FDH BANK LTD RECAPITALIZATION UPDATE

On 2 July 2015 FDH Financial Holdings Ltd (FDHFHL) signed a Share Sale, Purchase and Investment Agreement with the Malawi Government (Seller) through the Public Private Partnership Commission (PPPC) with regards to the acquisition of Malawi Savings Bank Ltd (MSB). Clause 10 of the Agreement contained Post-Completion Undertakings by FDHFHL. The undertakings included that FDHFHL:

  • Provide financial investment in the business and commit to the investment program
  • Recapitalize the bank to the required minimum levels by the Registrar of Financial Institutions on Basel II and liquidity requirements
  • Transfer commercial know-how, management expertise, technology systems and software
  • Invest in a more robust core banking system and Information Technology Infrastructure
  • Improve Infection ratio of the bank
  • Create an employee share ownership scheme to facilitate bank ownership by employees

Following the acquisition, an Integration Management Office (IMO), made up of external consultants led by EY South Africa, was established to assist Management, Shareholders and the Board of Directors with the smooth and timely integration of FDH Bank Limited and MS8, in accordance with contractual agreements with the Government of Malawi and best practice. The merger process was successfully completed by 30 June 2016 and this was followed by a Stabilization, Optimization and Rebranding phase inclusive of the creation of an Employee Share Ownership Scheme (ESOP).

FDHFHL is proud to inform all relevant stakeholders that all conditions have been met and any outstanding obligations will be satisfied by 30 June 2017 including the optimization and re-branding work.

FDH Financial Holdings Limited invested MWK5.1billion on the acquisition of Malawi Savings Bank Limited, MWK337.5 million on the ESOP Scheme, while the Integration, Stabilization, Optimization and Rebranding processes have cost FDHFHL MWK4.9 billion, with an additional MK400 million expected to be spent to 30 June 2017. A total of MWK10.7 billion (USD14.7 million) will have been spent on Acquisition, Integration, Stabilisation, Optimisation and Rebranding of FDH Bank Ltd by 30 June 2017.

Following a review of the bank, capital requirements as at 31 December 2016, FDH Financial Holdings Limited has on 31 March 2017 injected a total of MWK6.6 billion (USD9.1 million) in FDH Bank Limited. MWK1.1 billion of the MWK6.6 billion is on the restructuring of the Group that has led to FDHFHL acquiring 100% of FDH Money Bureau Limited from FDH Bank Ltd. The Balance MWK5.5 billion is direct equity injection. This is the first phase of the recapitalization of the Bank.

The second and final phase will be completed on 31 May 2017 through an additional capital injection of MWK5 billion ahead of the 30 June 2017 deadline set by the Registrar of Financial Institutions in Malawi.

FDH Financial Holdings Ltd will therefore inject a total of MWK11.6 billion (USD16 million) by 31 May 2017 in FDH Bank Ltd. The capital will enable the bank to comfortably comply with Basel II requirements and compete by continuing to offer innovative products on the market such as the recently launched unique FDH Mobile. In total, including acquisition, integration, stabilization, optimization and recapitalization, MWK26.7 billion (USD30.7million) will have been invested by 30 June 2017, repositioning FDH Bank as a key player on the Malawi banking market.

Discontinuation of Malawi Savings Bank Cheques

FDH Bank would like to inform its valued ex-Malawi Savings Bank (MSB) customers that their MSB cheque books will continue to be used until 30th November, 2016. We therefore request our ex-MSB customers to apply for FDH Bank cheques before the said date of 30th November, 2016. After this date, all MSB cheques books will no longer be accepted.

All our ex-MSB customers can apply for their cheque books in their branches across the country.

We will swap for FREE your current ex-MSB cheque books with the new FDH Bank Cheque books.

All customers will be required to bring their relevant identity documents when collecting the cheque books from the branches where they made their applications.

If you need any assistance you may contact us as follows:

Email: fdh@fdh.co.mw

Toll free: 51414 (from TNM and Airtel)

New Banking Hours

FDH Bank, in a continuing drive to assimilate its operations following the merger with Malawi Savings Bank, wishes to inform its valued customers and the general public that all former Malawi Savings Bank (MSB) branches will be opening at 8:00 am and closing at 4:00 pm, like FDH Bank branches.

FDH Financial Holdings announces the completion of merger of Malawi Savings Bank and FDH Bank … The merged Bank to be called FDH Bank

FDH Financial Holdings Limited, a leading financial services provider in Malawi, is pleased to announce completion of the merger between Malawi Savings Bank Limited (MSB) and FDH Bank Limited following a successful integration of the two entities. This merger has been approved by both the Competition and Fair Trading Commission (CFTC) and the Registrar of Financial Institutions and is effective 1st July 2016.

The entire FDH Family formally welcomes its previous customers from MSB who have already been on the FDH core banking system since the beginning of May 2016 to-date. Please share our joy as we welcome our valued customers.

Successful Implementation of New Core Banking System – T24 R14

Following an announcement that we made on 7th April 2016, FDH Bank sincerely thanks you our valued customers and the general public for your patience while we were implementing the change from the old T24 R10 core banking system to the new T24 R14.

FDH Bank inform its customers and the general public that the new banking system is now fully installed effective Monday 11th April 2016. All the services have been restored back to normal.

The new T24 R14 banking platform is a modern Banking system that is used by leading financial institutions globally. The successful implementation of this new platform will mean that FDH has capabilities to be able to introduce innovative products and services for our customers.

Having successfully migrated all our FDH Bank customers to this platform, we are now geared to move our Malawi Savings Bank (MSB) Customers from the current Rubicon banking system to this new platform. This process is expected to be completed in the coming days and our MSB customers will be informed accordingly.

FDH Bank sincerely thanks you our customers and the general public for supporting us during this process. Together, we are set to grow.

Change of FDH Bank Account Numbers

Following the successful implementation of the T24 R14 core banking system, FDH Bank would like to inform its valued customers that there will be some changes to the account numbers for the existing customers.

  • What has changed?
    1. The account numbering format has changed, though it remains a 13-digit account number. All Account numbers will start with a code ‘1’ followed by a 2-digit branch code then the account number.
    2. All existing account numbers will be changed to new account numbers, which have a new numbering format. This new account number will not have any resemblance to the old (current) account number.
    3. All new customerswill be given account numbers that are in the new account numbering format
  • What will happen to my old account number?
    1. All customers can continue using their current materials such as cheque books, ATM cards, etc. that bear the old account number. These will be replaced with the ones bearing the new account number at the time the customer was due to replace them
    2. When you present your transactions in the banking halls, the transaction will be accepted like it has been done before. Our staff assisting you will give you the new account number that has been allocated to your account in our new banking system.
    3. All your previous transactions on the account have not changed.
  • What will happen to internet Banking
    1. Customers who are on our internet banking platform (FDH Online), will be required to link their old account with the new account for them to proceed to use internet banking services. Instructions for making this change have been placed on the internet banking website.
    2. Our FDH Online customers can continue using the service as they have done before.

FDH Bank will provide the necessary support during this period of transition. If you need any further assistance, do not hesitate to contact your branch or any FDH Bank outlet near you.

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Umoyo House, No. 8 Victoria Avenue North, Blantyre, Malawi +2651820219 info@ fdh.co.mw