News

Weekly Review - 31 AUGUST 2007
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Weekly Review - 30 MARCH 2007
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Weekly Review - 23 MARCH 2007
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Weekly Review - 2 MARCH 2007
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FMB - Press Release
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OUR COMMENTARY

• Low cost income ratio (currently lowest in the industry at 43,6% (2005:47,8%)
• Strong income growth with significant increase recorded in other income which will include fees and commissions, increase in fair value of investments and related dividend income.
• Significant growth in advances up 69.4% to K4,3 bln (2005: K2,6 bln) coupled with a 68% reduction in doubtful debt provision expense to K31mln from K97mln would suggest a quality book.
• 34,6% growth in deposits
• The directors forecast continued growth for 2007 on account of the growth in advances and deposits despite pressure on margins caused by declining interest rates.
• FMB directors propose to pay a second interim dividend (LDR: 16 March 2007). Dividend amount not yet disclosed. First interim dividend of 12t having been paid in August 2006.

Weekly Review - 23 FEBRUARY 2007
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Weekly Review - 10 NOVEMBER 2006
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SUNBIRD MANAGEMENT CONTACT - 24 OCTOBer 2006
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Weekly Review - 8 September 2006
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Weekly Review - 1 September 2006
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Research note on First Merchant Bank IPO - Malawi
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Packaging Industries Malawi Half Year Results
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Summary 2005 results for National Insurance Company Limited
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Half year results for National Investment Trust Limited
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Illovo Malawi summary results for 2005
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Press Corporation summary results for 2005
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Stanbic results for 2005
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NBM results for 2005
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Blantyre Hotels Limited results for 2005
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Tobacco sales to start March 13

The Tobacco Control Commission indicated that tobacco sales might start March 13 (flue) and March 20 (burley). They also project higher volumes and better quality leaf this year compared to last year. Est. 156.5 mln kg (2005:143.4 mln kg)- attributing this to good rainfall, subsidy on fertilizer and contract farming. Source: The Nation


EXCHANGE RATES:

Friday, 17th Feb 2006

Wednesday, 5th Oct 2005

Monday, 26th September 2005

Source: National Bank of Malawi

OUR COMMENTARY

It has been our view and that of most comentators that the kwacha has been overvalued for a greater part of last year. We think that of late the authorities have allowed it to adjust to market forces in readiness for the forthcoming tobacco season (and also for the next IMF review). We think once the Tobacco sales start in earnest, the kwacha might firm. What we cannot predict though is how far the current free fall is going to go (also fuelled by hoarders).

The past few weeks have also seen the Treasury bill interest rates reducing gradually. The 63 and 91 day Treasury and RBM bill rates having moved from an average of 24.2% levels at the close of 2005 to current 23.3% levels. The 182 and 273 days Treasury Bills having reduced from 24.4% to 22.5% in the same period. The Monetory Policy Committee reduced the LRR from 27.5% to 20% at the beginning of February. Banks responded by upping their deposit rates by, on average 2%.

We expect inflationary pressure to ease come March 2006 on the back of an expected bumper crop yield after very good rains and fertilizer subsidy.

These developments shall set the stage for a possible reduction of interest rates, we think. The past two reductions have tended to happen in June, this one might come sooner!

NICO HOLDINGS LIMITED SECOND INTERIM DIVIDEND
The Board of directors at its meeting held on 7th December 2005, approved a second interim dividend of MK100 million, (9.58 tambala per share), in respect of the financial year ending 31st Dec 2005 to all persons registered as shareholders as at 16th December 2005.
The register of members will be closed from 23rd December to 26th December 2005, both days inclusive and no transfers will be registered during that time.

Payment date for the dividend is Thursday, 29th December 2005.

Source: The Daily Times

MALAWI TELECOMMUNICATIONS GOES AT K3.6billion
The Privatisation Commission announced yesterday that 80% of Malawi Telecommunications Limited will go at K3.56 billion.
From the deal, K1.335 billion would go to the government while K2.225 billion would be invested in MTL.
The deal includes a 40% stake in Telekom Networks Malawi Limited, a mobile phone operator.
The buyers;Telecom Holdings Limited is a consortium comprising Press Corporation Limited ( contributing 65.4%); Old Mutual (25.1%); Nico Holdings Limited (6.25%); and technical partner Detecon (3.257%). The consortium partners shareholding in MTL will be prorated based on their contribution i.e. PCL 52.32%; OML 20.08%; NICO 5% DETECON 2.6%.

Under the agreement, the consortium will inherit K3.15 billion debt and immediately pay K1 billion in staff retrenchment costs.

The consortium has committed to raise the number of fixed lines from 57,000 currently to 84,000 in its first year and 104,000 in the second year.

Source: The Daily Times and The Nation

Malawi Government approves privatisation of Malawi Telecommunications Limited; the country's fixed telephone operator
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Minutes of the latest meeting of the Monetory Policy Committee for Malawi
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Packaging Industries Malawi Limited results for the year ended 30 Sept 2005
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MALAWI MONETORY POLICY COMMITTEE MINUTES
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NATIONAL INVESTMENT TRUST LIMITED
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ILLOVO SUGAR
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PROFIT WARNINGS:

SUNBIRD TOURISM LIMITED "SUNBIRD"
Sunbird Tourism Limited advises its shareholders and prospective investors that results for the (half) year of 2005, which are expected to be released to shareholders shortly, and forecast for December 2005 will be below prior year results.
The continuing depreciation of the Kwacha and the exchange loss on the Le Meridien Capital Hotel refurbishment loan coupled with escalating operational costs due to inflation are the main factors that have contributed to the declining bottom line.
There are however, signs of recovery in the second half of the year compared to the first half and we are confident that this performance can be sustained to the end of the year. The company would like to assure its shareholders that it will continue its efforts in cost control, revenue driving and enhanced commitment to high levels of service standards.
Maureen Kachingwe
COMPANY SECRETARY


BLANTYRE HOTELS LIMITED "BHL"

Blantyre Hotels Limited wishes to advise all its shareholders and prospective investors that, there will be a loss for the year ending 30 Sept 2005.
Despite an increase in number of rooms and operating profit against last year, the compnay's results have been affected by increases in expenditure levels coupled with high exchange losses and interest on foreign currency denominated loans for the new Protea Hotel Ryalls.
D Russel
BOARD CHAIRMAN


STANBIC BANK "STANBIC" INTERIM RESULTS

Profit before provisions 141mln (377mln H1 04) (311mln F2004)
Doubtful debt provisions 45mln (38 H1 04) (279 F2004)
Profit before tax 96mln (339 H1 04) 32 F2004)
PAT 65mln (233 H1 04) (21 F2004) restated
BEPS (t) 33 (117 H1 04) (11 F2004)
No dividend declared
Change in accounting policy and prior year errors:
"The bank prepares its financial statements in accordance with International Financial Reporting Standards (IFRS). On 1 Jan 2005, the bnk changed its policies in line with the revised international standards that came into effect. This led to prior period adjustments (+4 mln to earnings).
Management has further restated the prior year results to reflect an error made at the end of 2004. Certain foreign currency denomiated liabilities were not revalued at the closing exchange rate in accordance with accounting policies of the bank. Had this been done it would have led to a charge to the income statement of MK101 mln.