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MALAWI SAVINGS BANK LIMITED
PRESENTATION TO TOBACCO INDUSTRY ANNUAL SEMINAR
AT
SUN ‘N’ SAND HOLIDAY RESORTMangochi
9th Sept 2013
2012
Out line
• Key facts about the bank• Locations • Products & Services• Seasonal Loans and crops funded• Risks and mitigations• Our continued interventions• Concluding remarks.
Historical Background for the bank• One of oldest banks in Malawi
• Traces its origin back to Post Office Savings Bank, formed in 1910
• Incorporated as a limited liability company in 1994
• Granted a banking license by Reserve Bank of Malawi in 1995
• Commenced banking operations in 1995
• Business conducted under supervisory authority of Reserve Bank of Malawi
• Largest bank by distribution network
Ownership
The Malawi Government wholly owns the bank (100% shareholding)
Shareholders’ equity, Assets and Liability (2012)
Ser. No
Item Values
1. Shareholders’ Equity
K 3.5 billion
2. Total Assets K39.6 billion
3. Deposit base K30.9 billion
Branch Network
Map of Malawi Branches & Agencies
• Branches: Bt, Limbe, LL,CC, Mzuzu, Ntcheu, Nkhota Kota,
Mchinji, Zomba, Nsanje, Mwanza, Chikhwawa
13 • Service Centres: Southern Region 20 Central Region 10 Northern Region 7
• Revenue collection points 16
• Total 66
• Forex Bureau 11 • All branches and service centres are on line
real time.• Compliment with three mobile banking vans.
Products & ServicesSer. No
Depository Lending Services
1. Savings & Term Deposits Deposit Backed Loans
Local Money Transfer ( Zafika)
2. Current Accounts Consumer Loans Western Union
3. Call Accounts Corporate Loans & Overdrafts
Forex
4. FCDAs Personal Loans & Overdraft
Revenue Collection
5. Seasonal Loans/ Warehouse Receipt Financing
ATM transactions
6. Working Capital Loans
Internet Banking
7. Asset FinanceProject FinancingPre-export financing
Sms alert
Seasonal Loans • MSB is actively associated with farmers• The bank is financing the following
crops: TobaccoSoya beansMaize seed GroundnutsRice
Trend in seasonal loans 2007- 2013
2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/20130
500,000,000
1,000,000,000
1,500,000,000
2,000,000,000
2,500,000,000
3,000,000,000
Trends in Agri-business financing
Trends in Agri-business financing
RisksSer Risks Mitigations
1. Weather- too little or too much rainfall can have a big impact on the crop.
Weather Indexed Insurance/crop insurance
2. Pests and diseases Plant certified seeds and practicing crop rotation.
3. Multiple registration of farmers (2 or 3 reg. numbers rendering stop order process not effective)
Fast track biometric registration system.
Prudent selection of growers at individual /club/ location levels
4. Side selling/ marketing of tobacco and sale on other growers’ reg. certificates.
Enhance delivery of tobacco to Auction Floors.Close monitoring at field level.Strength relationship with farmers.
5. Loan default A combination of the above
Way forward
• The IPS model builds confidence to the bank and motivates us for up scaling our exposures for industry sustainability.
• Adopt “know your supplier” (KYS)• Take pro-active role to collect tobacco from
farmers to Auction Floors.• AHL to assist banks to process stop orders upon
signing by the farmer.• Register stop order with Registrar where farmer
defaulted with another merchant/bank and now uses a different registration number.
Our continued interventions Apart from farmer financing,• The Bank has now a dedicated Agribusiness
Division with Relationship Managers.• Our network of branches and service centers
brings convenience to our farmers’ business needs i.e. timely banking throughout the country within the area of industry stakeholder operations.
• Personalized and customized services to a diverse range of customers.
• Competitive rates, terms and conditions.
Concluding remarks • We are spread throughout the country as part of our
effort to complement Government’s objective of financial inclusion. MSB as a Government Bank is complementing the government’s program of promoting agriculture for economic prosperity.
• We have been funding farmers growing cash crops such as tobacco, seed maize, groundnuts etc for many years but also, alongside tobacco we finance maize and tree planting for food security and reforestation.
THANK YOU