Category: Business

Strong performances by the First Capital Bank (FCB) franchises in Botswana, Malawi, Mozambique and Zimbabwe, all achieving profits in excess of $20m, underpinned the full year results of regional banking group FMBCH.

Together, the Group reported a 13% increase in profit after tax (PAT) to $103.5m in the financial year ending 31 December 2024.

The increase in profit would have been even greater had it not been for the restatement of the 2023 financial results due to the change in the functional currency in Zimbabwe. FMBCH had previously reported its after tax earnings at $78.74m, which would have translated to a 31.4% increase.

“Profitability has hit the $100m mark and these results once again underscore FMBCH’s status as a hard currency hedge,” Cedar Capital CEO Armstrong Kamphoni said in an interview.

“While Malawi’s profit was up 4% when translated from kwacha to dollars at the official rate, which is unchanged from a year ago, Botswana and Mozambique put in fantastic performances to underpin the group result,” added Kamphoni.

Botswana reported the highest year-on-year profit growth in the group, with PAT up 44% at $24.09m as a result of payroll lending and syndicated lending, followed by Mozambique with a 36% rise to $26.12m, which Kamphoni noted was impressive given the political turmoil there in the final quarter of 2024.

“Despite the fallout after the October election, FCB Mozambique had a better second half whereas it would seem FCB Botswana’s performance slowed as it posted a 58% rise in PAT at the interim results. Zambia dragged on group performance, but in part that was due to a weak kwacha, which fell to all-time lows during 2024,” remarked Kamphoni.

Kamphoni said FMBCH’s geographical spread was a major enabler for the group and commentary accompanying the results noted as much, pointing out “four of our five banks individually achieved PAT in excess of $20m”.

FMBCH’s final dividend declaration is still pending, after the group made an interim payout of 0.21 US cents per share.

While net interest income for the group remained robust at $166.5m (F23: $136m), non-funded income dropped marginally to $111.8m from $121.1m as net gains on forex transactions dipped to $52.4m from $59.1m.

Kamphoni speculated this was probably due to the situation in Malawi. Expenses were well-controlled at $126.7m, an increase of 9% during high inflationary periods in all markets.

It was also noted that FMBCH’s group balance sheet had exceeded $2bn, a solid increase of 36% as customer deposits rose 38% in the year.

FMBCH remained cautious about lending, with loans and advances rising 8% to $772.1m, while funds were invested in money market instruments, which showed a rise of 115% to $470.9m.

FCB Zimbabwe’s 19% contraction in PAT to $23m came after the functional currency adoption restatements. These restatements recognised a higher F23 profit than previously reported ($28.7m compared to $15.7m) and $15m lower in other comprehensive income. As a result, the restatements reduced closing net assets by $2m.

FCB Zimbabwe reported a strong rise in net interest income and the group onboarded 70 000 new customers in the year, with 80% signing up on the digital platform. However, the new ZiG currency was devalued by nearly 100% in September and there was organisational restructuring as FMBCH continued to realign the formerly Barclays Zimbabwe operation to the FMBCH model.

The FinX newswire, analysing FCB Zimbabwe’s results, said F24 was “a year of pruning – painful, intentional, and perhaps overdue. In doing so, FCB has laid a foundation not just for growth, but for sustainable, risk-aware relevance in Zimbabwe’s transforming financial sector.”

Commenting on the results, FMBCH Chairman, Terence Davidson, said; “We will continue to pursue prudent market share growth across all markets, while remaining open to expansion opportunities that align with our long-term growth strategy.”

United General Insurance (UGI) Limited has made a significant financial turnaround with profit after tax rebounding strongly to K2.168 billion from a loss of K0.326 billion in 2023, representing a 764% improvement.

In the just-released 2024 financial statement, signed by Chairperson Harold Jiya and Director Lester Tandwe, the company, also made substantial growth in insurance revenue, which increased by 33% to K10.628 billion, up from K7.991 billion in 2023.

The statement said the growth was driven by the successful acquisition of new business, reflecting the effectiveness of strategic initiatives aimed at expanding market reach.

“As a result, total equity rose by 143%, from K3.523 billion to K8.549 billion, bolstered by a new capital injection of K 2.795 billion.”

“Net investment income improved significantly, growing by 38% to K2.773 billion from K2.013 billion in the previous year. This was largely attributed to a more diversified and strategically optimized investment portfolio, which delivered enhanced returns.”

“Operational efficiency gains were evident in cost containment measures. Insurance service expenses declined by 26%, decreasing to K7.281 billion from K9.882 billion in 2023, underscoring the Company’s commitment to prudent cost management,” reads the statement in part.

According to the statement, UGI’s total assets increased by 41%, reaching K20.343 billion from K14.453 billion, while cash balances rose sharply by 129%, from K2.676 billion in 2023 to K6.120 billion.

The statement added that despite these positive developments, the company also faced cost pressures, with other and management expenses increasing by 47% to K1.387 billion, compared to K0.946 billion in the previous year.

“This was primarily driven by rising commodity prices, which placed considerable strain on the cost base,” reads part of the statement.

UGI, which transitioned from an associate to a subsidiary company of National Bank of Malawi (NBM), said it restructured its business model to be more sales-driven and customer-centric, positioning itself for sustainable long-term growth.

London Winners handed over a second  brand new Mazda Demio in the Win Big Promotion to a lucky winner, Emmanuel Simkonda.

Simkonda who is a businessman from Jenda in Mzimba district, received the monthly grand prize in Lilongwe at a function held at the Gateway Mall on Wednesday.

The Mazda Demio is worth K20 million.

In an interview, Simkonda said he was super excited with the vehicle, saying he had never dreamed of owning one, since his business is small.

“I am very happy to have won this vehicle; last month’s winner was my inspiration. Some people think my win was a fluke, but I can attest that anyone who participates has a chance to win. I don’t know how to drive yet, but I will learn using this very vehicle,” he said

Win Big Promotion ambassador Onesimus said he was happy that a lot of people are taking part in the competition which is a game changer to their lives.

“As the competition continues, I’m pleased to report that all is going well. Participants are winning various prizes, with the first grand prize being awarded to a woman and the second to a man from Mzimba.

“This competition is making a significant impact. Many people are working hard, and some who have never had the opportunity to have K1 million at once are finding success. Several winners are even receiving motorcycles, which can be used for transportation, while others are going home with vehicles.

“Winning a Mazda Demio, valued at K20 million, is no easy feat. Through the Win Big Promotion, we are striving to bridge the economic gap and help all Malawians grow financially,” he said

Other participants are also going home with weekly prizes such as K1 million, a motorcycle, a TV, and Samsung AO5 mobile phones.

The promotion is easily accessible and just needs people to dial 474# for personal tickets and *474100# for purchasing a ticket for a friend.

One of the country’s digital satellite television providers Azam TV has rewarded its customers various prizes in a competition dubbed Azam TV raffle draw.

The competition which ran for three months from 24th November 2024 to January 25th 2025 was aimed at appreciating subscribers who have been royal to the company.

Speaking during the prize presentation in Blantyre, general manager for the company Syed Kadarsha said he was impressed with the outcome of the competition.

Kadarsha added that 3,946 subscribers participated in the competition where 152 lucky customers won various prizes.

“The campaign has helped us to increase the customer base and built the spirit of loyalty and trust”. Said Kadarsha

“This has encouraged us to do more to ensure that we keep in touch with our customers”. He added.

A Mangochi based businessman Wilfred Nyirenda emerged as the grand winner in the competition after walking away with a whopping MWK 8.755 million in cash.

Nyirenda told journalist that the money will go towards boosting his business which almost went down.

Among the prizes which were given out during the raffle draw were motorbikes, plasma tvs, upright fridges and and cash.

During the competition, customers were required to pay a three months advance subscription for three bouquets namely, Azam Play, Azam Plus and Azam Pure.

The three months competition attracted subscribers from across the country from all the platforms.

NBM Capital Markets Limited (NBM Capital), an investment advisory services of National Bank of Malawi Plc (NBM)plc leading the TNM Issue of shares for cash transaction expected to raise MK30 billion for the company, have assured shareholders especially the minority ones not to despair with the dilution effects of their shareholding against the total issued shares by the company.

NBM Capital Chief Executive Officer Benson Jere, who is the lead advisor in the transaction said in an interview yesterday that although the share transaction involves only a few of the existing shareholders of TNM plc, their financial injection will have accruing benefits that will positively impact across all shareholders over a medium – term investment horizons.

He dispelled fears of the dilution effects to other shareholders especially the minority ones as the transaction benefits extremely outweighs the impact of such dilution.

“When a company issues new shares of same classes, shareholders face dilution effects. The share dilution only reduces the percentage ownership (% shareholding) of existing shareholders against total issued shares of the company. It however does not affect the capital or market value of its shareholders. Besides, it reduces the voting rights of other shareholders in an unlikely event such as disputes when the new shares are issued to limited subscribers like is the case here.”

“However, the overall benefits of this transaction outweigh any impact of dilution. It has a clear financial objective which if supported will significantly reduce the debt burden of the company. We envisage that a successful conclusion of the transaction would inevitably improve the financial position and profitability of the company and enhance shareholders’ value and dividend payout to all shareholders.”

“Based on empirical evidence, such transactions tend to enhance confidence and reliability of the company amongst investors thereby lead to capital appreciation through upswings in the stock price in the short to medium term horizons. Therefore, the dilution effects should not be much of a concern considering potential better days to emanate from the accruing transaction advantages and benefits which outweigh its effects,” explained Jere.

Jere also highlighted that there have been similar instances in the country where listed companies have issued additional shares for cash to specific investors.

He singled out FMB Capital Holdings Plc (FMBCH) who issued 122 million shares for cash in January 2019 to Old Mutual Investment Group Limited and funds under its management.

“The company raised about MK8.54 billion in new capital for its turnaround strategy,” said Jere adding that the investing public can track the glittering performance of the Bank since then.

He said the TNM issue for cash transaction has complied with legal requirements of the Companies Act of 2013 and the Malawi Stock Exchange (MSE) Listing Requirements.

TNM Plc has called for an Extraordinary General Meeting (EGM) in Blantyre on 2nd May 2025 to seek shareholders’ approval for the issuance of new ordinary shares to specific existing shareholders drawn from its share register, namely Press Corporation plc, Old Mutal Life Assurance Company and Nico Life Assurance Company to raise MK30 billion cash to significantly pay – off the company’s debt balances and other pressing obligations.

The move has received mixed reactions with some minority shareholders expressing fears of a potential dilution which the advisors share and downplay due to outweighing benefits.

“We strongly encourage shareholders to dwell much on the advantages and financial benefits that would accrue from the successful execution of the transaction itself and ignore the modest dilution effects which are heavily outweighed. It is important to highlight that shareholders shall neither lose their shares nor the capital value of their investments.”

“In fact, all shareholders will be holding better quality shares in value after the transaction as the company’s financial position will have been strengthened and its profitability enhanced through savings from debt repayment. What changes is only the relative ownership (% shareholding) percentage, due to the issuance of new shares to selected investors which will automatically increase the total issued shares of the company,” assured Jere.

He emphasised that a successful execution of the transaction will greatly improve the financial position and profitability of TNM plc thereby enhance stock price of the company over an appropriate investment horizon.

MSE Chief Executive Officer, John Kamanga confirmed that the transaction has complied with MSE Listing Requirements and has duly been approved by the Malawi Stock Exchange.

TNM Chief Executive Officer, Michael Herbert expressed his excitement as he is looking forward to a successful execution of the transaction.

He assured all shareholders that the proceeds from the transaction if approved at the EGM shall be used to restructure the balance sheet and pay down excessively expensive debt stocks to not only strengthen the financial position of the company but also unlock share value for all shareholders.

People’s Party (PP) president Joyce Banda has described the current trade war between Malawi and neighbouring Tanzania as very unfortunate, saying it is affecting a lot of women who do cross-border businesses.

Speaking at Chikowi Primary School in Zomba district where she conducted a political rally, the former president said the reciprocal ban from Tanzania will hit Malawians hard.

“Recently, Malawi announced that relief maize would be imported from Tanzania. Later, Malawi announced a ban on Tanzanian goods entering the country, meaning we cannot import bananas, chicken eggs, maize, and fertilizer. I don’t know where we will be producing fertilizer.

“In retaliation, Tanzania has also enforced a ban on Malawian agricultural imports. These include fertilizer, maize, and even vehicles carrying these goods from Tanzania. These vehicles cannot enter Malawi, and a lot of goods have already rotted. I have been in business for a long time; we don’t play with business. We need to follow the African Continental Free Trade Area (AfCFTA) guidelines, which promote the easy movement of goods from one country to another,” she said

AfCFTA is the world’s largest free trade area, created by the African Continental Free Trade Agreement. It aims to facilitate intra-African trade, boost economic integration, and attract investment across the continent. The agreement was signed in 2018 and officially launched in 2019, with trading starting on January 1, 2021.

Banda added; “if we talk about cross-border trade, I have been involved for several years. In 1994, I went to Chitipa where I found businesswomen struggling to export their goods to Tanzania through normal channels. I intervened on their behalf, and things changed. Now, we can’t destroy that”.

The ban, announced by Tanzania’s Agriculture Minister Hussein Bashe, is a retaliatory measure against trade restrictions imposed by Malawi and South Africa on Tanzanian agricultural products, including maize flour, rice, ginger, bananas, and maize.

Tanzania has also halted the transit of agricultural goods through its territory to landlocked Malawi and suspended fertilizer exports to the country, further straining trade relations.

NBS Bank plc has committed K10 million to support five small-scale and high impact projects undertaken by Corps Africa volunteers in the country.

The Bank’s Chief Finance Officer (CFO), Ernest Tembo announced the commitment at this year’s Corps Africa Pitch Day hosted by the Moroccan Kingdom Embassy in Lilongwe on Thursday.

Tembo said as a ‘Caring Bank’, NBS values the various projects volunteers are championing in the country as they benefit Malawians in different ways.

“We listened to the presentations on all the projects in the communities and all of them will have a major impact in the community. As NBS Bank, our theme this year is ‘We Care a Little More’ and caring a little more means working with people, projects, individuals or institutions that have major impact on lives in the communities. So, we are happy today there were projects on health, on businesses and others,” said Tembo.

Deputy Minister of Gender, Halima Daudi and Corps Africa Malawi chairperson Martha Kwataine, applauded NBS Bank and the volunteers for observing the need of the people in the rural areas.

In his remarks, Moroccan ambassador to Malawi Abdelkader Naji said he was impressed that they managed to secure funds for the volunteers from NBS Bank through the pitch day.

“Together with partners, we have raised something for the volunteers to embark on their projects which will benefit Malawians,” he said.

The pitch day saw five young Malawian volunteers namely Coreen Banda, Devlin Sapuwa, Harry Bvumbwe, Imran Chiposyo, and Chikondi Chisale presenting their project ideas in Mangochi, Mchinji, Chikwawa, Nsanje, and Lilongwe respectively.

The volunteers were recruited and trained by Corps Africa, which equipped them to engage local people of Malawian communities and facilitate small-scale, high-impact projects.