Listed FDH Bank plc has reported an after tax profit of K14.9 billion for the year ending 31 December 2020 from a restated after tax profit of K5.19 billion the previous year.

In a statement signed by the Bank’s Chairperson Charity Mseka, Director Ulemu Katunga, managing Director Ellias Ngalande and Head of Finance Richard Chipezaani, the bank said it achieved the impressive financial results amid a challenging operating environment.

“Net Interest Income went up by 77% on the back of an increase in the loan book and other interest bearing assets. Interest expense went up by 15.8% reflecting the growth of the Bank’s deposits.”

“Non-interest Income in the year was significantly affected by the Covid-19 pandemic. Digital financial services fees were reduced by 40% to encourage people to transact more on digital platforms to reduce the spread of Covid-19. International trade and local business transaction volumes were affected by lock downs in trading partner countries which slowed down the economy,” read the statement in part.

The bank said total non-interest income could have dropped by 34% before the restatement and that as a result of the restatement, a significant portion of this revenue was recognized in 2020 after being restated from 2018 and2019.

“This resulted in non-interest income to grow by 29% from K22.02 billion in 2019 to K28.378 billion in 2020 after restatement,” reads the statement.

On the operating environment, the Bank said the Covid-19 pandemic negatively affected global and local economic growth in 2020 with the global gross domestic product (GDP) shrinking by an estimated 3.5% in 2020 while Malawi’s GDP grew by around 1.2%. This was, the Bank noted, from an initial pre-pandemic local GDP growth projection of 5.1% according to the Reserve Bank of Malawi (RBM).

“The slowdown in the economy has affected productivity in many sectors with most businesses operating at reduced capacity. This has also increased the expected credit losses as some businesses are expected to struggle to meet their financial obligations,” reads the statement in part.

FDH Bank plc also noted that the Kwacha depreciated against the United States dollar and other major currencies in the second half of 2020 due to the increased negative trade balance as exports slowed down due to logistical challenges resulting from lock downs while imports increased due to importation of Covid-19 related materials. This increased the cost of all foreign-based contracts that the Bank has.

FDH Bank which successfully listed on the Malawi Stock Exchange on 3^rd August 2020 with 20% shares being offered to the general public, paid an interim dividend of K3.0 billion in respect of 2020 profits on 26 March 2021 to members appearing in the register of the Company as at close of business on 12 March 2021.

The Bank envisages that the economy is expected to recover from the Covid-19 pandemic in 2021 but with the new wave of cases the 2021, Growth Domestic Product (GDP) growth prospects are likely going to be subdued.

“Global GDP growth for 2021 is expected to reach 5.54% while the local GDP growth is projected to be 4.5% contingent on the evolution of the pandemic according to the Reserve Bank of Malawi. Inflation is expected to average around 8%. We anticipate the Kwacha/US Dollar exchange rate to continue to depreciate in 2021 due to the high negative trade balance.”

“To continue being competitive and exploit existing and emerging opportunities in the market and deliver value to our customers, shareholders and other stakeholders, we have reviewed and developed a new cycle of strategic objectives to run from 2021 to 2024.”

“Leveraging on our market position, widest distribution network, effective digital platform, brand equity, and strong financial performance, we will focus on growing revenue and market share, reducing operating cost for sustainable performance and profitability, creating highly engaged employees and contributing significantly to the creation of an inclusive, diverse and sustainable society,” reads the statement in part.

By Mc Donald Chapalapata, a Contributor

Malawi’s pioneer mobile and ICT services provider TNM plc unveiled the first K1 million winner in the Tikolore promotion, a day after launching the three month long promotion in Lilongwe.

Estate Agent Francis Mtukanika, who was just passing Area 23 in Lilongwe after knocking off from work and bumped into the TNM team, became the first K1 million winner after buying airtime worth K200.

“I am happy that I have won this money. I did not believe it when I got the call but with just K200 which recharged my phone, I have won K1 million. I will use this money to set up a proper office for my business,” said Mtukanika.

Minister of Youth and Sports Ulemu Msungama who launched the promotion the previous night drew the winner in Area 23 which is also his constituency as a Member of Parliament.

He appealed to people to support the promotion saying it is a celebration of the harvest season as the country is expected to have a bumper yield this year.

TNP plc Chief Marketing Officer Frank Magombo said Mtukanika is the first of the 30 millionaires that the Tikolore promotion will produce by 1^st July 2021 when the promotion ends.

“You have seen that it is simple to make your first K1 million with just K200 of airtime. Our first winner Francis Mtukanika has just shown us that NdiZotheka (it is possible) to win. So I am appealing to all of you to buy airtime worth K200 or more and stand a chance to win,” said Magombo.

He said apart from creating the 30 millionaires, a total of 250 lucky customers win K10,000 every week for 12 weeks, making a total of 3,000 winners and 50 lucky customers will win K100,000 every month, making a total of 150 winners within three months.

Magombo said everyone is a winner in the promotion explaining that even if someone recharges with K100 airtime, they will instantly be rewarded with free minutes, data and SMSs.

“This promotion is an appreciation to our customers for choosing TNM as their communications and digital services provider hence the mega harvest promotion. Our purpose is connecting society, creating possibilities, and changing lives and that is why we are happy to make everyone a winner in this Tikolore promotion and people’s lives shall definitely be changed,” said Magombo.

The promotion runs from 1^st April to 1^st July 2021.

Listed National Bank of Malawi (NBM) plc has registered a group profit after tax of K22.45billion from K17.16 billion in 2019 representing an increase of 31% for the period ending 31 December 2020.

In a statement signed by the Bank’s Board Chairman Dr George Partridge, Board member Dorothy Ngwira, Chief Executive Officer Macfussy Kawawa and Chief Finance Officer Masauko Katsala, NBM plc says there was a significant growth in non-interest income of 17% while net interest and investment income grew by 9%.

“Overall net revenue grew by 12%. The Bank continued to control expenses within inflation. Operating expenses increased by 7% while impairment losses reduced by 45%.Customer deposits increased by 27% year on year while the Bank’s loan book grew by 6% largely on account of the COVID-19 pandemic.  Excess funds were invested in Treasury Bills and Treasury Notes which grew by 35%,” reads the statement in part.

The Bank said the expected economic growth for year 2020 was revised downwards to 0.9% from an earlier estimate of 5.0% and that economic activity for the year remained subdued largely on account of both the political uncertainty in the run up to the Fresh Presidential Election and the impact of the Covid-19 pandemic.

“The Reserve Bank of Malawi (RBM) and the Bankers Association of Malawi implemented some measures to help businesses mitigate the impact of the COVID-19 pandemic. These included the reduction of the domestic Liquidity Reserve Requirement from 5% to 3.75% by RBM with a view to releasing some liquidity into the economy, 40% reduction of service fees for digital banking products, and restructuring of loans which included the granting of at least 3 months loan repayment moratoria to businesses that would be affected by the pandemic,” reads part of the statement.    

The Bank said Inflation averaged 8.6% in the year down from 9.6% recorded the previous year, anchored by non-food inflation which averaged about 3.8% in the year.

 “During the year, the Malawi Kwacha gradually depreciated against all major trading currencies.   The weakening of the Kwacha reflected the scarcity of foreign exchange supply amidst the Covid-19 pandemic and a weak exports performance,” reads the statement.

NBM plc also announced that it has entered into negotiations to further acquire 24% stake in Akiba Commercial Bank (ACB) in Tanzania after completing the acquisition of a 51% controlling stake in the foreign bank towards the end of the year 2020.

NBM plc said the directors of the bank have recommended to pay a final dividend of K8 billion, up from K4.3 billion paid last year, making a total dividend of K13 billion in respect of 2020 profits representing K27.84 per ordinary share, up from K17.78 per share in 2019.

“The Bank paid an interim dividend of K2.5b in September 2020 (2019: K2.5b) and a second interim dividend amounting to K2.5b on 31 March 2021 (2019: K1.5b). The final dividend will be payable after approval by the Annual General Meeting scheduled for June 2021,” reads the statement in part.

Commenting on the economic outlook, NBM plc says the economy is expected to grow by 3.5% in 2021 driven by an improved macro-economic environment following availability of Covid-19 vaccines.

“Looking ahead the Board envisages a continuing stable macroeconomic environment. This, however, is dependent on how quickly the Covid- 19 situation is brought under control and economic activity returns to normality.  In addition, the acquisition of controlling stake in ACB has opened the door for the Group to realize its regional diversification strategy,” reads the statement in part.

By Mc Donald Chapalapata, a Contributor

…30 millionaires will be made in 3 months

Malawi’s pioneer mobile and ICT services provider TNM plc has launched a new promotion dubbed ‘Tikolore promotion’ which is a celebration for the harvest season.

Launching the Tikolore Promotion in Lilongwe on Wednesday evening, TNM plc Chief Executive Officer Arnold Mbwana said the promotion is an appreciation to their customers for choosing TNM as their communications and digital services provider hence the Mega harvest promotion.

“Our purpose is connecting society, creating possibilities, and changing lives and that is why we are happy to make everyone a winner in this Tikolore promotion and people’s lives shall definitely be changed. Every recharge, every bundle and mtolo that customers buy will qualify them for an instant bonus or become one of the 30 millionaires that we want to make this season!” said Mbwana.

He said entry to the promotion which runs for three months from 1^st April 2021 to 1^st July 2021 is as simple as ‘you recharge and you win’.

“For example customers who recharge with a minimum of K100 will instantly win free minutes, data and SMS. TNM will also splash cash prizes to customers who recharge with a minimum of MK200.”

“Customers who will take a step further to recharge with at least MK200 will enter into weekly, monthly and grand draws throughout the promotion period and stand a chance to win cash. All recharge channels are applicable to qualify for the draws, including scratch cards, Mpamba, Pompopompo and Banks,” said Mbwana.

He said a total of 250 lucky customers win K10,000 every week for 12 weeks, making a total of 3,000 winners, 50 lucky customers will win K100,000 every month, making a total of 150 winners within three months. And by the end of the promotion, there will be 30 millionaires that Tikolore Promotion will create.

“The best part of it is that, for the first time in Malawi, the first millionaire will win on the first day of the Tikolore promotion, which is 1st April 2021,” said Mbwana.

Launching the promotion, Minister of Youth and Sports, Ulemu Msungama hailed the promotion as a life changer, which could not come at a better time.

“Just yesterday, His Excellency the President of the Republic of Malawi Dr Lazarus McCarthy Chakwera led the nation in celebrating the success of the Affordable Inputs Programme (AIP). We are going to have a bumper harvest this year, so this ‘Tikolore promotion is very timely,” said Msungama.

April heralds the harvest season, a season when the country’s highly agricultural populace starts to reap fruits of their labour and TNM plc being the truest son of the soil, Mbwana said, wants to join in the celebration because it is ‘ Always With You’ in every season.

First Capital Bank (FCB) commemorated this year’s Global Money Week with a digital campaign sensitizing communities, especially young people, on how money affects livelihoods now and across future generations.

The campaign included an interface with students at Bedir International Schools in Blantyre where bank officials imparted money knowledge and responded to random questions on the issue.

 Bedir Trust Executive Thokozani Mbewe expressed gratitude at the banks initiative saying it was insightful and exciting.

“We are grateful as a school for the financial literacy initiative conducted by First Capital Bank.  The seminar was insightful and very exciting, we look forward to hosting the bank again,” said Mbewe.

This year’s Global Money Week was observed from 22-28 March under the theme ‘Take Care of Yourself, Take Care of Your Money’.

First Capital Bank Products Executive, Jodie Chikowi said the country can only be assured of inter-generational robust finance systems and sustainable development if deliberate steps are taken today to impart money knowledge to the young ones.  

“As a financial institution we believe that a good harvest is a result of timely sowing. In this regard, if we want to attain generations of financially literate people then we must impart knowledge about money on the young ones. It is through these efforts that we can build financially literate communities,” she said.

Chikowi added that early financial education also go hand in hand with the spirit of entrepreneurship.

“Children who learn about finances at a tender age grow with relevant knowledge to start and grow successful businesses in future. This is so because money becomes part of their mental and behavioral fabric as such it does not come as a distraction later in their lives,” explained Chikowi.

Global Money Week is a global money awareness initiative that takes place every March. It is coordinated by the Child and Youth Finance International (CYFI) to raise awareness on Economic Citizenship and directly engage children, youth and their communities in financial education and financial inclusion.

Since its inception in 2012, the campaign has reached over 40 million children and youth in 175 countries worldwide.