FMB Capital Holdings (FMBCH) plc has posted a $30.6 million (about K23.1 billion) profit in the year ended December 31, 2018, registering a 12% dip, compared to $34.8 million (about K26.3 billion) profit the company posted in 2017. According to FMBCH Chairperson, Terence Davidson, attributed the profit drop is linked to the underperformance its subsidiary in Zambabwe and reduced interest rates in Malawi.

“Our Malawi bank’s profits fell marginally. A continued reduction in interest rates impacted interest income and higher than normal operating costs were incurred because of extensive rebranding and corporate restructuring exercise,” said Davidson, adding that Zimbabwe continues to contend with that her economic challenges which has resulted in severe shortages of foreign currency and spiraling inflation.

In January this year, Old Mutual Investment Group acquired stakes in FMB Capital Holdings. The development, is in response to 122m new shares by FMBCH, which are worth K8.54bn. FMBCH Group Managing Director, Dheeraj Dikshit said the development will fund short term medium growth initiatives across the group to grow and solidify its position as a leading banking group in the Southern African region.