FMB declares K400 million bonus - 24/July/08

Directors of First Merchant Bank (FMB) have declared a K400 million interim dividend to its shareholders representing 18 tambala per share.

But this is without the contribution from their subsidiary in Botswana, Capital Bank Limited, which is not expected to beef up the profit package until 2009.

According to unaudited interim financial results published yesterday and signed by FMB's Sean O'Neill and Kashnath Chaturverdi the bonus would be payable by August 8.

This follows the bank's net profit of K800 million for six months ending June 30 this year, up from K700 million reaped during the same period last year.

The statement says the dividend will be paid to shareholders whose names will appear in the register at the close of business on Friday August 1.

FMB's balance sheet shows that its total asset base jumped from K15.9 billion in 2007 to K22.7 billion this year. "In a highly competitive market, the group achieved satisfactory growth levels with total assets and total deposits increasing by 14 percent and 6 percent respectively over the six month period.

Continued focus on pursuing quality lending opportunities has resulted in a 43 percent in our loans and advances portfolio and a 15 percent increase in our finance lease portfolio" FMB says.

In its outlook for the last half of the year FMB says it expects profits from its core banking activities to remain in line with the current achievements.

FMB entered the Malawi Stock Exchange (MSE) in June 2006 at K2.50 per share, but as of 24 July 2008, the stocks were trading at K11 each.

By Henry Mchazime, The Daily Times Newspaper

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