First Merchant Bank

First Merchant Bank (FMB)
Public
Traded as MAL: FMBCH
Industry Banking
Founded 1995
Headquarters Blantyre, Malawi
Key people
 Hitesh N. Anadkat
Chairman
Dheeraj Dikshit
Managing Director
Thomas J Kadantot
General Manager
Products Loans, Savings, Checking, Investments, Debit Cards, Credit Cards, Mortgages
Increase:US$ 97.8 million (2017)
Total assets US$1.16 billion (2017)
Number of employees
 1,000+
Website www.fmbmalawi.com

First Merchant Bank Limited, commonly known as First Merchant Bank (FMB), is a commercial bank in Malawi. It is licensed by the Reserve Bank of Malawi, the central bank and national banking regulator.[1]

Location

FMB Malawi maintains its headquarters, and main branch in Livingstone Towers, along Glyn Jones Road, in the city of Blantyre, the financial capital of Malawi.[2] The geographical coordinates of the bank's headquarters are: 15°47'08.0"S, 35°00'25.0"E (Latitude:-15.785556; Longitude:35.006944).[3]

History

FMB was founded in 1995 as a joint partnership between Malawi's Anadkat family and Prime Bank, of Kenya. It became Malawi's first private bank and was granted the third ever banking licence in Malawi. With focus on Malawi's corporate market, and with a large emphasis on service and customer relationships, FMB had a successful start and began to show profits after only two years of trading.[4]

In the year 2000, FMB wholly acquired the Leasing and Finance Company Malawi Limited, which has since been dissolved and merged into FMB Malawi. In 2008, FMB led a consortium that was granted a banking licence in Botswana, where a subsidiary of FMB, Capital Bank, trades. The bank expanded its regional footprint in 2013, with the acquisition of the ICB Banking Group's businesses in Malawi, Zambia and Mozambique.[5]

The bank listed on Malawi's stock exchange in 2009, when almost 10% of its net shares were offered in the IPO. In 2017, FMB announced that it was in the advanced stages of talks with Barclays Bank to acquire a controlling stake in its Zimbabwe operation. Also in 2017, it was announced that FMB had wholly bought out Opportunity Bank of Malawi.[6]

In December 2017, FMB de-listed its shares from the Malawi Stock Exchange (MSE). The value of FMB stock shares were acquired by the newly-created holding company, First Merchant Bank Capital Holdings (FMBCH), whose shares are now listed in the MSE.[7]

As of September 2017, FMB Malawi, was the third-largest bank in the country by assets and it enjoyed an estimated 16.8 percent market share.[8]

Overview

The FMB Capital Group is a medium-sized financial services provider in southern Africa, and has banking operations in Malawi, Botswana, Zambia, Mozambique and Zimbabwe. It offers retail banking services to individuals and corporate clients. As of December 2017, the bank's total asset base was valued at approximately US$1.16 billion, with group total income for the year at $97.8 million .[9] The stock of the group is listed on the Malawi Stock Exchange, where it trades under the symbol: FMBCH.[10]

FMB Capital Holdings

FMB Capital Holdings is the Mauritian-based entity that owns FMB Malawi, as well as its affiliated companies. The group owns either wholly or in part, seven subsidiary companies. The Group is a mid-sized financial services conglomerate, serving communities in Malawi, Botswana, Zambia, Mozambique and Zimbabwe. Member companies of the FMB Capital Group include the following:[9]

  1. First Merchant Bank - Blantyre, Malawi - The flagship of the group. Its stock trades on the Malawi Stock Exchange. FMB Capital maintains 100% shareholding
  2. Capital Bank - Gaborone Botswana - FMB Capital maintains 51% shareholding
  3. First Capital Bank Limited - Lusaka, Zambia - FMB Capital maintains 62% shareholding
  4. Capital Bank Limited - Maputo, Mozambique - FMB Capital maintains 70% shareholding
  5. Opportunity Bank Limited - Malawi - FMB maintains 100% shareholding
  6. Barclays Bank, Zimbabwe - FMB Capital maintains 42% shareholding. Its stock trades on the Zimbabwe Stock Exchange

Ownership

FMB is wholly owned by FMB Capital Holdings, which is registered in Mauritius and listed on the Malawi Stock Exchange. The detailed shareholding in FMB Capital Holdings is outlined in the table below:[11]

Shareholding in FMB Capital Holdings
RankShareholderPercentage Ownership
1Magni Holdings Limited32.8
2Prime Capital and Credit Limited11.24
3Prime Bank Kenya11.24
4Others44.73
Total100.0

Branches

As of April 2018, the bank maintained branches at the following locations:[12]

  1. Blantyre Branch: First House, Glyn Jones Road, Blantyre
  2. Capital City Branch: Chief M’mbelwa House, Robert Mugabe Crescent, City Centre, Lilongwe
  3. Limbe Branch: FMB Building, Churchill Road, Limbe
  4. Lilongwe Branch: Old Kandodo Building, Kamuzu Procession Road, Lilongwe
  5. Haile Selassie Branch: Old Stansfield Building, Haile Selassie Road, Blantyre
  6. First Corporate Service Branch: Livingstone Towers, Glyn Jones Road, Blantyre
  7. Mzuzu Branch: Orton Chirwa Avenue, Mzuzu
  8. Zomba Branch: Kamuzu Highway & Main Road, Zomba

In addition to the eight branches, the bank maintains another 24 agency banking locations, where the financial institution's services can be accessed.[12]

See also

References

  1. ↑ Reserve Bank of Malawi (25 April 2018). "List of Banks & Other Financial Institutions Supervised by the Reserve Bank of Malawi". Lilongwe: Reserve Bank of Malawi. Retrieved 25 April 2018.
  2. ↑ First Merchant Bank (25 April 2018). "First Merchant Bank Malawi Limited: Contact Us". Blantyre: First Merchant Bank Limited. Retrieved 25 April 2018.
  3. ↑ Google (25 April 2018). "Location of the Headquarters of the First Merchant Bank Malawi Limited" (Map). Google Maps. Google. Retrieved 25 April 2018.
  4. ↑ Nyasa Times Reporter (2 August 2013). "Malawi's First Merchant Bank Amasses K3.5 Billion in Profits for Six Months". Nyasa Times. United Kingdom. Retrieved 25 April 2018.
  5. ↑ CFTC Malawi (16 December 2013). "Takeover/Merger between First Merchant Bank and International Commercial Bank". Lilongwe: Competition and Fair Trading Commission of Malawi (CFTC Malawi). Retrieved 25 April 2018.
  6. ↑ Reuters Staff (28 June 2017). "Malawis First Merchant to buy micro lender Opportunity Bank". Reuters. Retrieved 25 April 2018.
  7. ↑ Chauwa, Alfred (20 September 2017). "FMB Shareholders Make Historic Malawi Stock Exchange Debut". United Kingdom: Nyasa Times. Retrieved 25 April 2018.
  8. ↑ Chirambo, Martha (15 September 2017). "RBM Nods to FMB, OIBM Merger". The Nation (Malawi). Blantyre. Retrieved 25 April 2018.
  9. 1 2 First Merchant Bank Malawi (30 March 2017). "First Merchant Bank Annual Report for the Year Ended 31 December 2016". Blantyre: First Merchant Bank Malawi Limited.
  10. ↑ Malawi Stock Exchange (25 April 2018). "Malawi Stock Exchange: Listed Companies". Blantyre: Malawi Stock Exchange. Retrieved 25 April 2018.
  11. ↑ First Merchant Bank (30 March 2017). "First Merchant Bank Capital Holdings: Top Shareholders As of 30 March 2017". Blantyre: First Merchant Bank of Malawi. Retrieved 25 April 2018.
  12. 1 2 First Merchant Bank (25 April 2018). "The Branch Network of First Merchant Bank Malawi Limited". Bantyre: First Merchant Bank Malawi Limited. Retrieved 25 April 2018.

Coordinates: 15°47′08″S 35°00′25″E / 15.78556°S 35.00694°E / -15.78556; 35.00694

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