The Directors of First Merchant Bank PLC (“FMB”) wish to provide an update to their shareholders and other stakeholders with respect to the agreement that was signed between FMB Capital Holdings PLC (“FMBCH”) and Barclays Bank PLC (BBPLC), pursuant to which FMBCH will acquire from BBPLC a controlling shareholding in Barclays Bank of Zimbabwe Limited (“BBZ”) (“the Transaction”).

Shareholders and the public are advised that the Transaction remains subject to certain statutory, regulatory and other approvals and, as such, they should continue to exercise caution and to consult their professional advisors when dealing in the shares of FMB.

Further details regarding this Transaction will be made available in the circulars of FMB and BBZ to be published in due course.

By order of the Board

Oswald Mtokale
Company Secretary

The post Further Cautionary Statement: Acquisition of shareholding in Barclays Bank Zimbabwe Limited appeared first on First Merchant Bank Limited (FMB).

FMB, at the beginning of this week, rolled out a ‘Back to School’ money transfer campaign under its Hello Paisa money transfer platform to encourage both its customers and non-customers to receive funds from South Africa through the Bank. During the Back to School campaign everyone who receives funds through Hello Paisa at FMB from as low as K28,000 going up will receive a free ‘back to school’ item.

The promotion is timely as schools especially at primary school level are this week resuming classes marking the beginning of a new academic year. Customers transacting on the Hello Paisa platform during the campaign who receive any amount from MK28,000, will receive a ‘back to school’ goodie ranging from pencil cases, writing materials, lunch boxes to back packs, as long as the transactions take place within the campaign period, and for as long as stocks remain available.

The campaign started on Monday (4th September) and will run up to 16th October 2017.

People are encouraged to send funds to Malawi from South Africa through Hello Paisa as it is does not give limitations on the amount of money one can send to Malawi; it is also the most secure and instant channel of ensuring that funds get to the rightful beneficiaries in a timely manner.

Anyone can receive funds through Hello Paisa at FMB on presentation of valid proof of identification; FMB has a wide network of branches and agencies through which beneficiaries can get Hello Paisa transactions processed.

FMB has been processing Hello Paisa transactions for more than two years now, during which period transactions have more than quadrupled in volumes.

The post Hello Paisa – FMB “back to school” campaign appeared first on First Merchant Bank Limited (FMB).

The Directors of First Merchant Bank PLC (“FMB”) wish to provide an update to their shareholders and other stakeholders with respect to the agreement that was signed between FMB Capital Holdings PLC (“FMBCH”) and Barclays Bank PLC (BBPLC), pursuant to which FMBCH will acquire from BBPLC a controlling shareholding in Barclays Bank of Zimbabwe Limited (“BBZ”) (“the Transaction”).

Shareholders and the public are advised that the Transaction remains subject to certain statutory, regulatory and other approvals and, as such, they should continue to exercise caution and to consult their professional advisors when dealing in the shares of FMB.

Further details regarding this Transaction will be made available in the circulars of FMB and BBZ to be published in due course.

By order of the Board

Oswald Mtokale
Company Secretary

The post Further Cautionary Statement: Acquisition of shareholding in Barclays Bank Zimbabwe Limited appeared first on First Merchant Bank Limited (FMB).

Shares in First Merchant Bank Capital Holdings (FMBCH) began trading on the Malawi Stock Exchange (MSE) yesterday, Monday, 18 September.

Shareholders of First Merchant Bank (FMB) were offered one FMBCH share for each FMB share held. The one-for-one offer was accepted by investors representing more than 97.6% of FMB’s ordinary shares.

In its pre-listing statement, FMBCH directors explained that FMBCH, which was incorporated in Mauritius in March 2016, would be the ultimate holding company of the FMB Group, and that its success would derive largely from the performance of the group’s banking and financial services assets in Malawi and in the other southern African countries where it operates. In June 2017 FMBCH was registered in Malawi as a foreign company.

FMBCH director Hitesh Anadkat thanked FMB investors for their “overwhelming” vote of confidence in the future of FMBCH and the board of directors’ strategy to “position FMBCH in an advanced capital market such as Mauritius”.

Anadkat said registering FMBCH in Mauritius meant that the company would, in future, be better placed to raise capital at competitive rates. “Being positioned in a market such as Mauritius means that our business will have greater access to the capital it will require to grow, to the benefit of investors, employees and communities.”

Anadkat stressed that Malawian shareholders would be among those benefitting the most from the listing. “No firm decision has yet been taken as to when – and where exactly – we will seek a dual listing for FMBCH but the likelihood, at this stage, is that, if this does happen, it will be in Mauritius, where the company is registered,” Anadkat said. “Under a dual-listing scenario, shares would be transferrable between the two exchanges. This would avoid the possible development of a ‘discounted market’ in Malawi, which would disadvantage local shareholders. A foreign listing would also raise our profile and attract new, international investors and customers.”

The FMBCH pre-listing statement confirmed that the group would continue all existing operations in all countries and locations, and that there would be no material changes to its business model. The listing would not have any material effect on employee numbers.

The group said the economic outlook in the various markets in which it operates would remain challenging and that the banking environment was likely to continue to be very competitive with ongoing pressure on margins.

“Despite this challenging operating environment, profitability is projected to grow due to the continuous process of business improvement, which the Group has embarked on.” The group added that growth in profitability in 2018 was expected on the assumption that acquisitions, including that of an effective 52.68% interest in Barclays Bank Zimbabwe (which still awaits some regulatory approvals), will be completed by the end of 2017.

Anadkat also pointed out there is still a window up to Friday 6th October 2017 for investors who have not responded to the exchange offer to do so.

The post FMBCH makes historic MSE debut appeared first on First Merchant Bank Limited (FMB).

Mauritius based FMB Capital Holdings Plc (FMBCH), the holding company for FMB Group, has announced the successful acquisition of a majority shareholding in Afcarme Zimbabwe Holdings (Pvt) Limited, the holding company for Barclays Bank of Zimbabwe Limited (BBZ) from Barclays Bank PLC (BBPLC). The transaction was concluded after all the Zimbabwean statutory and regulatory requirements were fulfilled. FMB Group also has banking operations in Malawi, Mozambique, Zambia and Botswana.

The move sees FMBCH acquiring a 42% shareholding in BBZ with Barclays PLC retaining a 10% stake (employees hold 15% through an Employee Share Ownership Trust and the remaining 33% are listed on the Zimbabwe Stock Exchange. Despite the change of ownership both FMBCH and Barclays have stressed that its ‘business as usual’ with no immediate changes anticipated to its service offering and network. For the first 12 months after conclusion of the deal, the bank will continue to operate under the Barclays brand with the FMBCH brand being introduced over a subsequent two-year period.

Speaking at the signing in London, FMBCH Director, Hitesh Anadkat said ‘This transaction marks a significant milestone in our steps to becoming a truly African bank offering financial solutions to the region. We share many of the same values as our colleagues at Barclays and we will continue to create meaningful value for all our stakeholders – customers, employees, investors and the Zimbabwean community at large.’ He added ‘For our regional customers our Zimbabwean operation will serve to further facilitate and enhance their cross-border trade operations through our expanded footprint.’

FMBCH is listed on the Malawi Stock Exchange where it owns and operates FMB Bank, The Leasing and Finance Company of Malawi Limited, a licensed financial institution engaged in deposit taking and asset finance, and FMB Capital Markets Limited, a licensed portfolio manager. In addition to its Malawi operations FMB Group also has interests in Capital Bank Botswana, Capital Bank Mozambique and First Capital Bank in Zambia with total assets (at the end of June 2017) of USD 496Mn. This transaction will be FMBCH’s first operation in Zimbabwe.

Commenting on the conclusion of the deal, FMB Malawi’s Chief Executive Officer Fernando Rodrigues said, ‘In practical terms we see this development as having a significant impact on our regional services. We’re looking forward to working with our colleagues in Zimbabwe and welcome the increased opportunity this presents to give our customers access to affordable, streamlined trade and investment services between the two countries and in the region.’

The move will see FMBCH double its asset base. For its last financial year the group had total capital of US$74 million and total assets of US$452 million. Barclays Zimbabwe had total capital of US$65 million and total assets of US$470 million. In 2016/17 the FMB group recorded US$12.8 million net profit after tax and Barclays Zimbabwe a net profit after tax of US$10.4 million.

This transaction follows the recent acquisition of Opportunity International Group’s Malawi operations, Opportunity International Bank Malawi (OIBM) by FMBCH’s subsidiary FMB Malawi.

About FMB Capital Holdings Plc

FMBCH is a banking group committed to innovation, customer service and sustainable value creation for investors, employees and other stakeholders through its operations in both the commercial/corporate and retail sectors which it serves in Malawi, Botswana, Zambia Mozambique and Zimbabwe. It and its associates employ a combined 1,800+ people through 700+ physical contact points including offices, branches and ATMs.

In 2016/17 FMBCH reported total income of US$48 million and a return on equity of 23%. Customer deposits amounted to US$311 million and loans and advances to US$181 million. Founded in 1995, the group remains highly liquid and enjoys long-standing partnerships with respected organisations including the European Investment Bank, the International Finance Corporation and USAID as well as several of the world’s other leading development finance institutions. Correspondent banks include Citibank, Deutsche Bank, ABSA and Standard Bank. The Global Credit Rating Company has consistently, over 10 years, given a long-term rating of A+ and a short-term rating of A1 to FMB Malawi, the group’s flagship operation.

FMBCH is a public limited liability company incorporated in Mauritius and is listed on the Malawi Stock Exchange.

Above picture
Francesco Ceccato, Group Head Barclays Corporate Development and Hitesh Anadkat, Director , FMB Capital Holdings (right) concluding FMB Capital Holdings’ successful acquisition of Barclays Bank Zimbabwe in London on Tuesday

The post FMBCH – Barclays Zimbabwe deal set to go ahead. appeared first on First Merchant Bank Limited (FMB).

FMB Bank (FMB) has confirmed that it has received approvals from the Reserve Bank of Malawi and the High Court to proceed with its acquisition and merger of Opportunity International Bank Malawi (OIBM). This follows an agreement reached in June between FMB and OIBM in which FMB acquired 100% ownership of the micro lending institution. It comes soon after FMB’s parent company FMB Capital Holdings plc completed its acquisition of Barclays Bank of Zimbabwe.

The deal means that OIBM’s 400 000+ customers will soon become customers of FMB and OIBM will cease operations. Group Managing Director of FMB Capital Holdings plc, Dheeraj Dikshit said, ‘With all approvals now in place we will shortly commence the process of integrating the operations of both banks. Our operating systems are extremely robust, reliable and adaptable and we have taken every step to ensure that the integration process is seamless with little to no disruption to normal services for both OIBM and FMB customers.’

In addition to its significantly increased customer base the acquisition will also add another eight branches to FMB’s network while OIBM’s remaining branches will merge into FMB branches.

Director of FMB Capital Holdings plc, Hitesh Anadkat commented, ‘This is an exciting development for the bank and we welcome our new customers to FMB. We look forward to continuing the work done by OIBM in promoting financial inclusion to all Malawians. At the same time, we believe that this acquisition will benefit our new customers by giving them access to a broad range of financial products, committed customer service and an advanced operating infrastructure.’

Anadkat continued, ‘FMBCH and its subsidiaries are on a growth trajectory. Our recent acquisitions both here in Malawi and in Zimbabwe are directly in line with our regional expansion strategy and can only be of benefit to all our stakeholders – investors, customers, staff and the communities in which we operate.’

According to FMB the actual migration of OIBM customer accounts to FMB’s operating system will take place from close of business on 3rd November with OIBM customers having access to their new FMB accounts on 6th November.

About FMB Bank

First Merchant Bank Limited (FMB) is a subsidiary of FMB Capital Holdings plc (FMBCH) and is registered as a commercial bank under the Banking Act 2010. FMBCH is a public limited liability company incorporated in Mauritius and is listed on the Malawi Stock Exchange (MSE).

FMB offers a broad range of financial services to both corporate and personal customers with a branch network extending throughout Malawi.

Media enquiries
We are always delighted when the media take an interest in our business and always strive to answer your questions promptly and as fully and transparently as possible. To get in touch, please contact [sylvia.mataka@fmbmalawi.com] For more information on the FMB group visit http://www.fmbmalawi.com/

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