First Merchant Bank

History

FMB was founded in 1995 as a joint partnership between the 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. In the year 2000, FMB wholly acquired the Leasing and Finance Company. In 2008, FMB led a consortium that was granted a banking licence in Botswana, where a subsidiary of FMB, Capital Bank, trades. The bank further expanded in 2013, with the acquisition of the International Commercial Bank's businesses in Malawi, Zambia and Mozambique. FMB underwent a major transformation in 2010, when it geared toward the retail end of the market with hopes of expansion. During this period, FMB was able to revolutionise banking in Malawi with the introduction of various financial services, such as mobile banking and 'fast accounts'. During this period, the bank also underwent a face change, when it altered its logo and colours to attract a more retail clientele. The bank listed on Malawi's stock exchange in 2009, when almost 10% of its net shares were offered in the IPO. It now employs almost 1000 people, across nearly 40 branches and agencies around Malawi. FMB is widely regarded to be Malawi's third largest bank, of the 11 in operation and has an estimated 11% of market share.

Overview

The bank is a medium-sized financial services provider in Malawi. It offers retail banking services to individuals and corporate clients. As of December 2009, the bank's asset base was valued at approximately US$141 million, with shareholders' equity of approximately US$38 million. The stock of the bank is listed on the Malawi Stock Exchange, where it trades under the symbol: FMB.

First Merchant Bank Group

FMB owns either wholly or in part, five subsidiary companies, which together with the bank, form the First Merchant Bank Group (FMB Group). The Group is a mid-sized financial services conglomerate, serving communities in Malawi, Botswana, Zambia and Mozambique. As of December 2009, the Group's total assets exceeded US$300 million, with capital equity in excess of US$43 million. Group after-tax profits in 2013 exceeded US$15 million. Member companies of the FMB Group include the following:

1. First Merchant Bank - Blantyre, Malawi - The flagship of the group. Its stock trades on the Malawi Stock Exchange.
2. Capital Bank - Gaborone Botswana - FMB maintains 51% shareholding
3. Leasing and Finance Company of Malawi Limited - Blantyre, Malawi - FMB maintains 100% shareholding
4. FMB Forex Bureau Limited - Limbe, Malawi - FMB maintains 100% shareholding
5. First Capital Bank Limited - Lusaka, Zambia - FMB maintains 62% shareholding
6. Capital Bank Limited - Maputo, Mozambique - FMB maintains 70% shareholding

Ownership

The shareholders in the stock of First Merchant Bank include four (4) corporate entities and the general public. The detailed shareholding in the bank is outlined in the table below:

Branches

As of October 2010, the bank maintains branches at the following locations:

1. Main Branch - First House, Glyn Jones Road, Blantyre
2. Lilongwe Branch - Old Kandodo Building, Kamuzu Procession Road, Lilongwe
3. Mzuzu Branch - FMB Building, Orton Chirwa Avenue, Mzuzu
4. Limbe Branch - Churchill Road, Limbe
5. Capital City Branch - Chief M'belwa House, Robert Mugabe Crescent, Lilongwe
6. Zomba Branch - Kamuzu Highway, Zomba
7. Corporate Services Branch - Livingstone Towers, Glyn Jones Road, Blantyre
8. Chichiri Branch - Chichiri Shopping Mall, Kamuzu Highway, Blantyre
9. Crossroads Branch - Crossroads, Lilongwe
10. Dwangwa Branch - Illovo Sugar Company, Dwangwa
11. Kanengo Branch - Kanengo Auction Floors, Lilongwe
12. Limbe Auction Floors Branch - Limbe
13. Karonga Branch - Karonga
14. Mangochi Branch - Mangochi
15. Kasungu Branch - Kasungu
16. Mponela Branch - Mponela
17. Dedza Branch - Dedza
18. Mchinji Branch - Mchinji
19. Liwonde Branch - Liwonde
20. Mzimba Branch - Mzimba