Another Malawi commercial bank confirms deeper staff cuts: NBS to close five branches

Malawi Stock Exchange-listed commercial bank, NBS Bank plc,  has confirmed  it’s laying off employees  as it plans to close five branches across the country following a slump in the number of transactions it handles.

NBS Bank to lay off staff

NBS Bank has been making losses until recently when it announced reducing loss by about 74 percent to K1.1 billion in the year ended December 31 2017 from K4.3 billion in 2016, according to the bank’s financial results.

The bank said the job cuts would hit its staff   as it plans to close five of its service centres  from March 18 as part of rationalisation of business operations in its transformation process.

The branches involved includes Chitipa, Ntchisi, Kamuzu International Airport, Riverside and Neno.

Customers  of the bank may continue transacting at any of its Banki Pafupi agents in the affected and surrounding areas.

NBS Bank plc  has since opened the voluntary exit window to reduce chances of retrenchment where interested employees are urged to apply for voluntary exit, according to a  letter issued on Tuesday and co-signed by the bank’s chief finance officer Vera Zulu and head of human resources Austin Thunde.

“As earlier communicated, the operations of the closed service centres will be merged into the closet service centres. The bank will then consider all applications made and the applicants will be notified of the outcome upon review,”  reads the letter as seen by Nyasa Times.

The development comes in the wake of National Bank, the country’s biggest commercial bank by assets and profitability, confirming it would lay off an undisclosed number of employees in what it termed voluntary retirement to reduce its operational expenses.

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Nyaphiri
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Nyaphiri

Eishhhhhhhh BANK yakuba iyi iyaaaaa

Zikomankhani
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Zikomankhani

There are two things which will save Malawian banks going forward: Focusing on SMEs and freezing executive pay and benefits until they reach realistic levels. Currently Malawi banks focus on big companies when it comes to loans and other products, but this sector is limited: There is a small number of big companies and they are scaling down their operations due to unfavourable economic conditions. However, there are many SMEs which are totally ignored; banks should find how best they can serve this important sector. I have been running an SME for the past twelve years and my bank (NBM)… Read more »

concerned citizen
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concerned citizen

Baibulo limanena kuti Masikuomaliza chuma chamaiko ambiri chizasokonezeka. nkhondo zizachuluka padziko. zibvomelezi ndi zina ngozi za zachilengedwa zizachitika. So, no wonder. When you see these things , know that the end is near.

Mesimadxi
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Mesimadxi

MCP’S POLICY IS ” KUGWETSA BOMA”. SHOOULD THEY PASS THEIR BILL” THAT SHOULDN’T BE ASSENTED to. Banks have never forced people to go and borrow money from them. Ngati Kusamba Dzozi overborrowed and is failing to repay that is his problem.
Amalawi tichenjele ndi otsutsa boma. Mfundo zao zoyendetsera BOMA akazalowa m’boma 2024 ndi zowononga. Osawapatsa mpata, osawavotera anthu akuba madzi Ku Lilongwe Water Board.

Truth Banda
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Truth Banda

Akunama awa afuna kupusitsa dziko ndi cholinga chakuti aphungu asakambirane za INTEREST CAPPING BILLS paja imagwa OIBM kudali ma Bill amenewa? KUSAMBA DZONZI and entire Mighty Opposition parties kambiranani mpaka BILL imeneyi idutse basi.

Prophet Mboro
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Mwanyanya kulanda manyumba despite the agreements at being 22%!When kwacha was devalued interest went up to 55%.Camp it and nail it at immoveable rate.

Prophet Lukau
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Betterment for the majority to survive than 2 or 4 banks’ceos

Patrick
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The UTM lady i hope you’ll not be part of the axing since you can’t even write a report,sisiiiiiii,shame on you

mtete
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mtete

Time was when you got K10. for every K100. the bank kept for you in a year. Of course the amount went up or down depending on prevailing circumstances. The point is you received something, nevertheless, for your savings.
Nowadays your K100. reduces every month such that you get less than that at the end of the year. In other words there is no longer any motivation to save money with the banks.

Is it, therefore, any wonder that the banks are feeling the pinch? The sources of their FAT BONUSES is disappearing by the month. Result? Retrenchment.

Wilson
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Wilson

Kenya is more developed than Malawi. In Kenya the average interest rate is 13% and the banking sector is doing fine. In Malawi when you borrow K1 million for example you will repay K1.8 million or more and yet they claim interest rate to be not more than 25%. Mathematically, this is not true.
Our banks can learn how our friends are doing it in SADC or other regions as long as we are on the same level of development/poverty, then, we can compare like with like

Central
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Central

Mumumva wina wake kuti: The closure of banks in Malawi is politicized ………….. and Chakwera and MCP are behind it………!!

Kwinaku mumva mzake, agogo Gondwe kuti Malawi’s economy is stable and growing……………………….!! Alamu kapumeni ndithudi……..!