K6.556 billion distributed in December of the same year.

Speaking to the bank's outlook for 2024, Chairperson Charity Mseka acknowledged the prevailing challenges, including persistent foreign currency shortages, compounded by a widening trade deficit and sluggish Gross Domestic Product (GDP) growth.

Nevertheless, Mseka expressed confidence in FDH Bank's resilience and adaptability, citing a newly formulated strategy spanning from 2024 to 2026.

Mseka said the fresh strategy aims to navigate the complexities of an increasingly volatile business landscape, fostering sustainable growth and shareholder value.

"In distributing dividends, we signal the company's strong performance. The substantial amount reflects our commitment to rewarding shareholders, the true owners of the business, for their trust and investment," remarked Mseka.

She further emphasized the bank's unwavering support for the private sector, engaging with businesses across various sectors to address pressing concerns.

Despite the challenging environment, Mseka affirmed FDH Bank's commitment to meeting customer demands, particularly in mitigating forex-related challenges.

Representing the shareholders, Joe Maele of IB Holdings expressed satisfaction with FDH Bank's stellar performance, underscoring the importance of dividends in investor returns and market stability.

"We are pleased with the positive results achieved by FDH Bank. However, there is always room for improvement, and we remain optimistic about the bank's potential for further growth and exploration of new opportunities," Maele remarked.

Acknowledging the current economic uncertainties, Maele highlighted potential challenges posed by external factors such as fuel and food shortages.

Despite these concerns, he maintained confidence in the bank's ability to navigate through turbulent times, leveraging its solid foundation to deliver sustained value to stakeholders.