It’s now official, government has sold Malawi Savings Bank (MSB) sold at K9.5bn ($21.1 million) while Indebank has been sold at K6.7bn ($14.9 million).
MSB has been sold to FDH Financial Holdings Limited whose chief executive officer is Thom Mpinganjira.
The signing ceremony toook place on Thursday in the capital Lilongwe which saw Finance Minister Goodall Gondwe sigining on behalf of government and Mpinganjira as the new owner.
Malawi government now holds only 25% shares in MSB while FDH Holdings has 75%.
President Peter Mutharika said in a statement that government has sold the banks after listening to public debate and based on powers conferred on him by the Constitution.
“The general public is , therefore, assured that the sale of the government shares in MSB shall not, in any way, result in closures on any branches currently operating throughout the country,” said a statement issued by President Mutharika’s press secretary Gerald Viola.
The new MSB owner Mpinganjira also assured that no branch will be closed neither will employees lose their job.
He said that was part of the bidding requirement.
Public outcry and parliament forced President Peter Mutharika to suspend the sale of MSB which had reportedly been weighed down by bad loans.
Reports indicate MSB posted a pre-tax profit of K2.5 billion (US$6 million) between January and May 2015.
MSB has posted a 221 percent increase compared to the same period last year when profit before tax was K773 million (US$2 million).
The bank’s unaudited management accounts ending May 31 2015, show that MSB has made a consolidated pre-tax profit of K2.5 billion against a budget of K1.1 billion (US$2.4 million), beating the target by 126 percent.
The MSB management accounts report also show that MSB Forex Bureau, a wholly owned subsidiary of the bank, made a pre-tax profit of K186.4 million (US$414 222) against a budgeted pre-tax profit of K228.4 million (US$507 556).
In the past five years the bank only made a loss of K1.9 billion in 2014.
MSB has 74 points of representation across the country with a workforce of about 600.Follow and Subscribe Nyasa TV :