We have extracted the financial summary from the full year abridged report of Madison Financial Services PLC listed on the Lusaka Securities Exchange under the share code MFIN.zm. Madison Financial is a financial institution offering solutions for general insurance and life assurance products for personal and corporate clients.

The following is an excerpt from the full year abridged report:

REVIEW OF FINANCIAL RESULTS
The Company recorded a profit after tax of K21.537million for the period ending 31st December 2018 compared to a profit of K1.848 million recorded as at 31st December 2017. The Company’s increased profit after tax was mainly attributable to an increase in disbursements in the period coupled with the direct cost containment.

FINANCIAL HIGHLIGHTS
The key highlights of the financial performance for the period under review were;

1. Interest income YTD of 124.3million is above budget by 18% while the Interest expense YTD of 68.5 million is below budget by 7.0%.
2. The loans and advances to customers grew by 22% and was the major asset growth driver.
3. Customers’ deposits grew by 65% with an improvement in the portfolio mix between corporate and personal deposits.
4. The total assets and liabilities grew by 20% during the year under review and the loan book was the main driver while the liabilities’ growth was mainly driven by the deposits from customers.

OUTLOOK
The company performance in 2019 is expected to remain strong. This will be on the back of:
• Expected continued strong disbursement performance
• Operational costs containment
• Competitive pricing of liabilities to maintain the direct costs within budget levels