NATIONAL Bank of Malawi, the largest bank in Malawi, wants to acquire 75 per cent stake of Akiba Commercial Bank (ACB).
The acquisition, however, awaits the approval of Fair Competition Commission (FCC).
According to the FCC, it received a merge notification from NBM which specializes in commercial banking, ranging from wholesale, treasury and investment to personal and business.
“Based on share subscription agreement…the acquiring firm proposed to acquire aggregate of 75 per cent of stake in (ACB),” FCC said in a notice. ACB, according to FCC, is a full-fledged commercial bank.
The lender previously operated as a microfinance bank. The NBM, listed on Malawi Stock Exchange (MSE), is a leading commercial bank in Malawi with a number of subsidiaries, including a development bank.
An economist, Dr Hildebrand Shayo, said Malawi has a strong and robust financial sector system and the banks are now looking over the border to leverage their businesses.
“The bank (NBM) is very strong in Malawi and they are targeting Tanzania’s market. “So, by NBM seeking to acquire Akiba is an entry and conduit pipe to tap the country’s infrastructure projects…they cannot get these opportunities as a foreign bank,” Dr Shayo, who also works for TIB Development Bank, said.
The economist also said the bank wants a further visibility within the SADC region as a successful operation in Malawi. NBM listed on MSE on Thursday traded at 525.02 kwacha (1,575/06).
The largest Malawi lender, established in 1971, is owned by Press Corporation Plc 51.5 per cent, Old Mutual Group 25.1 per cent, members of the public 23 per cent and employees (ESOS) 0.4 per cent.
In 2018, NBM profit after tax had dropped by 16.6 per cent to 15.97 billion Kwacha (47.91bn/-) from 19.15 billion Kwacha (57.45bn/-) in 2017, largely due to a subdued loan book in the first half of the year.
Assets grew down to 25. 02 billion Kwacha (75.06bn/- ) from 27.09 billion Kwacha (81.27bn/).
During that period, the bank’s loan book grew by 21 per cent mostly in the second half of the year, mainly from the SME and personal sectors.
The bank has maintained its leadership position in leasing business with a market share of 65 per cent at the end of December 2018 after registering a portfolio growth of 55 per cent over the previous year.
