National Bank of Malawi (NBM), which bought 97.05 percent stake in Indebank Limited has conceded that the merger of the banks has come with negatives as customers from Indebank were taken on board without proper transition.
NBM closed all Indebank branches across the country and this created congestion in already full NBM branches and facing poor customer services.
Most Indebank clinets were getting attention from theor accounts relationship managers but now its seems they have just been put on board and dumped prompting them to consider closing accounts and open with other banks such as Standard Bank of Malawi, NBS Bank, FMB, Nedbank, Opportunity Bank, FDH Bank, Ecobank and CDH Investment Bank.
Cutomers complain of endless queues in and outside NBM banking halls and bank tellers’ attitudes towards customers, among others.
NBM board has since conceded that acquisition of Indebank has resulted in its financial perfomance for the half year period to be affected to a greater extened.
In a statement endorsed by NBM board Chairman, Mathews Chikaonda and Chief Executive Officer, George Partridge, he bank, which is the oldest in Malawi, just announced a profit after tax of 8.2 Billion Kwacha for the period ended June 30.
This is not much different from the MK8.1b that was realised during the same period last year.
According to the statement, the minimal showing had to do with the overhead costs that Indebank continued to incur when obtaining regulatory approvals in the course of the merger process.
National Bank also had to folk out 937 Million Kwacha to cater for severance pay for former employees of Inde.
It has since declared an interim dividend of MK6.44 per share to be paid at the end of September.
Last year, shareholders got only MK3.22 under the same period.
Before NBM bought Indebank Limited, government had 41.38 percent shares, Admarc Investment Holdings held 25.65 percent, Press Trust held 30 percent while employees held 2.95 percent.
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