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The First Merchant Bank (FMB) group says it has recorded a 5 percent growth in profit before tax.FMB's financial results statement for the year ended December 31, 2009, published yesterday signed by the bank's Managing Director Kashnath Chaturvedi and Director Mordecai Msisha, indicates that the growth was achieved despite a net loss of K200million.The statement says FMB made a net loss in its listed equity portfolio of almost K200 million compared to 2008, K350 million profit.Net interest income for the bank grew by 37 percent while non interest income went up by 26 percent.

The statement said Capital Bank Limited, FMB's subsidiary in Botswana is the main driver of the growth in the group's asset base.The bank notes that while the year 2009 was financially challenging due to the acute shortage of forex, the market will however be highly competitive in 2010.FMB notes that the competitiveness will add pressure on interest margins and coupled with foreign exchange shortages, will led to depressed foreign exchange earnings.However, the bank was optimistic that the expanded geographical coverage and introduction of innovative products will enable it grow.FMB which is listed on the Malawi Stock Exchange (MSE) has declared a second interim dividend to its shareholders of 6 tambala per share payable on March 31, 2010.The bank's directors also proposed a final dividend of 2 tambala per share to be declared at its forthcoming annual general meeting.FMB shares are currently trading at K10 each on the stock market.