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| MSB profits double |
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by
Ephraim Munthali, 13 January 2005
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10:58:08
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Malawi Savings Bank (MSB) says unaudited accounts show that its profits after tax for the year ending December 31 will double to K60 million.
General manager Ian Bonongwe said in an interview in Blantyre the improved performance is largely due to the on-going commercialisation exercise which, he said, is now in its second phase.
“Our balance sheets are now healthy. We are continuing to register good profits and creating more shareholder value,” said Bonongwe.
Resting on an asset base estimated at K1.1 billion, the savings bank is wholly owned by the government.
It is currently on the Privatisation Commission’s divestiture sequence plan—a list of state entities lined up for privatisation.
Presently, it is being restructured under the World Bank’s Privatisation and Utility Reform Project (Purp) which basically aims at fattening state firms for sale.
As part of the reform process, the bank last February announced that it would close 147 agencies across the country in a commercialisation drive that will eventually lead to its privatisation.
MSB was initially operating 35 agencies on its own with 174 being manned by Malawi Post Corporation (MPC) staff.
It wanted to cut to 26 the number of agencies being run by postal staff in addition to three branches. According to Bonongwe, the closing exercise is now complete.
Having closed the 147 agencies, Bonongwe said the bank now enters the second phase and will be improving its information technology system to automate its processes.
He said MSB will articulate a business model which will hinge on whether to continue with the 26 agencies and three branches or shave off more.
“The business model will also spell out what sort of products we will be rolling out that should see each agency making money for the bank,” said the MSB boss.
Bonongwe added that the bank will develop its human resource base so that its capacity matches with the commercialisation drive. |
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