The Registrar
of Financial Institutions
ANNUAL REPORT 2019
The Registrar of Financial Institutions | ANNUAL REPORT 2019 | The Registrar of Financial Institutions | ANNUAL REPORT 2019 | |||
2 | 3 |
TABLE OF CON TEN TS
REGISTRAR'S FOREWORD | 8 | 4.9 | On-Site Prudential Examinations | 30 | 7. | MICROFINANCE SECTOR | 44 | 8 | CONSUMER PROTECTION | 54 | ||
EXECUTIVE SUMMARY | 10 | 4.10 | Employer Pension Compliance | 7.1 | Sector Overview | 44 | 8.1 | Overview | 54 | |||
Inspections | 30 | 8.2 | Complaints Handling | 54 | ||||||||
1. | INTRODUCTION | 12 | 4.11 | Remittance of Pension Contributions | 7.2 | Deposit taking Microfinance | 44 | 8.3 | Market Conduct Supervision | 55 | ||
Enforcement | 30 | 7.2.1 | Assets and Liabilities | 44 | 8.4 | Financial Literacy | 55 | |||||
2. | THE BANKING SECTOR | 14 | 4.12 | Pension Complaints | 30 | 7.2.2 | Capital Adequacy | 45 | 8.4.1 Highlights of Financial Literacy | |||
2.1 | Sector Overview | 14 | 4.13 | Pension and Insurance Awareness | 7.2.3 | Asset Quality | 46 | Activities implemented | 55 | |||
2.2 | Structure of the Banking Sector | 14 | Week | 31 | 7.2.4 | Earnings and Profitability | 47 | 8.4.2 National Financial Literacy | ||||
2.3 | Changes in Assets and Liabilities | 15 | 4.14 | Centralised National Pension | 7.2.5 | Liquidity | 47 | Strategy (2020-2024) | 56 | |||
2.4 | Capital Adequacy | 17 | Database Project | 31 | 7.3 | Non-deposit taking Microfinance | 47 | |||||
2.5 | Asset Quality | 17 | 7.3.1 | Assets and Liabilities | 47 | 9. | ANTI-MONEY LAUNDERING | 57 | ||||
2.6 | Earnings | 18 | 5. | GENERAL INSURANCE | 32 | 7.3.2 | Capital Adequacy | 48 | 9.1 | AML/CFT Offsite Surveillance | 57 | |
2.7 | Liquidity | 18 | 5.1 | Sector Overview | 32 | 7.3.3 | Asset Quality | 49 | 9.2 | On-Site Examinations | 57 | |
2.8 | On-Site Examinations | 19 | 5.2 | Premium Income | 32 | 7.3.4 | Profitability | 49 | 9.3 | Mutual Evaluation Assessment | 57 | |
5.3 | Claims Experience | 33 | 7.3.5 | On-site Examination | 49 | |||||||
3. | CAPITAL MARKETS | 20 | 5.4 | Underwriting and Operating | 7.4 | Financial Cooperatives | 49 | 10. | LEGAL AND REGULATORY | |||
3.1 | Sector Overview | 20 | Performance | 34 | 7.4.1 | Overview | 49 | DEVELOPMENTS | 58 | |||
3.2 | The Stock Market | 20 | 5.5 | Assets and Liabilities | 35 | 7.4.2 | Assets and Liabilities | 50 | 10.1 | Overview | 58 | |
3.3 | Stock Brokerage | 21 | 5.6 | Liquidity | 37 | 7.4.3 | Financial Structure | 50 | 10.2 | Laws and Regulations | 58 | |
3.4 | Funds Management | 22 | 5.7 | Capital and Solvency | 37 | 7.4.4 | Capital Adequacy | 51 | 10.3 | Licensing, Mergers and Acquisitions 58 | ||
3.5 | Unit Trust Operations | 24 | 5.8 | Reinsurance | 38 | 7.4.5 | Asset Quality | 51 | ||||
3.6 | On-Site Examinations | 24 | 5.9 | On-Site Examinations | 38 | 7.4.6 | Earnings | 51 | 11. | SUPERVISORY FUNDS | 59 | |
7.4.7 | Liquidity | 52 | ||||||||||
4. | PENSION SECTOR | 25 | 6. | LIFE INSURANCE | 39 | 7.4.8 | Membership | 53 | 12. | APPENDICES | 60 | |
4.1 | Sector Overview | 25 | 6.1 | Sector Overview | 39 | 7.4.9 | On-site Examination | 53 | ||||
4.2 | Pension Sector Assets | 25 | 6.2 | Composition of the life insurance | 13. | LIST OF LICENSED MARKET PLAYERS | ||||||
4.3 | Investment Performance of Pension | sector | 39 | AS AT 31ST DECEMBER 2019 | 74 | |||||||
Fund Assets | 26 | 6.3 | Capital and Solvency | 39 | ||||||||
4.4 | Asset Portfolio Mix | 26 | 6.4 | Assets and Liabilities | 39 | |||||||
4.5 | Pension Contributions | 27 | 6.5 | Earnings | 40 | |||||||
4.6 | Coverage - Pension Sector | 6.6 | Premiums | 40 | ||||||||
Membership | 28 | 6.7 | Reinsurance | 41 | ||||||||
4.7 | Administration and Investment Fees 29 | 6.8 | Underwriting Experience | 41 | ||||||||
4.8 | Payment of Pension Benefits | 29 | 6.9 | On-Site Examinations | 42 |
4 | 5 |
list of tables | list of FIGURES | ||
Table 2.1: Ownership Structure of Commercial Banks | 14 | Figure 2.1: Banking Sector Capital Adequacy Ratios | 17 |
Table 2.2: Assets and Liabilities of Banks | 15 | Figure 2.2: Ratio of Non-Performing Loans to Gross Loans and Leases for Banks | 18 |
Table 2.3: Distribution of Loans by Sector | 16 | Figure 2.3: Liquidity Ratio for Banks | 19 |
Table 3.1: Stock Indices Trends | 22 | Figure 3.1 Stock Indices Trends | 21 |
Table 3.2: Source of Funds under Management | 23 | Figure 3.2: Funds under Management | 23 |
Table 3.3: Income and Expenses for Fund Managers | 24 | Figure 3.3: Unit Trusts Funds Growth | 24 |
Table 4.1: Expenses for Pension Funds | 29 | Figure 4.1: Asset of Pension Funds | 25 |
Table 4.2: Pension Benefits Paid | 29 | Figure 4.2 Asset Composition for Pension Funds | 26 |
Table 5.1: Insurance Premium for General Insurers by Class of Business | 33 | Figure 4.3 Annual Pension Contributions | 27 |
Table 5.2: Underwriting and Operating Results for General Insurers | 35 | Figure 4.4: Membership under the National Pension Scheme | 28 |
Table 5.3: Assets for General Insurers | 36 | Figure 5.1: Net Claims Incurred by General Insurers by Class of Business | 34 |
Table 5.4: Liabilities for General Insurers | 36 | Figure 5.2: Capital and Solvency for General Insurers | 37 |
Table 6.1 Asset and Liabilities of Life Insurance | 40 | Figure 5.3: Gross Premium Written vs. Reinsurance Premium Ceded (General Insurers) | 38 |
Table 6.2: Number of Individual Life and Group Life Policies | 42 | Figure 6.1: Gross Premium for Life Insurers | 41 |
Table 7.1: Assets and liabilities for Deposit Taking Microfinance | 45 | Figure 6.2: New Life Insurance Policies Underwritten by Life Insurers | 42 |
Table 7.2: Earnings and Expenses for Deposit Taking Microfinance | 47 | Figure 7.1: Capital Adequacy for Deposit Taking Microfinance | 46 |
Table 7.3: Assets for Non-Deposit Taking Microfinance | 48 | Figure 7.2: Ratio of Non-performing Loans to Gross Loans and Leases | 46 |
Table 7.4: Asset and Liabilities for the Financial Cooperatives Sector | 50 | Figure 7.3: Selected Assets and Liabilities for Financial Cooperatives | 50 |
Table 7.5: Financial Soundness Indicators for Financial Cooperatives | 51 | Figure 7.4: Income, Expenses and Surplus/Deficit Trends for Financial Cooperatives | 52 |
Figure 7.5: Financial Cooperatives Membership | 53 | ||
Figure 8.1: Number of Complaints Received Per Sector | 54 | ||
Figure 8.2 Composition in Number of Complaints Resolved | 55 |
6 | 7 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
The Registrar of Financial Institutions ANNUAL REPORT 2019
REGISTRAR'S FOREWORD
In a bid to ensure that the interests of the general public are safeguarded at all times through maintenance of the stability of the financial sector in Malawi, my office, as mandated by the Financial Services Act 2010, conducted prudential as well as market conduct supervision of the financial sector during the year. This report presents a summary of the key activities conducted by my office in 2019. In addition, the report reviews the performance of the financial sector and risks to financial system stability that prevailed in 2019.
The report also outlines the legal and regulatory framework reforms undertaken during the year. These reforms were aimed at enhancing the supervisory mandate of the Registrar as well as the potential of the sector in contributing to the overall
economic development of the country.
The year 2019 was favourable to the financial sector as it operated in a stable and resilient domestic macro-economic environment. Gross Domestic Product registered an estimated growth of 5.0 percent in 2019 from 4.0 percent recorded in 2018. The improved economic outturn in 2019 was largely attributed to favorable weather conditions experienced in the 2018/19 agricultural season, which led
to increased agricultural crop production yield. Reserve Bank of Malawi continued to manage inflationary pressures in
the year through tight monetary policy stance as well as a stable exchange rate. Headline inflation remained largely in single digit averaging 9.4 percent in the year, which was slightly above 9.2 percent recorded in 2018. The stability in inflation allowed the monetary authorities to reduce the monetary policy rate to
13.5 percent in 2019 from 16.0 percent in 2018. In light of the reduction in policy rate and introduction of reference rate in September, 2019, commercial bank's base lending rates declined to 12.5 percent from an average of 24.8 percent in 2018. The financial sector was also supported by the stability of the exchange rate of the Malawi kwacha which closed the year at MK738.87 per US dollar.
Riding on the stability of the macroeconomic environment, the sector's performance was satisfactory as all
institutions were generally sound and stable during the year. The banking sector was well capitalised and profitable. Assets and membership of the pension sector grew by 22.5 percent and 6.4 percent, respectively. Similarly, both general and life insurance sectors gross premiums grew by 13.4 percent to MK54.6 billion and by 20.1 percent to MK35.8 billion, respectively. The performance of the microfinance sector was also satisfactory as it registered growth in assets and profitability.
Meanwhile, my Office continued to strengthen the legal and regulatory framework for the financial sector through issuance of new and revised directives in 2019. A total of seven directives were issued in the year.
DALITSO KABAMBE (PhD)
REGISTRAR OF FINANCIAL INSTITUTIONS
8 | 9 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
The Registrar of Financial Institutions ANNUAL REPORT 2019
E X EC U TIVE SUMMARY
The Malawi financial sector continued to be resilient during the year 2019 supported by solid economic activity resulting from favourable weather and benign macroeconomic conditions. The sector's performance was satisfactory as all institutions were generally sound and stable during the year.
The banking sector was well capitalised with average core and total capital ratios at
17.0 and 21.0 percent, which were above the regulatory requirement of 10 and 15 percent, respectively. Similarly, the sector was adequately liquid at 58.9 percent against the prudential benchmark of 25 percent. In addition, the sector continued to be profitable registering a significant growth in aggregate after tax profit of MK59.2 billion from MK43.7 billion in 2018. Total net assets increased
by 13 percent to MK1,890.2 billion during the year due to increase in loans as well as growth in investments. This notwithstanding, credit risk was slightly elevated as non- performing loans (NPLs) ratio remained above the regulatory requirement coupled with
inherent economic sector concentration.
Malawi's capital market continued to be bullish during the year 2019 as reflected in the positive return of the Malawi All Share Index (MASI), albeit moderately when compared to the prior year return. On the primary markets, one company listed on the equity market while four Treasury Notes and two Corporate Notes were listed on the debt market in 2019. However, one Treasury Note matured during the year. The equity market remained the only active secondary market on the exchange
as no single secondary trade was registered on the debt market in 2019. All brokerage firms registered profitability in 2019 on account of good turnover performance of the stock market. Similarly, the investment management sector registered an increase in profitability and continued to flourish on the backbone of steady inflow of funds from life assurance companies and pension funds.
Pension sector assets grew by 22.5 percent to MK878.1 billion on account of contributions and investment income. This growth was,
however, the lowest since the introduction of the Pension Act in 2011. In terms of membership, the sector registered growth rate of 6.4 percent to 431,897 members during the year.
The general insurance sector grew in terms of total assets, premium written and profitability. Total assets grew by 12.1 percent to MK55.8 billion while premium written grew by 13.4 percent to MK54.6 billion. Nonetheless, the sector continued experiencing solvency and liquidity vulnerabilities owing to inadequate capital in a few insurers and high insurance receivables across the sector.
The life insurance sector assets continued to grow on account of increases in gross premiums and investment income. Gross premium grew by 20.1 percent to MK35.8 billion. In addition, the sector registered an after tax profit of MK8.5 billion, albeit lower than MK9.1 billion registered in December 2018. In terms of solvency, all but one life insurer met the minimum requirements at
company level while two life insurers failed to meet the solvency requirements at life fund level.
The performance of the microfinance sector was satisfactory in 2019. The sector recorded aggregate profitability of MK3.2 billion. In addition, asset quality and liquidity were within the industry benchmark. Aggregate assets for the sector increased to MK43.8 billion in December 2019 from MK38.1 billion in December 2018.
During the year, the Registrar carried out other supervisory activities on financial institutions to assess their business conduct and practices including matters relating to Anti-Money Laundering and Combating
of Financing of Terrorism, market conduct examination and mystery surveillances of financial institutions. In addition, the Registrar continued to undertake various financial literacy initiatives aimed at bolstering financial consumer awareness.
1 0 | 1 1 |
The Registrar of Financial Institutions | ANNUAL REPORT 2019 | The Registrar of Financial Institutions | ANNUAL REPORT 2019 |
1. IN TRODUCTION
Pursuant to section 18 of the Financial Services Act, 2010, the Registrar hereby presents the 2019 Financial Institutions Supervision Annual Report. The report provides an assessment of the performance of the financial sector and key regulatory and supervisory activities carried out by the Registrar during the year. In addition, the report outlines financial literacy activities undertaken in the year.
The rest of the report is organized as follows: Sections 2 to 9 analyse developments in the following sectors: Banking, Capital Markets, Pension, General Insurance, Life Insurance, Microfinance, Consumer Protection and Anti Money Laundering, whilst sections 10 and 11 outline developments in the legal and regulatory framework and supervisory levies, fees and charges, respectively.
1 2 | 1 3 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
2. THE BANKING SECTOR
2.1. Sector Overview
The banking sector was generally sound and stable as the sector was well capitalised, liquid and profitable in 2019. This notwithstanding, credit risk was slightly elevated as non-performing loans (NPLs) ratio remained above the regulatory requirement coupled with inherent economic sector concentration. Total assets increased during the year due to increase in loans as well as growth in investments. Meanwhile, the total number of banks operating in the country remained at nine.
2.2. Structure of the Banking Sector
There were no new entrants or exits in the banking sector in 2019, as such number of banks operating remained unchanged at nine (Table 2.1). However, the Registrar granted approval for one bank to be acquired by another existing bank in the market. Five banks were domestic privately-owned and comprised 57.4 percent of total net assets in 2019 (similar to the 2017 position) from 56.4 percent in 2018. The remaining four banks were foreign owned and comprised 42.6 percent of total net assets in 2019 from 43.6 percent reported in 2018.
Two banks continued to dominate the sector with a combined market share of 46.1 percent for both total assets and deposits as at December, 2019. Further, these two banks also accounted for
56.2 percent of total loans and 58.3 percent of total equity capital; a reduction in concentration from 58.1 percent and 60.0 percent respectively, as recorded in 2018.
With regard to the branch network, the banking system had 110 branches in 2019 from 106 in 2018. Similarly, the number of agencies, kiosks and vans across the country increased to 120 from 118 in 2018 (Appendix table 12.1) and Auto Teller Machines increased by two to 496 in 2019.
Table 2.1: Ownership Structure of Commercial Banks as at December 2019
Bank Ownership | % of Total Assets | Number of Banks | ||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2015 | 2016 | 2017 | 2018 | 2019 | |||
Domestic Private owned | 56.5 | 59.7 | 57.4 | 56.4 | 57.4 | 5 | 5 | 5 | 5 | 5 | ||
Domestic public owned | 6.8 | 0.0 | 0.0 | 0.0 | 0.0 | 2 | 0 | 0 | 0 | 0 | ||
Foreign owned | 36.7 | 40.3 | 42.6 | 43.6 | 42.6 | 5 | 5 | 4 | 4 | 4 | ||
Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 12 | 10 | 9 | 9 | 9 |
Source: Reserve Bank of Malawi
The Registrar of Financial Institutions ANNUAL REPORT 2019
2.3 Changes in Assets and Liabilities
Total net assets of the banking system increased to MK1,890.2 billion as at December, 2019 from MK1,670.5 billion in December, 2018 (Table 2.2). The development was largely anchored by growth in loans and leases of 24.2 percent to MK609.9 billion and investments by 16.4 percent to MK791.7 billion in December, 2019. Growth in total loans and leases was mainly on account of an increase in lending to private corporations by MK69.0 billion, individuals and households by MK33.3 billion, and parastatals by MK25.6 billion as at December, 2019. On the other hand, increase in investments was attributed to growth in Treasury Bills of MK40.5 billion to MK388.6 billion and a significant growth in Treasury Notes of MK36.0 billion to MK58.5 billion in December, 2019.
Investments constituted the highest proportion of net total assets at 41.9 percent from 40.7 percent, in 2018 while total loans and leases constituted 32.3 percent from 29.4 percent in 2018 (Table 2.2).
Table 2.2: Assets and Liabilities of Banks (MK'bn)
2015 | 2016 | 2017 | 2018 | 2019 | |||
Type of Assets | |||||||
Cash and due from other Banks | 210.6 | 276.3 | 315.2 | 234.4 | 177.8 | ||
Securities and Investments | 295.6 | 386.1 | 615.8 | 680.3 | 791.7 | ||
of which | |||||||
Treasury Bills | 142.3 | 190.9 | 260.6 | 348.1 | 388.6 | ||
RBM Day Bills | 6.4 | - | - | - | - | ||
Money Market Deposits | 8.7 | 2.7 | 25.6 | 32.1 | 35.2 | ||
Interbank Loans | 28.2 | 34.3 | 50.5 | 23.7 | 30.5 | ||
Repurchase Agreements | 43.6 | 100.9 | 180.5 | 143.0 | 108.7 | ||
All other Short-Term Investments | 7.6 | 18.3 | 28.8 | 18.2 | 17.6 | ||
Local Registered Stocks | 3.4 | 3.9 | 5.6 | 22.5 | 58.5 | ||
Government Bonds | 23.0 | 2.2 | 21.7 | 61.1 | 62.9 | ||
Local Government Bonds | - | 6.6 | 13.0 | 7.5 | 10.2 | ||
Equity Investments | |||||||
(Malawi Stock Exchange) | 4.6 | 3.2 | 5.2 | - | - | ||
Other Securities | 27.8 | 23.1 | 24.3 | 24.1 | 79.5 | ||
Total Loans and Leases (net of provisions) | 397.2 | 417.7 | 422.1 | 491.2 | 609.9 | ||
Other Assets | 129.9 | 159.6 | 219.2 | 264.6 | 310.8 | ||
Total Assets (Net) | 1,033.3 | 1,239.7 | 1,572.3 | 1,670.5 | 1,890.2 | ||
Type of Liabilities | |||||||
Deposits | 705.0 | 809.1 | 995.5 | 1,088.1 | 1,175.2 | ||
Liabilities to other Banks | 31.1 | 20.1 | 67.0 | 67.2 | 43.0 | ||
Other Liabilities | 120.4 | 200.1 | 253.8 | 248.2 | 356.8 | ||
Total Equity Capital | 176.8 | 210.4 | 256.0 | 267.1 | 315.1 | ||
Total Liabilities | 1,033.3 | 1,239.7 | 1,572.3 | 1,670.6 | 1,890.1 | ||
1 4 | Source: Reserve Bank of Malawi | 1 5 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
In terms of sectoral distribution of loans and leases, three sectors, namely; Mining and Quarrying; Community, Social and Personal Services; and Financial Services had the largest growth of 92.9 percent, 53.6 percent and 50.4 percent to MK2.7 billion, MK72.8 billion and MK19.4 billion as at December 2019, respectively. However, in terms of share of total loans and leases; Wholesale and Retail Trade, Agriculture and Manufacturing sectors constituted the largest share amounting to MK358.0 billion in total and represented 56.2 percent of total loans (Table 2.3).
Table 2.3: Distribution of loans by sector (MK'bn)
Sector | 2015 | 2016 | 2017 | 2018 | 2019 | |
Wholesale and retail trade | 88.2 | 101.9 | 101.3 | 112.7 | 146.8 | |
Agriculture, forestry, fishing and hunting | 93.7 | 81.9 | 97.9 | 94.3 | 122.8 | |
Manufacturing | 83.8 | 75.2 | 69.6 | 87.8 | 88.4 | |
Community, social and personal services | 41.7 | 58.5 | 44.3 | 47.4 | 72.8 | |
Other sectors | 26.6 | 23.8 | 32.5 | 43.4 | 53.7 | |
Transport, storage and communications | 20.7 | 28.8 | 16.9 | 24.5 | 34.8 | |
Financial services | 8.7 | 14.2 | 16.9 | 12.9 | 19.4 | |
Electricity, gas, water and energy | 4.4 | 4.6 | 15.2 | 33.4 | 44.8 | |
Construction | 11.9 | 13.4 | 14.8 | 15.9 | 19.7 | |
Restaurants and hotels | 10.7 | 11.7 | 13.5 | 18.5 | 20.0 | |
Credit/debit cards | 2.4 | 1.3 | 1.7 | 0.0 | 0.0 | |
Real estate | 3.6 | 1.3 | 1.7 | 7.8 | 11.2 | |
Mining and quarrying | 1.2 | 0.8 | 1.3 | 1.4 | 2.7 | |
TOTAL | 397.2 | 417.7 | 422.1 | 499.9 | 637.3 |
Source: Reserve Bank of Malawi
On the funding side, total liabilities increased by 12.2 percent to MK1,575.0 billion in December 2019. The increase was principally attributed to a growth in total deposits by 8.0 percent to MK1,175.2 billion in December 2019. Total deposits remained the highest source of funding accounting for 62.2 percentage share of total liabilities and equity, albeit a decrease from 65.1 percentage share registered in 2018.
With respect to capital account, total equity capital increased by 18.0 percent to MK315.1 billion in December 2019. The growth in equity capital was largely attributed to growth from retained earnings and current year net income by 15.7 percent and 35.5 percent to MK132.3 billion and MK59.2 billion, respectively.
The Registrar of Financial Institutions ANNUAL REPORT 2019
2.4 Capital Adequacy
The banking sector was well capitalised as all banks met the regulatory minimum core and total capital requirements of 10.0 percent and 15.0 percent, respectively as at December 2019. Average core and total capital ratios for the banking industry were at 17.0 percent and 21.0 percent. This was an increase from the previous year's positions of 15.4 percent and 18.8 percent, respectively (Figure 2.1).
Figure 2.1: Banking Sector Capital Adequacy Ratios
25 | ||||||||||||||||||||
(%) | 20 | |||||||||||||||||||
Percentage | 15 | |||||||||||||||||||
10 | ||||||||||||||||||||
5 | ||||||||||||||||||||
0 | ||||||||||||||||||||
Mar-15 | Jun-15 | Sep-15 | Dec-15 | Mar-16 | Jun-16 | Sep-16 | Dec-16 | Mar-17 | Jun-17 | Sep-17 | Dec-17 | Mar-18 | Jun-18 | Sep-18 | Dec-18 | Mar-19 | Jun-19 | Sep-19 | Dec-19 |
- Tier 1 ■ Total Capital
■ Required Tier 1 Capital Ratio ■ Required Total Capital Ratio
Source: Reserve Bank of Malawi
2.5 Asset Quality
Asset quality as measured by NPL ratio remained subdued as depicted by a slight increase in the ratio to 6.3 percent in December 2019 from 6.1 percent in December 2018 (Figure 2.2), against
a regulatory ceiling of 5.0 percent. This was as a result of an increase of 28.0 percent in NPL to MK40.3 billion in 2019, against a 24.2 percent increase in gross loans to MK637.3 billion. In addition, economic sector concentration of loans remained inherent.
1 6 | 1 7 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
Figure 2.2: Ratio of NPLs to Gross Loans and Leases for Banks
20.0 | ||||||||||||||||||||
18.0 | ||||||||||||||||||||
16.0 | ||||||||||||||||||||
14.0 | ||||||||||||||||||||
(%) | 12.0 | |||||||||||||||||||
Percentage | ||||||||||||||||||||
10.0 | ||||||||||||||||||||
8.0 | ||||||||||||||||||||
6.0 | ||||||||||||||||||||
4.0 | ||||||||||||||||||||
2.0 | ||||||||||||||||||||
0 | ||||||||||||||||||||
Mar-15 | Jun-15 | Sep-15 | Dec-15 | Mar-16 | Jun-16 | Sep-16 | Dec-16 | Mar-17 | Jun-17 | Sep-17 | Dec-17 | Mar-18 | Jun-18 | Sep-18 | Dec-18 | Mar-19 | Jun-19 | Sep-19 | Dec-19 |
Source: Reserve Bank of Malawi
2.6. Earnings
The banking industry continued to be profitable, registering a significant growth in aggregate profit after tax of 35.5 percent to MK59.2 billion as at December 2019. Consequently, Return on Assets (ROA) and Return on Equity (ROE) were at 2.7 percent and 20.5 percent, from 2.3 percent and 17.3 percent in 2018, respectively. Similarly, net interest margin increased to 10.9 percent in December 2019 from 10.5 percent in December 2018. Dividends paid out amounted to MK15.8 billion compared to MK1.7 billion in the previous year.
2.7 Liquidity
Liquidity in the banking sector was adequate during 2019, despite a decline in the liquidity ratio1 from 61.8 percent as at December, 2018 to 58.9 percent in December, 2019 which was well above the prudential benchmark of 25.0 percent (Figure 2.3). The decrease in the ratio was largely
on account of growth in deposits and short-term liabilities by 4.9 percent to MK1295.7 billion whilst liquid assets remained relatively constant at MK763.5 billion. Conceptually, there was also growth in lending activities in the year, hence portfolio shift from liquid money market positions.
1 Liquidity ratio is computed as liquid assets to total deposits and short-term liabilities
1 8
The Registrar of Financial Institutions ANNUAL REPORT 2019
Figure 2.3: Liquidity Ratio for Banks
100 | ||||||||||||||||||||
90 | ||||||||||||||||||||
80 | ||||||||||||||||||||
70 | ||||||||||||||||||||
(%) | 60 | |||||||||||||||||||
Percentage | ||||||||||||||||||||
50 | ||||||||||||||||||||
40 | ||||||||||||||||||||
30 | ||||||||||||||||||||
20 | ||||||||||||||||||||
10 | ||||||||||||||||||||
0 | ||||||||||||||||||||
Mar-15 | Jun-15 | Sep-15 | Dec-15 | Mar-16 | Jun-16 | Sep-16 | Dec-16 | Mar-17 | Jun-17 | Sep-17 | Dec-17 | Mar-18 | Jun-18 | Sep-18 | Dec-18 | Mar-19 | Jun-19 | Sep-19 | Dec-19 | |
■ Liquid Assets to Total Deposits | ||||||||||||||||||||
■ Liquid Assets to Total Deposits and Short Term Liabilities |
Source: Reserve Bank of Malawi
2.8 On-Site Examinations
During the year under review, the Registrar conducted prudential on-site examinations of all nine banks. In general, the banking industry complied with most of the regulatory requirements. This notwithstanding, no bank was put on enhanced monitoring. However, the Registrar continued recommending remedial measures to address weaknesses identified during on-site examinations. The Registrar also conducted pilot on-site examinations of the credit reference bureaus.
1 9
The Registrar of Financial Institutions ANNUAL REPORT 2019
3. CAPITAL MARKETS
3.1 Sector Overview
Malawi's capital market continued to be bullish during the year 2019 as reflected in the positive return of the Malawi All Share Index (MASI), albeit moderately when compared to the prior year return. On the primary markets, one company listed on the equity market while four Treasury Notes and two Corporate Notes were listed on the debt market in 2019. However, one Treasury Note matured during the year. The equity market remained the only active secondary market on the exchange as no single secondary trade was registered on the debt market in 2019.
In the brokerage sector, all brokerage firms registered profitability in 2019 on account of good turnover performance of the stock market. Similarly, the investment management sector registered an increase in profitability and continued to flourish on the backbone of steady inflow of funds from life assurance companies and pension funds.
In 2019, the capital market comprised one stock exchange, four brokerage firms, two collective investment schemes, eight investment advisors, four transfer secretaries and five portfolio managers.
3.2 The Stock Market
Activity on the stock market picked up markedly during the year under review, as the number of transactions increased to 3,064 deals in 2019 from 2,153 deals in 2018. The increase in activity was partly due to attractiveness of the stock market as an investment avenue, following preceding two years' positive returns as compared to declining money market interest rates. Further, the automation of the trading system at the Malawi Stock Exchange, continued to positively impact trading activity. In particular, it enhanced the efficiency of the market, lowered the minimum lot that could be traded from 100 shares to one share and moved the market towards disaggregated orders.
The number of shares traded on the stock exchange increased to 1,393.8 million in 2019 from
958.2 million in 2018 (Table 3.1). However, value of shares traded slightly declined to MK46.4 billion in 2019 from MK48.7 billion in 2018. The decline in value, despite an increase in number of shares traded, was due to low value shares accounting for a larger proportion of shares traded when compared to the previous year.
Number of companies listed on the exchange's equity market increased to fourteen, comprising twelve domestic counters and two foreign counters.
The Registrar of Financial Institutions ANNUAL REPORT 2019
Table 3.1: Stock Market Statistics | ||||||
Stock Market Statistic | 2015 | 2016 | 2017 | 2018 | 2019 | |
Volume of shares traded (MK'mn) | 2,400.0 | 410.0 | 699.0 | 958.2 | 1,393.8 | |
Value of shares traded (MK' bn) | 48.6 | 6.2 | 13.5 | 48.7 | 46.4 | |
Market Capitalization (MK'bn) | 7,522.1 | 8,516.5 | 10,609.5 | 1,284.7 | 1,428.8 | |
Malawi All Share Index | 14,562.5 | 13,320.5 | 21,598.1 | 28,983.5 | 30,252.2 | |
Domestic Share Index | 11,462.9 | 10,456.9 | 16,272.6 | 21,318.1 | 23,599.8 | |
Foreign Share Index | 1,762.1 | 2,026.1 | 3,519.4 | 5,265.1 | 4,024.9 | |
Source: Reserve Bank of Malawi
The MASI registered a positive return on index of 4.4 percent in 2019, albeit lower than 34.2 percent in 2018. Consequently, the Index gained 1,268.7 points to close off at 30,252.2 points in 2019 (Figure 3.1). The increase in MASI was due to an upward movement in the Domestic Share Index (DSI) despite a downward movement in the Foreign Share Index (FSI). A rise in share prices for eight domestic listed companies resulted in the DSI moving upwards by 2,281.7 points to 23,599.8 points in 2019. This was regardless of share price losses registered on four domestic counters. On the contrary, the FSI declined by 1,240.3 points to 4,024.9 points in 2019, due to a drop in share prices of the only two foreign listed companies.
Total market capitalization increased and closed at MK1,428.8 billion in December 2019 from MK1,284.7 billion in December 2018. The increase in total market capitalization was due to the increase in share prices on the eight domestic counters as well as listing of one additional company.
3.3 Stock Brokerage
Total income for stockbrokers marginally increased from MK1,408.2 million in 2018 to MK1,474.5 million in 2019, on the back of good turnover performance of the equity market as well as income from advisory services. Total expenditure increased significantly by 22.4 percent to MK867.5 million in 2019. Consequently, total profit after tax decreased by 16.0 percent to MK439.3 million in 2019.
2 0 | 2 1 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
Figure 3.1: Stock Indices Trends
40 000,0 | 9,000.00 | |||||||
30 000,0 | 6,750.00 | |||||||
MASI, DSI | 20 000,0 | |||||||
4,500.00 | ||||||||
FSI | ||||||||
10 000,0 | 2,250.00 | |||||||
0 | ||||||||
18 Dec-15 26 Feb-16 6 May-16 15 Jul-16 23 Sep-16 2 Dec-16 10 Feb-17 21 Apr-17 30 Jun-17 | 8 Sep-17 17 Nov-17 26 Jan-18 | 6 Apr-18 15 Jun-18 24 Aug-18 2 Nov-18 11 Jan-19 22 Mar-19 31 May-19 9 Aug-19 18 Oct-19 27 Dec-19 | ||||||
■ MASI | ■ DSI | ■ FSI (Rhs) | ||||||
Source: Reserve Bank of Malawi
3.4 Funds Management
Total funds under management grew by 18.2 percent to MK1.3 trillion in 2019 (Figure 3.2). Of these, holdings of listed equity instruments increased to 41.0 percent in 2019 from 35.1 percent in 2018; while holdings of money market instruments decreased to 39.4 percent in 2019 from
43.6 percent in 2018. The shift in portfolio holdings between these two classes of assets reflected the pursuit of better returns from the equity market as money market interest rates declined during the year under review. The rest of the funds comprised unlisted debt at 9.3 percent, unlisted property investments at 6.2 percent, unlisted equity at 3.3 percent, and listed debt at 0.6
percent.
The Registrar of Financial Institutions ANNUAL REPORT 2019
Figure 3.2: Funds under Management
1 400.00 | ||||||||||||||||||||||
1 200.00 | ||||||||||||||||||||||
1 000.00 | ||||||||||||||||||||||
Billion | 800.00 | |||||||||||||||||||||
MK | 600.00 | |||||||||||||||||||||
400.00 | ||||||||||||||||||||||
200.00 | ||||||||||||||||||||||
0 | ||||||||||||||||||||||
Mar-15 | Jun-15 | Sep-15 | Dec-15 | Mar-16 | Jun-16 | Sep-16 | Dec-16 | Mar-17 | Jun-17 | Sep-17 | Dec-17 | Mar-18 | Jun-18 | Sep-18 | Dec-18 | Mar-18 | Jun-18 | Sep-18 | Dec-18 | |||
Source: Reserve Bank of Malawi
Major sources of funds under management remained life insurance companies and pension funds, which contributed 54.4 percent and 24.4 percent of total funds, respectively (Table 3.2). Other sources included companies, natural persons and general insurance companies.
Table 3.2: Source of Funds under Management (MK'mn)
Source of Funds | 2015 | 2016 | 2017 | 2018 | 2019 | ||
Pension Funds | 106,097.0 | 130,212.0 | 167,222.0 | 246,960.0 | 316,300.0 | ||
General Insurance | 9,330.0 | 10,982.0 | 13,024.0 | 14,588.0 | 13,429.0 | ||
Life Insurance | 261,566.0 | 314,410.0 | 455,480.0 | 599,726.0 | 706,259.0 | ||
Medical Aid Funds | 395.0 | 556.0 | 415.0 | 342.0 | 686.0 | ||
Unit Trusts | 7,623.0 | 10,884.0 | 22,887.0 | 20,605.0 | 22,381.0 | ||
Companies | 83,444.0 | 96,345.0 | 140,292.0 | 163,489.0 | 199,281.0 | ||
Natural Persons | 5,383.0 | 8,820.0 | 12,617.0 | 19,744.0 | 21,507.0 | ||
Other | 8,034.0 | 11,117.0 | 15,318.0 | 21,884.0 | 19,003.0 | ||
Total | 481,872.0 | 583,325.0 | 827,256.0 | 1,087,338.0 | 1,298,847.0 | ||
Source: Reserve Bank of Malawi
Total income for fund managers grew by 43.2 percent to MK10.6 billion during 2019 (Table 3.3). The growth was attributed to an increase in management and corporate advisory fees. Operating expenses grew by 54.2 percent to MK6.2 billion in 2019 and this resulted in an increase in total profit after tax of 30.6 percent to MK3.1 billion in 2019.
2 2 | 2 3 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
Table 3.3: Income and Expenses for Fund Managers (MK'mn)
Item | 2015 | 2016 | 2017 | 2018 | 2019 | |
Revenue | 3,739.9 | 4,702.7 | 6,162.5 | 7,379.6 | 10,582.0 | |
Operating expenses | -1,982.6 | -2,534.3 | -3,066.6 | -3,993.9 | -6,159.7 | |
Profit before tax | 1,757.3 | 2,168.4 | 3,095.9 | 3,385.6 | 4,422.3 | |
Income tax | -540.0 | -658.3 | -777.8 | -1,039.8 | -1,358.8 | |
Profit after tax | 1,217.3 | 1,510.1 | 2,318.0 | 2,345.8 | 3,063.4 |
Source: Reserve Bank of Malawi
3.5 Unit Trust Operations
Total funds for the only open-ended collective investment scheme increased markedly to MK22.0 billion in 2019 from MK20.3 billion in 2018 (Figure 3.3). The growth emanated from positive net client cash flows.
Figure 3.3: Unit Trusts Funds Growth
24,00 | |||||||||
22,50 | |||||||||
Billion | 21,00 | ||||||||
MK' | |||||||||
19,50 | |||||||||
18,00 | Mar-18 | Jun-18 | Sep-18 | Dec-18 | Mar-19 | Jun-19 | Sep-19 | Dec-19 | |
Dec-17 |
Source: Reserve Bank of Malawi
3.6 On-Site Examinations
During the year, six on-site examinations were conducted, which included two portfolio managers, one investment advisor, one stock exchange, two stock brokers and one transfer secretary. The findings of the on-site examinations showed continued improvement in regulatory compliance amongst all examined institutions. However, a few non-compliance issues observed were brought to the attention of the board of directors and management of the examined institutions with recommended actions put forward for resolution.
The Registrar of Financial Institutions ANNUAL REPORT 2019
4. PENSION SECTOR
4.1. Sector Overview
Pension sector assets continued to register growth on account of contributions and investment income. The sector also registered steady growth in membership during the year. Nonetheless, pension assets growth was the lowest since the introduction of the Pension Act in 2011.
4.2 Pension Sector Assets
Pension assets grew by 22.5 percent in 2019 to MK878.1 billion due to growth in contributions and investment income. Growth in investment income was however lower than in previous years as pension funds bore the impact of a bearish stock market and low interest rates during the year. Notwithstanding this muted performance, there was substantial growth in contributions following addition of new members in the Public Service Pension Fund. The fund comprised 84,287 members and registered accumulated assets of MK51.3 billion as at the end of 2019. (Figure 4.1).
Figure 4.1 Assets of Pension Funds
900 | 878.1 | ||||
800 | 716.5 | ||||
700 | |||||
600 | 532.2 | ||||
Billion | 500 | 380.8 | |||
400 | |||||
MK' | |||||
312.2 | |||||
300 | |||||
200 | |||||
100 | |||||
0 | 2016 | 2017 | 2018 | 2019 | |
2015 |
Source: Reserve Bank of Malawi
2 4 | 2 5 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
4.3 Investment Performance of Pension Fund Assets
Pension funds achieved an investment return of 13.4 percent in the year under review compared to 21.0 percent registered in 2018. The decline in return on investment was mainly attributed to the dismal performance of the Malawi All Share Index (MASI) and a generally low interest environment experienced in the period under review. The stock market return significantly dropped to 4.4 percent in December 2019 from 34.2 percent in December 2018. The drop adversely affected pension funds as 47.4 percent of the pension assets were invested in listed shares. Consequently, unrealised gains on the stock market for the pension fund industry decreased to MK41.4 billion in 2019 from MK68.6 billion in 2018. On the other hand, dividend income registered a growth of 26.4 percent to MK10.0 billion from MK7.9 billion recorded in 2018. Further, income earned on interest bearing assets increased by 3.4 percent to MK46.6 billion. In general, the return on investment dropped to MK106.7 billion in December 2019 from MK130.4 billion in December 2018.
4.4 Asset Portfolio Mix
The asset portfolio of the pension sector remained concentrated in listed equities and Government securities. Concentration in listed equities increased to 47.4 percent of total assets, compared to 38.1 percent in December 2018 (Figure 4.2). Following a decline in interest rates, pension funds generally undertook a shift into longer dated government securities from treasury bills in order to lock-in prevailing interest rates. Consequently, concentration in long- term Government securities increased to 14.2 percent from 9.0 percent. Conversely, short-term Government securities went down to 10.6 percent in the period under review, from 23.9 percent in December 2018. Fixed deposits constituted 10.9 percent of total assets from 7.8 percent reported in 2018. Aggregate investments in interest bearing assets remained largely unchanged at 41.9 percent of total pension assets while investments in property slightly increased to 4.0 percent from 3.8 percent in 2018.
Figure 4.2 Asset Composition for Pension Funds | |
4.0% | 0.1% |
6.2% | 10.9% |
47.4% | 24.8% |
■ Fixed Deposits | |
■ Government Securities | |
■ Malawi Listed Equity | |
■ Unlisted Equity | |
■ Property | |
■ Other Investments | |
Source: Reserve Bank of Malawi |
The Registrar of Financial Institutions ANNUAL REPORT 2019
4.5 Pension Contributions
Annual pension contributions increased to MK112.8 billion in 2019 from MK98.3 billion in 2018 (Figure 4.3). The growth in contributions resulted from increase in pensionable wages and membership. However, total pension contributions amounting to MK20.2 billion were outstanding by the end of the year, a significant rise from MK13.1 billion reported in 2018. Consequently, the Registrar instituted corrective measures to ensure that employers comply with the requirement to remit pension contributions timeously.
Figure 4.3 Annual Pension Contributions
120 | |||||
98.3 | 112.8 | ||||
100 | |||||
80 | 62.5 | ||||
60 | 48.5 | ||||
40 | 40.7 | ||||
20 | |||||
0 | 2015 | 2016 | 2017 | 2018 | 2019 |
Source: Reserve Bank of Malawi
2 6 | 2 7 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
4.6. Coverage -Pension Sector Membership
Total number of pension members increased by 6.4 percent to 431,897 as at December 2019 (Figure 4.4). The increase was largely due to new employees joining pension funds following enhanced employer inspections and awareness programs aimed at enforcing compliance of the Pension Act.
Figure 4.4: Membership under the National Pension Scheme
435,000.00 | 431,897.00 | |||||||||||
429,346.00 | ||||||||||||
430,000.00 | ||||||||||||
425,000.00 | 422,993.00 | |||||||||||
420,000.00 | 421,248.00 | |||||||||||
415,000.00 | ||||||||||||
410,000.00 | 406,068.00 | |||||||||||
400,000.00 | ||||||||||||
395,000.00 | ||||||||||||
390,000.00 | Jan-19 | Feb-19 | Mar-19 | Apr-19 | May-19 | Jun-19 | Jul-19 | Aug-19 | Sep-19 | Oct-19 | Nov-19 | Dec-19 |
Source: Reserve Bank of Malawi
In December 2019, the total number of employees covered by occupation pension schemes was 526,615, including 94,718 Government employees under the Pay-As-You-Go pension arrangement. According to the National Statistics Office (NSO), a total population of 5.3 million2 were employed in 2018, of which only about 9.7 percent were covered under the National Pension Scheme.
2 2018 Malawi Population and Housing census, NSO
2 8
The Registrar of Financial Institutions ANNUAL REPORT 2019
4.7 Administration and Investment Fees
Total expenses increased to MK10.8 billion in 2019 from MK7.4 billion. This resulted from an increase in investment and administrative expenses. Investment expenses rose significantly to MK6.4billion in 2019 from MK4.2 billion in 2018 whereas administrative expenses increased to MK4.4 billion from MK3.2 billion (Table 4.1). Investment expenses, relative to the level of total pension assets were moderate at 0.73 percent, a marginal increase from 0.58 percent registered in 2018.
Table 4.1: Expenses for Pension Funds (MK'mn)
2015 | 2016 | 2017 | 2018 | ||
Administration fees | 2,226.0 | 3,194.0 | 3,030.0 | 2,510.0 | |
Investment costs | 2,118.0 | 2,690.0 | 3,334.0 | 4,181.0 | |
Other Administration Expenses | 377.0 | 553.0 | 1,654.0 | 740.0 | |
Total Expenses | 4,721.0 | 6,436.0 | 8,017.0 | 7,431.0 | |
Source: Reserve Bank of Malawi
4.8 Payment and Transfer of Pension Benefits
Total pension benefits paid increased by 22.8 percent to MK47.2 billion in 2019. Retirement benefits constituted 51.8 percent of the benefits paid while death benefits made up 4.6 percent. A significant proportion of the benefits (43.6 percent) were paid as early withdrawals. There was also a notable increase in the amount of benefits transferred from one pension fund to another totalling MK26.2 billion in 2019 from MK5.0 billion made in 2018. The transfers signified increased information and enhanced knowledge among pension members and pension funds enabling them exercise the right to transfer pension fund management to more capable and efficient companies. However, other members transferred their pension benefits following change of jobs.
Table 4.2: Pension Benefits Paid
2017 | 2018 | 2019 | ||||
Type of Benefit | K' mn | Share (%) | K' mn | Share (%) | K' mn | Share (%) |
Retirement | 14,790.9 | 52.0 | 18,948.5 | 49.2 | 24,425.1 | 51.8 |
Death | 2,107.7 | 7.4 | 2,834.9 | 7.4 | 2,192.8 | 4.6 |
Early Withdrawals | 11,531.4 | 40.6 | 16,708.7 | 43.4 | 20,546.4 | 43.6 |
TOTAL | 28,430.0 | 100.0 | 38,492.0 | 100.0 | 47,164.4 | 100.0 |
Source: Reserve Bank of Malawi
2 9
The Registrar of Financial Institutions ANNUAL REPORT 2019
4.9 On-Site Prudential Examinations
The Registrar conducted three on-site examinations on pension entities in 2019. The examinations revealed, among other things, governance challenges, pension administration system problems, misreporting of financials in the pension return and risk management problems. The Registrar continued recommending remedial measures to address weaknesses identified during the on-site examinations
4.10 Employer Pension Compliance Inspections
The Registrar and the Ministry of Labour, Youth, Sports and Manpower Development, jointly conducted pension compliance inspections of employers in most parts of the country in 2019. Out of a sample of 120 employers, mainly from the Small and Medium Enterprises (SME), 46 percent had not placed their employees on pension, consequently risking 4,886 employees retiring without pension. The above notwithstanding, the Registrar continued with employer inspections and awareness programs to ensure full compliance with the Pension Act.
4.11 Remittance of Pension Contributions Enforcement
The Registrar stepped up efforts to enforce timely remittance on pension contributions, which included the 'name and shame' strategy. Meanwhile, a total of 1,027 employers from the private sector had outstanding pension contributions as at December 2019. Despite these efforts, pension contribution arrears kept increasing, as such, the Registrar will continue taking more stringent measures to curb the misconduct.
4.12 Pension Complaints
The number of pension complaints processed by the Registrar in 2019 increased by 34 percent to 174. The increase was largely attributed to enhanced awareness on the part of members regarding where to channel their pension complaints against employers. The nature of complaints mainly included failure by pension members to access pension benefits due to non-remittance of pension contributions by employers. Meanwhile, there were also a number of requests to the Registrar applying for commutation of annuities. These requests, were however not approved as they were contravening the Pension Act. In view of this development, the Registrar intends to intensify awareness programs on annuities to pension fund members. The objective will be to ensure pension fund members have adequate knowledge regarding pension annuities.
The Registrar of Financial Institutions ANNUAL REPORT 2019
4.13 Pension and Insurance Awareness Week
The Registrar organized a Pension and Insurance Awareness Week from 29th April to 3rd May, 2019 and this was, for the first time, led by the insurance industry, under the theme "Insurance, claims and complaints handling". The core objective was to promote pension awareness among the general public on the procedures for claims and complaints handling. A number of activities were undertaken during the week and these included: launch of awareness week, grand march in Blantyre Central Business District, product exhibitions and presentations from all insurance providers at Chichiri Shopping Malls for the whole week; awareness banners in Blantyre City, press release in the Daily Times and The Nation newspapers; and radio and TV infomercials on various radio and TV stations.
4.14 Centralised National Pension Database Project
The development of Centralised National Pension Database (CNPD) System was still in progress. Employers and pension fund members were requested to submit their details to pension administrators. However, the response rate was low and the Registrar continued to encourage pension members to submit the information as the submission was critical to the implementation of the CNPD system.
3 0 | 3 1 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
5. GENERAL INSURANCE
5.1. Sector Overview
Overall, the general insurance sector grew in terms of total assets, premium written and profitability. Nonetheless, the sector continued experiencing solvency and liquidity vulnerabilities owing to inadequate capital in a few insurers and high insurance receivables across the sector. The sector comprised of eight general insurers, one reinsurer, 26 insurance brokers, one reinsurance broker, six agents for brokers, 41 insurance agents, one insurance claim settling agent and 19 loss adjusters.
5.2 Premium Income
Gross premium written increased to MK54.6 billion in 2019, representing year - on - year growth of 13.4 percent compared with that of 14.1 percent in 2018 (Table 5.1). The increase was largely due to growth in premium for both motor and non-motor classes of business. Premium for the motor class of business grew by 11.0 percent to MK31.1 billion, whereas premium for non-motor classes of business grew by 16.6 percent to MK23.5 billion. However, motor class of business remained the biggest class of insurance contributing 56.5 percent of the total gross premium from 58.1 percent in 2018.
The sector retained 71.6 percent of the gross premium written in 2019 compared with 74.0 percent in 2018. Consequently, the sector registered a lower growth in net premium written of 9.3 percent to MK39.4 billion in 2019 from 14.0 percent in 2018.
The sector's retention level recorded a gradual drop over the preceding two years, reflecting the sector's limited appetite to locally retain larger and complex risks in non-motor classes of business. This highlights the need for insurers to build domestic financial and technical capacity to underwrite and retain more premiums in complex non-motor risks. However, the retention level for the motor class of business increased slightly to 97.0 percent in the year.
Premium earned grew by 12.1 percent to MK39.0 billion in 2019. The growth was largely on account of an increase of 14.9 percent in premium earned from motor business to MK29.9 billion during the year under review. This growth was nevertheless lower than 16.9 percent registered in 2018 owing to subdued growth in gross premium written as well as low retention in non- motor classes of business. Fire class of business registered the largest drop in earned premium of 24.2 percent to MK1.8 billion (Table 5.1).
The Registrar of Financial Institutions ANNUAL REPORT 2019
Table 5.1: Insurance Premium for General Insurers by Class of Business | ||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||
Gross Premium Written | ||||||||
Fire | 3,946.6 | 6,158.2 | 7,264.9 | 8,057.5 | 9,364.7 | |||
Motor | 18,980.2 | 21,531.3 | 24,686.5 | 28,002.0 | 31,072.8 | |||
Personal Accident | 2,488.3 | 4,010.6 | 3,952.4 | 4,569.4 | 4,887.5 | |||
Miscellaneous | 4,776.9 | 3,835.1 | 5,776.3 | 7,557.0 | 9,290.9 | |||
Total Gross Premium | 30,192.0 | 35,535.2 | 41,680.2 | 48,185.9 | 54,615.9 | |||
Premium Ceded to Re-insurers | ||||||||
Fire | 2,777.8 | 4,029.4 | 4,987.3 | 5,976.9 | 7,665.6 | |||
Motor | 1,280.7 | 1,477.2 | 804.7 | 1,064.6 | 926.9 | |||
Personal Accident | 762.1 | 1,262.0 | 1,079.9 | 1,402.6 | 1,627.2 | |||
Miscellaneous | 1,706.3 | 2,129.4 | 3,069.7 | 4,236.5 | 5,396.5 | |||
Total Premium Ceded | 6,526.8 | 8,898.0 | 9,941.6 | 12,680.6 | 15,616.3 | |||
Net Premium Written | ||||||||
Fire | 1,168.8 | 2,128.4 | 2,277.7 | 2,313.6 | 1,863.5 | |||
Motor | 17,699.5 | 20,054.1 | 23,881.8 | 27,068.6 | 30,181.9 | |||
Personal Accident | 1,726.2 | 2,748.6 | 2,872.5 | 3,233.1 | 3,385.2 | |||
Miscellaneous | 3,070.6 | 1,705.8 | 2,706.7 | 3,406.0 | 3,940.2 | |||
Total | 23,665.1 | 26,637.2 | 31,738.7 | 36,021.3 | 39,370.8 | |||
Earned Premium | ||||||||
Fire | 849.0 | 2,287.2 | 2,069.0 | 2,393.2 | 1,813.7 | |||
Motor | 17,255.3 | 18,837.5 | 22,591.9 | 26,021.5 | 29,892.7 | |||
Personal Accident | 1,574.9 | 2,585.1 | 2,710.6 | 3,079.5 | 3,376.7 | |||
Miscellaneous | 3,106.3 | 1,686.8 | 2,546.2 | 3,315.8 | 3,938.1 | |||
Total Earned Premium | 22,785.5 | 25,396.6 | 29,917.7 | 34,809.9 | 39,021.2 |
Source: Reserve Bank of Malawi
5.3 Claims Experience
The sector registered a marginal increase in claims as shown by a 1.9 percent rise in the claims ratio to 58.7 percent in 2019 (Appendix Table 12.19). Gross claims incurred grew by 24.9 percent to MK30.7 billion in 2019, largely driven by increases in claims in fire, motor and miscellaneous classes of business (Appendix Table 12.17). Miscellaneous classes of business recorded highest growth in claims of 68.0 percent from 31.3 percent in 2018.
3 2 | 3 3 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
However, the impact of the increased gross claims was cushioned by reinsurance recoveries mainly in fire and other non-motor classes of business, which grew by 62.6 percent to MK7.8 billion (Appendix Table 12.20). Consequently, net claims incurred grew to MK22.9 billion, translating to 15.8 percent year-on-year increase. Meanwhile, the sector paid MK28.4 billion of insurance claims against gross claims incurred of MK30.7 billion in the year. Nevertheless, a total of MK14.3 billion net of reinsurance recoveries was still outstanding as at December 2019.
Figure 5.1: Net Claims Incurred by General Insurers by Class of Business
30 000 | 25.0% | |||||||
in | 25 000 | 20.0%% | ||||||
Net claims insured MK' Millions | 20 000 | Aggregate growth | ||||||
15.0% | ||||||||
15 000 | ||||||||
10 000 | 10.0% | |||||||
5 000 | 5.0% | |||||||
0 | 2016 | 2017 | 2018 | 0.0% | ||||
2015 | 2019 | |||||||
■ Fire | ■ Motor | ■ Personal accident | ■ Miscellaneous | ■ Aggregate growth % |
Source: Reserve Bank of Malawi
5.4 Underwriting and Operating Performance
Overall, the general insurance sector was profitable in 2019 with six out of eight insurers posting profits. Pre-tax profits increased by 7.0 percent to MK3.8 billion in December 2019. This was attributed to a 10.7 percent growth in underwriting profit to MK14.4 billion in the year (Table 5.2). Underwriting profit grew on the backbone of growth in premium earned and moderate growth in claims experience. All classes of insurance business registered underwriting profits (Appendix Table 12.23).
However, net investment income, dropped by 13.7 percent to MK3.3 billion in 2019 due to falling yields on money markets. Most general insurers took a conservative approach by largely investing in Government securities and other fixed income securities (Appendix Table 12.25). Consequentially, the low investment returns weighed down on the sector's overall profitability, resulting in a drop in overall return on shareholder funds to 20.5 percent from 23.6 percent in December 2018. In addition, high management and operating expenses contributed to lower profitability. The sector had a high management expenses ratio of 35.5 percent in 2019 which was above the recommended maximum threshold of 30.0 percent. A significant amount of the management expenses were bad debts written off.
The Registrar of Financial Institutions ANNUAL REPORT 2019
Table 5.2: Underwriting and Operating Results for General Insurers (MK'mn)
2015 | 2016 | 2017 | 2018 | 2019 | ||
Underwriting Surplus (Deficit) | 7,679.7 | 9,128.8 | 11,915.20 | 12,969.4 | 14,352.1 | |
Net Investment & Other Income | 3,096.7 | 3,781.0 | 7,582.5 | 3,809.8 | 3,287.8 | |
Management Expenses | -6,360.1 | -9,538.3 | -11,757.7 | -13,197.9 | -13,836.6 | |
Other Expenses | -12.3 | -88.1 | -4,543.0 | - | - | |
Profit before Tax | 4,404.1 | 3,414.1 | 3,209.4 | 3,556.1 | 3,803.3 | |
Taxation | -1,371.0 | -1,171.2 | -1,495.5 | -1,161.8 | -1,222.8 | |
Profit for the year | 3,033.1 | 2,242.9 | 1,713.9 | 2,394.3 | 2,580.5 | |
Return on shareholder funds (%) | 42.1 | 24.5 | 21.8 | 23.6 | 20.5 |
Source: Reserve Bank of Malawi
5.5 Assets and Liabilities
Overall asset composition remained broadly unchanged from 2018. Majority of assets amounting to 37.2 percent were in fixed deposit, followed by insurance receivables at 26.1 percent and equity investment at 11.2 percent.
The total assets for the sector grew by 12.1 percent to MK55.8 billion as at December, 2019 (Table 5.3). This was largely due to growth in gross premium income. Fixed deposit investments in banks and other deposit taking financial institutions registered the highest growth of 43.7 percent to MK20.8 billion, followed by receivables on insurance and reinsurance contracts which grew by 16.5 percent to MK14.6 billion in 2019.
Despite constituting a low percentage of the insurers' asset portfolio, insurance receivables were 76.9 percent of the insurer's total capital as of December 2019 compared with 70.0 percent in 2018. This position exposed the sector's capital to significant credit and liquidity risks from potential payment defaults from insurance debtors.
3 4 | 3 5 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
Table 5.3: Assets for General Insurers | |||||||
2015 | 2016 | 2017 | 2018* | 2019 | |||
Assets | |||||||
Fixed Assets for own use | 1,828.6 | 2,602.1 | 3,200.7 | 4,279.7 | 4,502.2 | ||
Real Property Investments | 422.7 | 662.0 | 718.2 | 1,386.0 | 1,512.9 | ||
Govt. & Other Securities | 4,733.1 | 5,564.0 | 6,996.6 | 5,103.0 | 2,288.0 | ||
Equity Investments | 2,947.7 | 3,211.0 | 4,090.5 | 5,746.7 | 6,271.9 | ||
Fixed Deposit Investments | 6,968.6 | 5,670.5 | 8,501.5 | 14,456.1 | 20,776.6 | ||
Other Investments | - | 69.1 | 69.3 | 856.6 | 376.6 | ||
Loans & Debentures | 646.9 | 69.3 | 64.8 | 11.0 | 20.6 | ||
**Insurance Receivables | 8,155.4 | 10,881.5 | 11,513.4 | 12,499.3 | 14,561.7 | ||
Cash and Cash Equivalents | 906.7 | 3,879.3 | 3,197.3 | 3,114.5 | 2,749.2 | ||
Other Assets | 3,238.4 | 5,498.0 | 4,586.6 | 2,334.3 | 2,744.4 | ||
Total Assets | 29,847.9 | 38,106.9 | 42,939.0 | 49,787.3 | 55,804.0 | ||
Source: Reserve Bank of Malawi
Total liabilities stood at MK36.9 billion at December 2019 representing an increase of 15.5 percent from 2018 (Table 5.4). Growth in liabilities was attributed to MK2.6 billion increase in outstanding claims to MK14.3 billion as at December 2019. Total technical reserves constituted 70.3 percent of the general insurers' liabilities compared with 72.0 percent in 2018.
Table 5.4: Liabilities for General Insurers | |||||||
2015 | 2016 | 2017 | 2018* | 2019 | |||
Liabilities | |||||||
Unearned Premiums Reserve | 7,055.2 | 8,241.0 | 10,061.6 | 11,209.2 | 11,559.2 | ||
***Outstanding Claims Reserve | 8,692.9 | 10,587.6 | 11,260.0 | 11,765.0 | 14,348.9 | ||
Amounts Payable on Reinsurance | 1,565.6 | 1,623.2 | 2,514.0 | 3,440.4 | 4,098.0 | ||
Long Term Liabilities | - | 4.7 | - | 132.8 | 153.7 | ||
Provision for Taxation | 598.6 | 643.4 | 487.5 | 345.5 | 533.2 | ||
Amounts Payable to Banks | 130.0 | 271.7 | 102.9 | 96.4 | 32.8 | ||
Other Liabilities | 1,735.3 | 2,734.6 | 3,791.8 | 4,936.1 | 6,141.8 | ||
Total Liabilities | 19,777.6 | 24,106.3 | 28,217.8 | 31,925.4 | 36,867.5 | ||
Equity/Shareholders' Funds | 10,070.2 | 14,000.6 | 14,721.2 | 17,861.9 | 18,936.5 | ||
Total Equity and Liabilities | 29,847.9 | 38,106.9 | 42,939.0 | 49,787.3 | 55,804.0 |
- Restated figures
- Include receivables from reinsurers and policy holders
- Include reserves for IBNR & expenses
Source: Reserve Bank of Malawi
The Registrar of Financial Institutions ANNUAL REPORT 2019
5.6 Liquidity
The sector continued to experience tight liquidity in 2019 as revealed by the sector's liquidity ratio of 78.2 percent which remained constant from 2018 position. The ratio was below the recommended minimum threshold of 100.0 percent. A high level of receivables partly affected the low liquidity ratio.
5.7 Capital and Solvency
The sector's overall capital and solvency position continued to be weighed down by capital and solvency shortfall in three insurers that did not meet the capital and solvency requirements. As a result, the sector's aggregate solvency ratio stood at 18.4 percent from 18.6 percent in 2018 and was below regulatory minimum requirement of 20.0 percent (Figure 5.2). However, shareholders' funds grew to MK18.9 billion from MK17.9 billion in 2018. The growth in shareholders' funds was on account of MK495.2 million increase in asset revaluation reserve to MK5.4 billion, MK309.3 million capital injection by one insurance company as well as MK270.1 million growth in retained profits to MK4.5 billion.
Figure 5.2: Capital and Solvency for General Insurers
20 000,00 | 30.0% | ||||||||
in | 18 000,0 | 25.0% | |||||||
16 000,0 | 25.1% | ||||||||
Shareholder Funds | 24.3% | Solvency Ratio | |||||||
MK' Millions | 14 000,0 | ||||||||
20.0% | |||||||||
12 000,0 | |||||||||
18.6% | 18.4% | ||||||||
10 000,0 | 16.0% | 15.0% | |||||||
8 000,0 | 10.0% | ||||||||
6 000,0 | |||||||||
4 000,0 | 5.0% | ||||||||
2 000,0 | |||||||||
0 | 2015 | 2016 | 2017 | 2018 | 2019 | 0.0% | |||
■ Equity/Shareholders' Funds | ■ Solvency Ratio |
Source: Reserve Bank of Malawi
This notwithstanding, general insurers maintained adequate asset coverage of liabilities of 151.4 percent, which was above the minimum recommended limit of 110.0 percent. Furthermore, the Registrar continued to strengthen the capital and solvency regime of the sector in the year through, among other things, issuance of the Insurance (Reserving Requirements for General Insurers and Reinsurers) Directive, 2019 and on-going supervisory surveillance. Additionally, the Registrar revised the Insurance (Minimum Capital and Solvency Requirements for General Insurers) Directive, 2017 with the objective of enhancing the regulatory framework on capital and solvency.
3 6 | 3 7 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
5.8 Reinsurance
Premiums ceded to reinsurers increased by 23.2 percent to MK15.6 billion in 2019, representing
27.9 percent of total gross premiums written in the year compared to 25.2 percent in 2018 (Figure 5.3). The proportion of overall premiums ceded to reinsurers gradually increased over the preceding two years reflecting reduced premium retention levels in non-motor classes of insurance business. Out of the ceded premiums 49.1 percent were in fire, and 34.6 percent in miscellaneous, 10.4 percent in personal accidents, and 5.9 percent in motor classes of insurance business. The bulk of the premiums ceded were placed with reinsurers outside Malawi.
Figure 5.3: Gross Premium Written vs. Reinsurance Premium Ceded (General Insurers)
18 000,0 | ||||||||
in | 16 000,0 | |||||||
14 000,0 | 12,680.6 | 15,616.3 | ||||||
Shareholder Funds | MK' Millions | |||||||
12 000,0 | ||||||||
10 000,0 | 8,898.0 | 9,949.7 | ||||||
8 000,0 | ||||||||
6 000,0 | 6,526.8 | |||||||
4 000,0 | ||||||||
2 000,0 | ||||||||
0 | 2015 | 2016 | 2017 | 2018 | 2019 | |||
■ Fire | ■ Motor | ■ Personal accident | ■ Miscellaneous ■ Aggregate growth % |
Source: Reserve Bank of Malawi
5.9 On-Site Examinations
The Registrar carried out on-site examinations of four general insurance companies and six insurance brokers in 2019. Findings of the on-site examination included high level of insurance receivables and weaknesses in capital and solvency position. Appropriate enforcement actions were taken by the Registrar to address these shortfalls.
The Registrar of Financial Institutions ANNUAL REPORT 2019
6. LIFE INSURANCE
6.1 Sector Overview
The life insurance sector assets continued to grow on account of increases in gross premiums and investment income. In terms of solvency, all but one life insurer met the minimum requirements at company level while two life insurers failed to meet the solvency requirements at life fund level.
6.2 Composition of the life insurance sector
Five licensed entities with 688 licensed tied sales agents operated in the life insurance market in the year 2019. The insurers mainly underwrote four classes of life insurance business namely; individual life, annuities, group risk and deposit administration. Two of the life insurers underwrote one class of life insurance business only while the rest were underwriting all classes of life insurance business.
In terms of market share3, two life companies continued to dominate with a combined gross premium market share of 87.0 percent as of December, 2019. The other three life insurers shared 13.0 percent.
6.3 Capital and Solvency
All life insurers met the minimum paid up capital requirements as of December, 2019. Aggregate solvency ratio dropped to 161.0 percent in December, 2019 from 169.0 percent recorded in December, 2018. The drop was as a result of a 23.3 percent increase in policy holder liabilities and technical provisions in relation to 17.5 percent growth in solvency capital. Out of the five life insurers, one life insurer failed to meet both minimum solvency requirements at whole company and life fund level as of December 2019. Similarly, one life insurer failed to meet minimum solvency requirements at life fund level.
6.4 Assets and Liabilities
Total assets held by life insurers including pension assets invested in deposit administration products increased by 17.7 percent to MK731.9 billion from MK621.6 billion in December, 2018 (Table 6.1). Out of these, total assets directly attributed to life insurance business increased by 14.6 percent to MK193.4 billion in December, 2019.
Investment assets increased to 98.0 percent of the insurers' total assets from 96.1 percent recorded in December 2018. Equities, both listed and unlisted, constituted the highest proportion of assets at 51.8 percent from 50.6 percent recorded in 2018, followed by government securities at 29.3 percent from 33.8 percent. Despite the recorded nominal growth concentration risk evidently materialised as the sector was negatively impacted by poor performance of the stock market. Consequently, investment yield on policyholder assets decreased to 15.0 percent in 2019 as compared to 20.6 percent in December 2018. Nonetheless, fixed deposit increased substantially to MK83.2 billion in December 2019 from MK34.2 billion in December 2018. Interest rates for such investments are negotiable hence more attractive.
3 8 | 3 Market share calculations exclude deposit administration business. | 3 9 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
Table 6.1 Asset of Life Insurance (MK'mn) | |||||
Asset Allocation | Dec-2019 | Dec-2018 | Change | ||
MK'bn | MK'bn | Percent | |||
Cash and Bank | 3.2 | 4.0 | -20.0 | ||
Loans | 42.4 | 28.9 | 46.7 | ||
Fixed Deposits | 83.8 | 34.2 | 58.9 | ||
Listed Equities | 347.2 | 255.6 | 35.8 | ||
Unlisted Equities | 22.2 | 58.9 | -62.3 | ||
Government Securities | 208.8 | 209.9 | -0.5 | ||
Real Estate | 11.1 | 9.8 | 13.3 | ||
Due from Policyholders | 2.2 | 1.9 | 15.8 | ||
Other Assets | 11.0 | 8.1 | 35.8 | ||
Total Assets | 731.9 | 621.6 | 17.7 |
Source: Reserve Bank of Malawi
Total liabilities of the sector increased by 18.8 percent to MK680.6 billion in 2019, of which 98.0 percent were life fund liabilities and technical provision. Life fund liabilities continued to grow with increase in the lives covered by the life insurers.
6.5 Earnings
The earnings performance of the life insurance industry registered a decline in profit after tax to MK8.5 billion as of December, 2019 from 9.1 billion in December 2018. Consequently, the Return on Equity (ROE) dropped to 18.5 percent in December 2019 from 35.1 percent recorded in December 2018. The decline in profits arose from lower underwriting surplus of MK2.9 billion compared to MK9.8 billion appropriated in December 2018. The underwriting profits dropped as a result of increasing management expenses especially expenses relating to group risk and reduction in investment income earned on policyholder funds. The expense ratio was measured at 12.5 percent, an increase from 10.0 percent in 2018. On a positive note, investment income on shareholder funds increased to MK7.0 billion from MK5.2 billion, primarily on account of interest income.
The claims experience during the year was fair albeit an increase in total claims paid to MK8.6 billion from MK6.5 billion in December, 2018, representing a claim ratio of 36.2 percent from 30.7 percent in December 2018. The increase was largely due to claims paid in respect of matured individual life policies.
6.6 Premiums
Gross premiums written on life business grew by 20.1 percent to MK35.8 billion. The growth was on account of annuity business which increased by 31.7 percent to MK10.8 billion, followed by group risk premiums business at 18.7 percent to MK13.1 billion and individual life gross premiums at 12.4 percent to MK11.8 billion as at December, 2019 (Figure 6.1).
The Registrar of Financial Institutions ANNUAL REPORT 2019
Figure 6.1: Gross Premiums for Life Insurers (MK'bn)
80 | |||||
70 | |||||
Millions | 60 | ||||
50 | |||||
40 | |||||
MK' | 30 | ||||
20 | |||||
10 | |||||
0 | 2017 | 2018 | 2019 | ||
2016 | |||||
■ Annuity | ■ Individual Life Business | ■ Group Risk | ■ Annuity |
Source: Reserve Bank of Malawi
6.7 Reinsurance
Retention ratio for life insurers at 96.5 percent remained relatively constant from the December 2018 position. Nevertheless, significant changes were observed in retention ratios for group risk business which increased to 90.9 percent from 94.0 percent in December 2018. Retention ratio on individual life business on the other hand, reduced to 99.4 percent from 99.9 percent in the year 2018.
6.8 Underwriting Experience
As at December 2019, total in force policies were 92,513 in individual life business, 2,593 in group risk business and 4,722 in annuities. Out of these policies, new individual life insurance policies underwritten increased to 23,320 in 2019 from 21,326 policies in 2018 (Figure 6.2). Similarly, new group life policies underwritten in 2019 increased to 305 from 175 in 2018 while new annuities increased to 759 in 2019 from 471 in 2018.
4 0 | 4 1 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
Figure 6.2: New Life Insurance Policies Underwritten by Life Insurers
Number of Individual Life Policies | 24 000 | 2 000 | Number of Group Life Policies | |||
18 000 | 1 525 | |||||
12 000 | 1 050 | |||||
6 000 | 575 | |||||
0 | 100 | |||||
2015 | 2016 | 2017 | 2018 | 2019 | ||
■ Individual Life Polices ■ Group Life Polices
Source: Reserve Bank of Malawi
Total lives assured increased by 47.8 percent to 633,993 of which 536,758 were lives covered under group life; 92,513 were individual life; and 4,722 were annuitants (Table 6.2). The increase in total lives assured mainly relate to inclusion of 106,722 lives covered under bancassurance business, which were previously not included in the calculation.
Total individual life policies terminated by surrender increased to 2,647 in 2019 from 1,226 in 2018, while a total number of 2,187 policies were terminated by lapse in 2019 compared to 4,236 in 2018 (Table 6.2). Policies terminated by surrender included those with a disinvestment option. However, there was a reduction in group risk policies with 95 schemes discontinued in the year 2019 compared to 215 in 2018.
The number of annuities discontinued in 2019 increased to 146 compared to 115 in 2018. This was due to the suspension of payment of annuities by the insurers upon lapse of guarantee period and absence of pensioner's certificate of existence.
The Registrar of Financial Institutions ANNUAL REPORT 2019
Table 6.2: Number of Individual Life and Group Life Policies | |||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||
Individual Life Policies | |||||||
In force Policies | 36,244 | 52,742 | 64,300 | 65,304 | 79,939 | 92,513 | |
Policies Terminated by Surrender | 1,177 | 820 | 953 | 1,226 | 1,212 | 2,647 | |
Policies Terminated by Lapse | 1,786 | 2,787 | 3,336 | 1,058 | 4,236 | 2,187 | |
Group Life Policies | |||||||
Discontinued | 8 | 10 | 26 | 28 | 215 | 92 | |
Annuities | 42 | 19 | 92 | 115 | 146 |
Source: Reserve Bank of Malawi
6.9 On-Site Examinations
The Registrar conducted on-site examinations of three life insurance companies and carried out quarterly offsite surveillance for all life insurances companies. Findings of the on-site examination included high level of premium receivables and weaknesses in capital and solvency position. Appropriate enforcement actions were taken by the Registrar to address these shortfalls.
4 2 | 4 3 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
7. MICROFINANCE Sector
7.1 Sector Overview
Overall, the performance of the microfinance sector was satisfactory in 2019. The sector recorded profitability, whilst asset quality and liquidity also remained within the industry benchmark. Aggregate assets for the sector increased to MK43.8 billion in December 2019 from MK38.1 billion in December 2018. Total number of registered and licensed microfinance institutions stood at 46; comprising 36 microcredit agencies, eight non-deposit taking institutions and two deposit taking institutions.
Deposit taking microfinance institutions served 148,914 clients, of which 62.1 percent were female. The number of clients increased from 39,412 in December 2018. In the non-deposit taking microfinance subsector, total clients served decreased to 240,032 of which 41.6 percent were female. Clients served in this subsector decreased from 359,166 in December, 2018 mainly on account of closure of one institution, merging of another with a banking institution and migration of one institution from non-deposit taking to deposit taking.
7.2 Deposit taking microfinance
7.2.1 Assets and Liabilities
Total assets of deposit taking microfinance institutions increased by 62.1 percent to MK20.0 billion in 2019 (Table 7.1). Growth in assets was on account of both increase in number of deposit taking institutions from 1 to 2 and growth in the loan portfolio during the review period. Gross loans for the sub-sector grew by 53.8 percent to MK14.3 billion in 2019.
In terms of liabilities, deposits increased to MK4.2 billion in December 2019 from MK2.8 billion in December 2018. Similarly, total borrowed funds increased to MK7.3 billion from MK3.9 billion in 2018.
Lending ratio4 increased to 340.5 percent as at December 2019 from 332.0 percent as at December 2018. The high ratio was a result of sub-sector's heavy reliance on borrowed funds to finance loans.
4 Lending ratio is equal to loans divided by deposits
4 4
The Registrar of Financial Institutions ANNUAL REPORT 2019
Table 7.1: Assets and liabilities for Deposit Taking Microfinance | |||||||||||||
Dec - 16 | Dec - 17 | Dec - 18 | Dec - 19 | ||||||||||
Share | Share | Share | Share | ||||||||||
Type of asset | MK'mn | (%) | MK'mn | (%) | MK'mn | (%) | MK'mn | (%) | |||||
Cash | 199.0 | 1.6 | 841.9 | 5.7 | 235.0 | 1.9 | 190.1 | 0.9 | |||||
Balances with other FI | 768.9 | 6.3 | 1,855.7 | 12.6 | 0.0 | 0.0 | 552.8 | 2.8 | |||||
Net Loans and leases | 7,557.0 | 62.3 | 7,592.6 | 51.7 | 8,929.9 | 72.0 | 13,912.2 | 69.3 | |||||
Securities and | |||||||||||||
investments | 1,562.2 | 12.9 | 1,880.0 | 12.8 | 783.4 | 6.3 | 657.4 | 3.3 | |||||
Other Assets | 2,033.2 | 16.8 | 2,529.4 | 17.2 | 2,461.5 | 19.8 | 4,753.6 | 23.7 | |||||
Total Assets | 12,120.4 | 100.0 | 14,699.6 | 100.0 | 12,409.8 | 100.0 | 20,006.1 | 100.0 | |||||
Type of liability | |||||||||||||
Deposits | 1,953.2 | 16.4 | 6,318.1 | 43.0 | 2,813.9 | 22.7 | 4,211.4 | 21.0 | |||||
Total borrowed funds | 6,196.6 | 50.8 | 4,426.5 | 30.1 | 3,884.9 | 31.3 | 7,339.6 | 36.6 | |||||
Other liabilities | 1,712.1 | 13.9 | 1,723.6 | 11.7 | 1,889.9 | 15.2 | 2,527.2 | 12.6 | |||||
Total Capital | 2,258.5 | 18.9 | 2,231.5 | 15.2 | 3,821.1 | 30.8 | 5,987.9 | 29.8 | |||||
Total Funding | 12,120.4 | 100.0 | 14,699.6 | 100.0 | 12,409.8 | 100.0 | 20,006.1 | 100.0 | |||||
7.2.2 Capital Adequacy
Capital adequacy for deposit taking microfinance institutions was satisfactory with tier 1 and total capital ratios at 24.1 percent and 30.7 percent as at December 2019. These were above the regulatory benchmark of 10.0 percent and 15.0 percent for tier 1 and total capital ratios, respectively (Figure 7.1).
4 5
The Registrar of Financial Institutions ANNUAL REPORT 2019
Figure 7.1: Capital Adequacy for Deposit Taking Microfinance | ||||||||||||
40,0% | ||||||||||||
35,0% | ||||||||||||
30,0% | ||||||||||||
25,0% | ||||||||||||
20,0% | ||||||||||||
15,0% | ||||||||||||
10,0% | ||||||||||||
5,0% | ||||||||||||
0 | Mar-17 | Mar-18 | Mar-19 | |||||||||
Dec-16 | Jun-17 | Sep-17 | Dec-17 | Jun-18 | Sep-18 | Dec-18 | Jun-19 | Sep-19 | Dec-19 | |||
■ Tier 1 Capital Ratio | ■ Total Capital Ratio | |||||||||||
■ Required Capital Ratio | ■ Required Total Capital Ratio | |||||||||||
Source: Reserve Bank of Malawi |
7.2.3 Asset Quality
The quality of assets for the sector improved during the period as indicated by a decrease in the NPL ratio to 4.3 percent in 2019 from 4.8 percent in 2018 (Figure 7.2). This was within the industry benchmark of 5.0 percent. However, non-performing loans increased by 41.3 percent to MK616.9 million as at December 2019. The rate of growth in non-performing loans was lower than the growth in the loan book which grew by 53.8 percent to MK14.3 billion in 2019.
Figure 7.2: Ratio of Non-performing Loans to Gross Loans and Leases
7.0% | ||||||||||||
6.0% | ||||||||||||
5.0% | ||||||||||||
4.0% | ||||||||||||
3.0% | ||||||||||||
2.0% | ||||||||||||
1.0% | ||||||||||||
0 | Mar-17 | Mar-18 | Mar-19 | |||||||||
Dec-16 | Jun-17 | Sep-17 | Dec-17 | Jun-18 | Sep-18 | Dec-18 | Jun-19 | Sep-19 | Dec-19 | |||
■ NPL/GPL | ■ Regulatory Ceiling |
Source: Reserve Bank of Malawi
The Registrar of Financial Institutions ANNUAL REPORT 2019
7.2.4 Earnings and Profitability
Total gross income for the subsector increased to MK9.7 billion in 2019 from MK6.3 billion in 2018, mainly on account of an increase in gross loans and improvement in asset quality. Interest income grew to MK9.4 billion in 2019 from MK6.1 billion in 2018. Correspondingly, interest expense increased to MK2.1 billion from MK1.4 billion in 2018; and non-interest expenses increased to MK6.9 billion from MK4.4 billion in 2018 (Table 7.2). As a result, net income decreased to MK0.2 billion in 2019 from MK0.3 billion in 2018. Consequently, Return on Assets (ROA) decreased to 1.2 percent from 2.4 percent in 2018; and Return on Equity (ROE) decreased to 4.1 percent from 7.9 percent in 2018.
Table 7.2: Earnings and Expenses for Deposit Taking Microfinance Institutions
Item (MK' bn) | 2016 | 2017 | 2018 | 2019 | |
Gross Income | 5.6 | 6.2 | 6.3 | 9.7 | |
Interest Income | 5.2 | 5.8 | 6.1 | 9.4 | |
Interest Expense | 1.8 | 1.9 | 1.4 | 2.1 | |
Non-Interest expense | 3.5 | 4.1 | 4.4 | 6.9 | |
Net income | 0.2 | 0.1 | 0.3 | 0.2 | |
ROA (%) | 1.9 | 0.8 | 2.4 | 1.2 | |
ROE (%) | 10 | 5.1 | 7.9 | 4.1 |
Source: Reserve Bank of Malawi
7.2.5 Liquidity
The sector recorded a liquidity ratio of 24.1 percent in December 2019 from 40.0 percent in December 2018. The decline was due to a relatively higher increase in short term liabilities than liquid assets. The ratio however, remained above the recommended benchmark of 20.0 percent.
7.3 Non-deposit taking microfinance
7.3.1 Assets and Liabilities
Total assets of the non-deposit taking microfinance subsector increased by 6.3 percent to MK23.7 billion in 2019 (Table 7.3). The growth in total assets was mainly due to an increase in net loans to MK16.6 billion as at December 2019 from MK11.5 billion as at December 2018. In terms of Liabilities, the subsector recorded a decrease in shareholder loans to MK1.0 billion from MK3.2 billion in 2018. However, other liabilities increased to MK11.9 billion from MK10.9 billion in 2018 (Table 7.3).
4 6 | 4 7 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
Table 7.3: Assets for Non-Deposit Taking Microfinance Institutions | |||||||||||||
Dec - 16 | Dec - 17 | Dec - 18 | Dec - 19 | ||||||||||
Share | Share | Share | Share | ||||||||||
Type of asset | MK'mn | (%) | MK'mn | (%) | MK'mn | (%) | MK'mn | (%) | |||||
Cash and cash equivalent | 3.3 | 14.2 | 1.8 | 7.9 | 1.1 | 5.0 | 1.9 | 7.4 | |||||
Investments and securities | 1.5 | 6.5 | 4.9 | 21.5 | 2.4 | 11.0 | 0.2 | 0.7 | |||||
Net loans and leases | 12.7 | 54.7 | 10.6 | 46.5 | 11.5 | 52.0 | 16.5 | 70.0 | |||||
Non-current assets | 1.7 | 7.4 | 3.6 | 15.8 | 5.0 | 22.0 | 3.1 | 13.3 | |||||
Other assets | 4.0 | 17.2 | 1.9 | 8.3 | 2.3 | 10.0 | 2.0 | 8.6 | |||||
Total Assets | 23.2 | 100.0 | 22.8 | 100.0 | 22.3 | 100.0 | 23.7 | 100.0 | |||||
Type of Liability | |||||||||||||
Shareholder loans | 4.0 | 17.2 | 3.2 | 14.0 | 3.2 | 14.0 | 1.0 | 4.2 | |||||
Short term borrowings | |||||||||||||
from banks | 1.5 | 6.5 | 0.3 | 1.0 | 0.0 | 0.0 | 0.4 | 1.9 | |||||
Capital and Reserves | 9.3 | 40.1 | 8.4 | 37.0 | 8.2 | 37.0 | 10.4 | 43.4 | |||||
Other liabilities | 8.4 | 36.2 | 10.9 | 48.0 | 10.9 | 49.0 | 11.9 | 50.5 | |||||
Total Equity &liabilities | 23.2 | 100.0 | 22.8 | 100.0 | 22.3 | 100.0 | 23.7 | 100.0 | |||||
Source: Reserve Bank of Malawi
7.3.2 Capital Adequacy
Total capital for non-deposit taking sub sector increased by 32.9 percent to MK10.9 billion in 2019. A total of 6 out 8 non-deposit taking microfinance institutions met the regulatory capital requirement of MK100.0 million.
4 8
The Registrar of Financial Institutions ANNUAL REPORT 2019
7.3.3 Asset Quality
Asset quality for non-deposit taking microfinance institutions as measured by NPL ratio remained constant at 8.5 percent. This was mainly due to equivalent increase in both gross loans and non-performing loans during the review period. The ratio remained above the regulatory benchmark of 5.0 percent.
7.3.4 Profitability
Total gross income increased by 33.3 percent to MK8.8 billion in 2019, primarily on account of an increase in gross loans. On the other hand, operating expenses increased to MK6.1 billion from MK4.6 billion in 2018. However, net income improved to MK976.3 million in 2019 from MK92.3 million in 2018.
7.3.5 On-site Examination
The Registrar conducted 11 on-site examinations of microfinance institutions in 2019. The major findings included non-disclosure of effective interest rates to customers. In addition, incidences of non-remittance of pension contributions and tax deductions to relevant authorities were common. The institutions took corrective action on the observed shortfalls.
7.4 Financial Cooperatives
7.4.1 Overview
Overall, the sector's performance was satisfactory. Total assets for the sector grew by 36.6 percent to MK26.1 billion in 2019. Net income grew by 40 percent to MK2.1 billion in 2019. As at end 2019, the sector had 38 licensed financial cooperatives of which 32 were employer based, while six were community based.
7.4.2 Assets and Liabilities
Total assets grew by 36.6 percent to MK26.1 billion in 2019 due to growth of loans and investments. The loans were financed by total savings5 which grew by 28.0 percent to MK18.3 billion in 2019 (Figure 7.3).
5 Include redeemable shares plus deposits
4 9
The Registrar of Financial Institutions ANNUAL REPORT 2019
Figure 7.3: Selected Assets and Liabilities for Financial Cooperatives
30 | |||||
25 | |||||
Billion | 20 | ||||
15 | |||||
MK' | 10 | ||||
5 | |||||
0 | 2016 | 2017 | 2018 | 2019 | |
2015 |
■ Total Assets ■ Shares and Savings ■ Loans
Source: Reserve Bank of Malawi
7.4.3 Financial Structure
Member loans and advances accounted for 63.2 percent of total assets against the sector's recommended best practice of between 70 to 80 percent during the year under review. This negatively affected the sectors' interest income and return on assets. As regards funding, the sector largely relied on member savings which accounted for 70.4 percent of total assets.
Table 7.4: Asset and Liabilities for the Financial Cooperatives Sector (MK' mn)
Type of Asset | 2015 | 2016 | 2017 | 2018 | 2019 | ||
Cash and Bank Balances | 573.6 | 702.8 | 945.0 | 1055.4 | 1,916.0 | ||
Securities and Investments | 940.1 | 1,158.7 | 642.1 | 953.3 | 3,031.8 | ||
Total Loans and Advances | 4,898.0 | 6,420.3 | 9,003.0 | 13,023.7 | 16,420.7 | ||
Other Assets | 1,212.1 | 1,716.9 | 3,529.4 | 4,107.9 | 4,699.0 | ||
Total Assets | 7,623.8 | 9,998.7 | 14,119.5 | 19,140.0 | 26,057.5 | ||
Type of Liability | |||||||
Deposits and Member Shares | 5,647.2 | 7,165.9 | 10,215.5 | 14,313.2 | 18,341.8 | ||
Liabilities to Other Banks | 526.6 | 262.2 | 221.4 | 366.1 | 900.5 | ||
Other Liabilities | 203.4 | 302.8 | 532.5 | 544.4 | 1,051.4 | ||
Total Capital | 1,246.6 | 2,267.8 | 3,150.1 | 3,916.3 | 5,683.8 | ||
Total Funding | 7,623.8 | 9,998.7 | 14,119.5 | 19,140.0 | 26,057.5 | ||
Source: Reserve Bank of Malawi
The Registrar of Financial Institutions ANNUAL REPORT 2019
7.4.4 Capital Adequacy
Overall, the sector was adequately capitalized. Total capital grew by 50.0 percent to MK5.4 billion in 2019 and accounted for 20.9 percent of risk weighted assets. Capital adequacy ratio at 20.9 percent was above the minimum regulatory requirement of 10.0 percent of risk weighted assets (Table 7.4).
Table 7.5: Financial Soundness Indicators for Financial Cooperatives
Recommended | |||||||
Indicator | Ratio | 2015 | 2016 | 2017 | 2018 | 2019 | |
Institutional Capital Ratio (%) | >10.0 | 11.3 | 20.1 | 20.5 | 19.1 | 20.9 | |
Non-performing loans/ | |||||||
Gross Loans (%) | < 5.0 | 5.8 | 3.2 | 5.6 | 5.6 | 5.7 | |
Liquidity (%) | > 10.0 | 15.9 | 16.1 | 13.8 | 12.1 | 18.7 | |
Net Income/Average | |||||||
Total Assets (%) | > 5.0 | 7.3 | 9.2 | 10.5 | 8.78 | 9.2 | |
Source: Reserve Bank of Malawi
7.4.5 Asset Quality
Total loans grew by 26.2 percent to MK16.4 billion in 2019. Non-performing loans amounted to MK930.9 million, representing an NPL ratio of 5.7 percent which was slightly above the recommended ceiling of 5.0 percent.
7.4.6 Earnings
Total income increased by 35.4 percent to MK6.5 billion in 2019 of which loan interest income constituted 96.9 percent (Figure 7.4). Total expenditure grew by 41.9 percent to MK4.4 billion in 2019. Notwithstanding the increase in total expenditure, net income increased by 40.0 percent to MK2.1 billion in 2019, representing a ROA of 9.2 percent.
5 0 | 5 1 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
Figure 7.4: Income, Expenses and Profit/Loss Trends for Financial Cooperatives
7,000.00 | ||||
6,000.00 | ||||
5,000.00 | ||||
4,000.00 | ||||
3,000.00 | ||||
2,000.00 | ||||
1,000.00 | ||||
0 | 2016 | 2017 | 2018 | 2019 |
2015 |
■ Total Income ■ Total Expenses ■ Net Profit/Loss
Source: Reserve Bank of Malawi
7.4.7 Liquidity
On aggregate, the sector reported a liquidity ratio of 18.7 percent in 2019, which was above the regulatory minimum of 10.0 percent6. Nonetheless, the sector's unremitted payroll deductions increased to MK2.4 billion from MK2.0 billion in 2018, largely from the public sector.
6 The liquidity ratio is defined as net liquid assets over the sum of redeemable shares and savings deposits
5 2
The Registrar of Financial Institutions ANNUAL REPORT 2019
7.4.8 Membership
Total membership grew by 22.4 percent to 151,221 in 2019 and of these, 31 percent were female, a slight decrease from 32 percent recorded in 2018 (Figure 7.5). The increase was mainly due to membership mobilization initiatives championed by the Registrar in collaboration with the Malawi Union of Savings and Credit Cooperatives (MUSCCO).
Figure 7.5: Financial Cooperatives Membership
120,000.00 | |||||||
100,000.00 | |||||||
Billion | 80,000.00 | ||||||
60,000.00 | |||||||
MK' | 40,000.00 | ||||||
20,000.00 | |||||||
0.00 | 2792 | 493 | 1903 | 2425 | 2543 | ||
2015 | 2016 | 2017 | 2018 | 2019 | |||
■ Men | ■ Women | ■ Groups |
Source: Reserve Bank of Malawi
7.4.9 On-site Examination
The Registrar conducted ten on-site examinations and ten follow up examinations of financial cooperatives in 2019. Examination findings showed continued improvement in all key financial performance indicators.
5 3
The Registrar of Financial Institutions ANNUAL REPORT 2019
8. CONSUMER PROTECTION
8.1 Overview
The number of financial consumer complaints increased in 2019 compared to 2018. The Registrar continued to undertake various financial literacy initiatives aimed at bolstering financial consumer awareness. In addition, market conduct examinations of financial institutions were carried out with the objective of establishing the extent of compliance with market conduct regulations.
8.2 Complaints Handling
The number of complaints received by the Registrar increased slightly to 275 in 2019 from 257 in 2018. A total number of 339 complaints were processed in 2019, of which 64 were carried forward from 2018. In terms of composition, microfinance and financial cooperatives sectors registered 107 complaints, the insurance sector had 95 complaints, the banking sector had 70 complaints, and the capital markets sector had three complaints, (Figure 8.1).
Figure 8.1: Number of Complaints Received Per Sector
160 | |||||||||
of Complaints | 140 | ||||||||
120 | |||||||||
100 | |||||||||
80 | |||||||||
Number | 60 | ||||||||
40 | |||||||||
20 | |||||||||
0 | Microfinance | Insurance | Banks | Pensions | Payments | Capital | |||
& Financial | Systems | Markets | |||||||
Cooperatives | |||||||||
■ 2015 | ■ 2016 | ■ 2017 | ■ 2018 | ■ 2019 |
Source: Reserve Bank of Malawi
A total of 320 complaints were successfully resolved, compared to 203 complaints in the preceding year. Out of these, 113 cases related to poor customer care, 121 complaints due to financial abuse, 16 bordered on inadequate disclosure while 43 cases were due to lack of financial awareness and capability on the part of consumers. The remaining seven complaints arose out of other causes. (Figure 8.2)
The Registrar of Financial Institutions ANNUAL REPORT 2019
Figure 8.2: Composition in Nature and Number of Complaints Resolved
160 | ||||||||
Complaints | 140 | |||||||
120 | ||||||||
100 | ||||||||
80 | ||||||||
of | ||||||||
60 | ||||||||
Number | ||||||||
40 | ||||||||
20 | ||||||||
0 | Poor | Inadequate | Lack of | Over-indebt- Financial | Other | |||
Financial | ||||||||
Abuse | Customer | Disclosure | Financial | edness | fraud | |||
Care | awareness | |||||||
■ 2015 | ■ 2016 | ■ 2017 | ■ 2018 | ■ 2019 |
Source: Reserve Bank of Malawi
8.3 Market Conduct Supervision
The Registrar carried out market conduct on-site examinations of two banks, one insurance company and two credit reference bureaux. In addition, six mystery surveillances were conducted for banks, insurance, microfinance and financial cooperatives. Major findings included inadequate transparency and disclosure of information on services and products; and lack of key fact statements on product terms and conditions. Appropriate enforcement actions were taken by the Registrar to address the market conduct breaches.
8.4 Financial Literacy
8.4.1 Highlights of Financial Literacy Activities implemented
There were a number of financial literacy activities that were implemented during the year including Global Money Week, Credit Awareness Week, workplace financial education initiative and capacity building workshops for community leaders.
The Global Money Week is an international financial education and inclusion initiative that aims at raising the youth and children's awareness of effective money management matters and access to financial services and products. In 2019, the initiative reached out to over 3000 students.
5 4 | 5 5 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
The Registrar held a credit awareness week to sensitise the public on effective personal credit management practices; benefits of borrowing from licensed and registered financial institutions; and maintaining a good credit history. During the credit awareness week, 4,000 employees of 120 private and public organizations, 500 religious leaders and 1,500 micro, small and medium enterprises were reached through workshops and town hall meetings. In addition, credit awareness messages were aired on the local media to maximize outreach and impact.
The Registrar also conducted capacity building workshops for community leaders including women groups, micro, medium and small enterprises and farmers in eight districts. The workshops covered financial planning; saving; investing; personal credit management; and benefits of accessing formal financial services and products. For sustainability, the activities were conducted in collaboration with District Financial Literacy Committees established by the Registrar in 2018.
Further, training of trainers workshops in personal finance management were conducted for 200 human resources personnel and practitioners from various organizations.
In a bid to standardise financial literacy messages for public use, standard financial literacy core messages, specifically for the rural communities, were designed and developed. This was done in collaboration with the Financial Access for Rural Markets and Small Enterprises (FARMSE), a project under the Ministry of Finance, Planning and Economic Development.
8.4.2 National Financial Literacy Strategy (2020-2024)
The Registrar in collaboration with stakeholders, embarked on development of a National Financial Literacy Strategy covering the period 2020 to 2024. The focus of the Strategy is on financial education initiatives for marginalized groups such as women, youth, micro, small and medium enterprises and farmers. In addition, the Strategy will integrate emerging thematic financial literacy topics on maintaining a good credit record, digital financial services and inclusive finance.
The Registrar of Financial Institutions ANNUAL REPORT 2019
9. AN TI - MONEY L AUNDERING
The Registrar conducted several activities pertaining to Anti-Money Laundering and Combating of Financing of Terrorism (AML/CFT) to ensure that all financial institutions are in compliance with AML/CFT laws.
9.1 AML/CFT Offsite Surveillance
The Registrar conducted Money Laundering/Terrorist Financing (ML/TF) offsite risk assessment for all banking institutions in order to determine the overall ML/TF risk profile of the sector. The exercise involved assessment of the ML/TF inherent risk and risk management practices that banks have adopted to mitigate those risks. Further, an analysis of bi-annual offsite returns was also conducted with the aim of timely identification of ML/TF risk in banking institutions. Both assessments indicated that banks have enhanced their risk management practices in mitigating ML/TF risks.
In addition, the Registrar intends to commence offsite ML/TF risk assessment for non- bank financial institutions (Insurance, Capital Markets and Microfinance). As such, the institutions submitted annual questionnaires used for assessment of ML/TF risk assessment. Feedback meetings with the institutions were held to discuss gaps noted from the assessment and challenges faced in completing the questionnaires. The institutions committed to provide improved data in the subsequent submissions.
9.2 On-Site Examinations
The Registrar conducted full scope AML/CFT on-site examinations on one bank, one life insurer, one microfinance and two capital markets institutions. In addition, a follow up on-site examination was conducted on one microfinance institution. The examinations established that financial institutions had, amongst other things, conducted ML/TF risk assessments; conducted adequate AML/CFT training and awareness programs to members of staff; enhanced their AML/CFT policies; and enhanced record keeping. Notwithstanding these improvements, some shortfalls were noted such as inadequate ongoing monitoring systems and practices, and customer due diligence measures.
9.3 Mutual Evaluation Assessment
Malawi underwent AML/CFT Mutual Evaluation assessment by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) which commenced in June 2018 and was finalized in June 2019. The Mutual Evaluation Report (MER) for Malawi was discussed and adopted during the ESAAMLG's 38th Task Force meeting of Senior Officials held in September 2019. The report included findings on effectiveness of supervision, monitoring and regulation of reporting institutions in respect of compliance with AML/CFT requirements. Further, the MER recommended measures to address the noted gaps.
5 6 | 5 7 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
10. LEGAL and REGUL ATORY DEVELOPMENTS
10.1 Overview
The Registrar continued to strengthen the legal and regulatory framework for the financial sector through issuance of new and revised directives in 2019. A total of seven directives were issued in the year. In addition, the Registrar issued revised guidelines for licensing of insurance entities, and cyber security risk management guidelines for the banking industry.
10.2 Laws and Regulations
The following regulations and directives came into force during 2019:
- Insurance (Inclusive Insurance) Directive, 2019;
- Insurance (Reserving Requirements for General Insurers and Reinsurers) Directive, 2019;
- Financial Services (Transactions of Prudentially Regulated Microfinance Institutions with Related Parties) Directive, 2019;
- Financial Services (Record Keeping Requirements for Microfinance Services Providers) Directive, 2019;
- Financial Services (External Audit and Related Matters for Microfinance Institutions) Directive, 2019;
- Financial Services (Transaction Processing Hub) Directive, 2019;
- Financial Services (Capital Adequacy Requirements for Deposit Taking Microfinance Institutions (Amendment) Directive, 2019.
10.3 Licensing, Mergers and Acquisitions
The Registrar registered and licensed the following financial institutions:
- One Development Finance Institution
- Six insurance brokers;
- Four insurance agents;
- Two micro-credit agencies;
- One non deposit taking microfinance institution;
- One deposit taking microfinance institution;
- One investment advisor;
- Three Pension funds.
In addition, the Registrar granted the following regulatory approvals:
- Acquisition of 87 percent shareholding in Axis Pensions Limited by Zamara Actuaries, Administrators and Consultants Limited of Kenya;
- Sale of majority shareholding in Guardian Insurance Services limited to Readers Investments Limited;
- Airtel Malawi PLC Initial Public Offer of 1,650,000,000 shares for listing on the Malawi Stock Exchange; and
- National Bank of Malawi plc to acquire 75.0 percent shareholding in Akiba Commercial Bank of Tanzania.
The Registrar of Financial Institutions ANNUAL REPORT 2019
11. Supervisory FUNDS
The Registrar collected a total of MK573, 984,282.91 in supervisory levies, charges and fees, broken down as follows:
- Supervisory levies, fees and penalties: MK365,644,031.02
- Registration and licensing of banks and foreign exchange bureaus: MK48,993,346.67
- Registration and licensing of insurance and microfinance companies: MK12,810,000.00
- Registration and licensing of dealers and brokers: MK97,654,905.22
- Registration and licensing of pension entities: MK785,000.00
- National Payments Systems fees, penalties and fines: MK48,097,000.00
The money collected was used to partly defray the cost of carrying out regulatory and supervisory activities as follows:
- Supervision of commercial banks: MK155,041,358.51
- Supervision of insurance and pension entities: MK133,694,189.25
- Supervision of capital market and microfinance institutions: MK98,097,160.09
-
Processing of directives, regulations and guidelines for the financial sector:
MK346,377,514.15
These costs are exclusive of staff costs which the Registrar also incurred.
5 8 | 5 9 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
12. APPENDICES
STATISTICAL ANNEX TABLES
Table 12.1: Branch Network and Staff Complement for Banks in 2019
Agencies, | Auto | |||||||
Name of Institution | Branches | satellite kiosks, | Teller | |||||
mobile vans | Machines | |||||||
2018 | 2019 | 2018 | 2019 | 2018 | 2019 | |||
CDH Investment Bank Ltd | 3 | 3 | 1 | 1 | 1 | 0 | ||
Ecobank Malawi Ltd | 8 | 8 | 0 | 0 | 23 | 23 | ||
FDH Bank Ltd | 19 | 21 | 34 | 30 | 92 | 92 | ||
First Merchant Bank Ltd | 7 | 7 | 24 | 23 | 61 | 52 | ||
National Bank of Malawi Ltd | 15 | 16 | 16 | 17 | 126 | 129 | ||
NBS Bank Ltd | 12 | 12 | 38 | 33 | 71 | 67 | ||
Nedbank Malawi Ltd | 9 | 9 | 2 | 2 | 26 | 26 | ||
New Finance Bank | 6 | 7 | 0 | 12 | 11 | 10 | ||
Standard Bank Malawi | 27 | 27 | 2 | 2 | 83 | 97 | ||
Leasing and Finance | 0 | 0 | 0 | 0 | 0 | 0 | ||
Opportunity Bank | 0 | 0 | 0 | 0 | 0 | 0 | ||
TOTAL | 106 | 110 | 118 | 120 | 494 | 496 | ||
Table 12.2: Trends in Market Share of two dominant banks (%)
Equity | |||||
Assets | Loans | Deposits | capital | ||
2015 | 47.7 | 49.7 | 50.4 | 56.9 | |
2016 | 51.5 | 53.2 | 52.7 | 61.8 | |
2017 | 50.9 | 56.2 | 51.2 | 58.6 | |
2018 | 46.0 | 58.1 | 46.2 | 60.0 | |
2019 | 46.14 | 56.2 | 46.1 | 58.3 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
Table 12.3 Financial Soundness Indicators for Banks | ||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||
Capital Ratios | ||||||
Regulatory Total Capital to | ||||||
Risk Weighted Assets | 16.1 | 16.7 | 19.3 | 18.8 | 21.0 | |
Regulatory Tier 1 Capital to | ||||||
Risk Weighted Assets | 12.7 | 13.8 | 15.0 | 15.4 | 17.0 | |
Total Capital to Total Assets | 16.9 | 17.0 | 16.2 | 16.0 | 16.7 | |
Asset Composition and Quality (Percent) | ||||||
Total Loans and Advances to Total Assets | 39.8 | 35.4 | 28.1 | 30.7 | 33.7 | |
Foreign Currency Loans to Total Loans | ||||||
and Advances | 28.7 | 21.8 | 27.9 | 25.6 | 23.5 | |
Non-Performing Loans to Gross Loans | ||||||
and Advances | 10.7 | 17.0 | 15.7 | 6.1 | 6.3 | |
Non-Performing Loans (Net of Provisions) | ||||||
to Capital | 16.8 | 44.5 | 28.4 | 14.8 | 9.2 | |
Earnings And Profitability Ratios | ||||||
Return on Assets (ROA) | 3.2 | 3.0 | 2.3 | 2.3 | 2.7 | |
Return on Equity (ROE) | 20.1 | 20.4 | 15.7 | 17.3 | 20.5 | |
Interest Income to Total Income | 50.6 | 49.5 | 72.7 | 67.4 | 66.4 | |
Non-Interest Income to Total Income | 50.4 | 50.0 | 27.3 | 32.6 | 33.6 | |
Personal Expenses to | ||||||
Non-Interest Expenses | 46.2 | 43.8 | 44.2 | 42.6 | 43.0 | |
Liquid Assets to Total Assets | 43.3 | 51.2 | 55.9 | 45.1 | 40.4 | |
Liquid Assets to Total Deposits and | ||||||
Short Term Liabilities | 59 | 72.3 | 77.0 | 61.8 | 58.9 | |
Total Loans to Total Deposits | 58.3 | 54.2 | 45.1 | 47.1 | 54.2 | |
Foreign Exchange Liabilities | ||||||
to Total Liabilities | 26.6 | 24.3 | 21.5 | 18.7 | 15.6 | |
Liquid Assets to Total Assets | 43.3 | 51.2 | 55.9 | 45.7 | 40.4 | |
6 0 | 6 1 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
Table 12.4: Deposits Held by Banks (MK' mn)
Demand | Savings | Time | Total | ||||
Period | Deposits | Deposits | Deposits | FCDA's | Deposits | ||
Mar-16 | 244,628.0 | 115,724.0 | 137,615.0 | 194,593.0 | 692,562.0 | ||
Jun-16 | 251,515.0 | 121,366.0 | 152,359.0 | 231,138.0 | 756,379.0 | ||
Sep-16 | 267,904.0 | 146,525.0 | 194,780.0 | 238,779.0 | 847,990.0 | ||
Dec-16 | 265,302.0 | 134,059.0 | 161,687.0 | 247,995.0 | 809,044.0 | ||
Mar-17 | 277,250.0 | 138,559.0 | 152,996.0 | 238,168.0 | 806,974.0 | ||
Jun-17 | 318,880.0 | 150,546.0 | 158,482.0 | 261,844.0 | 889,752.0 | ||
Sep-17 | 333,884.0 | 152,601.0 | 177,731.0 | 237,526.0 | 901,742.0 | ||
Dec-17 | 353,108.0 | 158,508.0 | 200,630.0 | 283,276.0 | 995,522.0 | ||
Mar-18 | 334,857.0 | 163,872.0 | 216,043.0 | 244,541.0 | 959,314.0 | ||
Jun-18 | 366,949.0 | 169,029.0 | 229,958.0 | 247,185.0 | 1,013,122.0 | ||
Sep-18 | 380,555.0 | 184,183.0 | 234,684.0 | 230,645.0 | 1,030,069.0 | ||
Dec-18 | 405,859.0 | 183,243.0 | 265,376.0 | 233,376.0 | 1,008,128.0 | ||
Mar -19 | 410,519.0 | 178,270.0 | 279,050.0 | 225,731.0 | 1,093,570.0 | ||
Jun -19 | 419,651.0 | 190,482.0 | 269,163.0 | 253,540.0 | 1,132,836.0 | ||
Sep-19 | 417,170.0 | 200,539.0 | 310,296.0 | 221,297.0 | 1,149,302.0 | ||
Dec-19 | 460,684.0 | 216,728.0 | 273,975.0 | 223,872.0 | 1,175,258.0 | ||
Table 12.5: Capital Adequacy Trends for Banks | |||||||
Risk | Tier 1 | Total | |||||
Tier 1 | Total | Weighted | Ratio | Capital | |||
Capital | Capital | Assets | Capital | Ratio | |||
Period | MK' mn | MK' mn | MK' mn | (%) | (%) | ||
Mar-16 | 119,373.0 | 147,293.0 | 814,586.0 | 14.7 | 18.1 | ||
Jun-16 | 120,608.0 | 151,987.0 | 838,729.0 | 14.4 | 18.1 | ||
Sep-16 | 132,502.0 | 161,218.0 | 938,393.0 | 14.1 | 13.7 | ||
Dec-16 | 123,516.0 | 151,648.0 | 900,227.0 | 17.2 | 16.8 | ||
Mar-17 | 146,809.0 | 177,371.0 | 911,413.0 | 16.1 | 19.5 | ||
Jun-17 | 160,248.0 | 201,467.0 | 958,135.0 | 16.7 | 21.0 | ||
Sep-17 | 152,888.0 | 194,936.0 | 960,925.0 | 15.9 | 20.3 | ||
Dec-17 | 153,813.0 | 197,469.0 | 1,025,744.0 | 15.0 | 19.3 | ||
Mar-18 | 166,460.0 | 207,804.0 | 1,012,843.0 | 16.4 | 20.5 | ||
Jun-18 | 165,842.0 | 205,588.0 | 1,071,737.0 | 15.5 | 19.2 | ||
Sep-18 | 167,958.0 | 205,990.0 | 1,091,635.0 | 15.4 | 18.9 | ||
Dec-18 | 172,570.0 | 211,171.0 | 1,120,641.0 | 15.4 | 18.8 | ||
Mar-19 | 197,322.0 | 238,148.0 | 1,150,511.0 | 17.2 | 20.7 | ||
Jun-19 | 200,518.0 | 248,597.0 | 1,219,275.0 | 16.4 | 20.4 | ||
Sep-19 | 199,226.0 | 247,260.0 | 1,230,966.0 | 16.2 | 20.1 | ||
Dec-19 | 215,606.0 | 267,113.0 | 1,270,947.0 | 17.0 | 21.0 | ||
The Registrar of Financial Institutions ANNUAL REPORT 2019
Table 12.6: Selected Income and Expenses for Banks (MK' mn)
Total | Non- | ||||||
Gross | Interest | Interest | Interest | Operating | |||
Period | Income | Income | Income | Expense | Expenses | ||
Mar-16 | 58,167.0 | 41,647.0 | 16,520.0 | 13,661.0 | 27,650.0 | ||
Jun-16 | 147,906.0 | 106,633.0 | 41,273.0 | 29,658.0 | 71,612.0 | ||
Sep-16 | 209,286.0 | 151,353.0 | 57,933.0 | 48,691.0 | 106,127.0 | ||
Dec-16 | 255,629.0 | 184,101.0 | 71,527.0 | 57,474.0 | 128,887.0 | ||
Mar-17 | 68,154.0 | 49,908.0 | 18,247.0 | 15,596.0 | 32,406.0 | ||
Jun-17 | 137,645.0 | 102,034.0 | 35,612.0 | 31,739.0 | 66,776.0 | ||
Sep-17 | 211,165.0 | 155,917.0 | 55,248.0 | 47,153.0 | 101,994.0 | ||
Dec-17 | 273,255.0 | 198,759.0 | 74,497.0 | 59,958.0 | 135,699.0 | ||
Mar-18 | 68,877.0 | 48,372.0 | 20,505.0 | 14,481.0 | 34,481.0 | ||
Jun-18 | 140,429.0 | 97,062.0 | 43,367.0 | 29,236.0 | 72,547.0 | ||
Sep-18 | 209,810.0 | 144,724.0 | 65,085.0 | 44,005.0 | 108,543.0 | ||
Dec-18 | 288,112.0 | 194,250.0 | 93,862.0 | 59,844.0 | 149,102.0 | ||
Mar-19 | 70,950.0 | 50,341.0 | 20,609.0 | 14,105.0 | 37,612.0 | ||
Jun-19 | 155,646.0 | 104,921.0 | 50,725.0 | 26,841.0 | 80,871.0 | ||
Sep-19 | 233,865.0 | 156,841.0 | 77,024.0 | 41,148.0 | 120,920.0 | ||
Dec-19 | 323,886.0 | 215,127.0 | 108,760.0 | 54,483.0 | 167,624.0 | ||
Table12.7: Selected Profitability Indicators for Banks | |||||||
Interest | Efficiency | Return | Return | ||||
Margin | Ratio | on Equity | on Assets | ||||
Period | (%) | (%) | (%) | (%) | |||
Mar-16 | 13.3 | 47.5 | 20.4 | 3.0 | |||
Jun-16 | 18.0 | 48.4 | 31.1 | 4.6 | |||
Sep-16 | 15.7 | 50.7 | 21.7 | 3.2 | |||
Dec-16 | 14.2 | 50.4 | 20.4 | 3.0 | |||
Mar-17 | 85.8 | 47.5 | 21.3 | 3.2 | |||
Jun-17 | 85.2 | 48.5 | 18.5 | 2.7 | |||
Sep-17 | 88.8 | 48.3 | 16.8 | 2.5 | |||
Dec-17 | 83.7 | 49.7 | 15.7 | 2.3 | |||
Mar-18 | 11.0 | 50.1 | 8.3 | 1.1 | |||
Jun-18 | 10.9 | 51.7 | 16.9 | 2.3 | |||
Sep-18 | 10.7 | 51.7 | 15.5 | 2.1 | |||
Dec-18 | 10.1 | 51.8 | 17.3 | 2.3 | |||
Mar-19 | 10.4 | 53.0 | 14.6 | 1.9 | |||
Jun-19 | 10.9 | 52.0 | 21.2 | 2.8 | |||
Sep-19 | 10.7 | 51.7 | 19.4 | 2.6 | |||
Dec-19 | 10.9 | 51.8 | 20.5 | 2.7 |
6 2 | 6 3 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
Table12.8: Liquidity for Banks | ||||||||||||
Liquid Assets to Total | Rate Sensitive | |||||||||||
Deposits and Short | Liquid Assets | Assets/Rate | ||||||||||
Term Liabilities | to Total Deposits | Sensitive Liabilities | ||||||||||
Period | Percent | Percent | Percent | |||||||||
Mar-16 | 59.7 | 64.6 | 96.3 | |||||||||
Jun-16 | 66.1 | 71.3 | 96.5 | |||||||||
Sep-16 | 87.3 | 74.7 | 98.9 | |||||||||
Dec-16 | 72.3 | 78.5 | 100.3 | |||||||||
Mar-17 | 68.8 | 75.2 | 99.9 | |||||||||
Jun-17 | 71.4 | 78.6 | 98.7 | |||||||||
Sep-17 | 76.0 | 86.5 | 101.8 | |||||||||
Dec-17 | 77.0 | 88.3 | 99.0 | |||||||||
Mar-18 | 75.8 | 82.1 | 91.2 | |||||||||
Jun-18 | 58.1 | 62.9 | 93.2 | |||||||||
Sep-18 | 59.3 | 66.3 | 89.1 | |||||||||
Dec-18 | 61.8 | 70.2 | 87.4 | |||||||||
Mar-19 | 61.4 | 66.1 | 76.9 | |||||||||
Jun-19 | 59.6 | 65.8 | 82.3 | |||||||||
Sep-19 | 54.5 | 59.6 | 78.3 | |||||||||
Dec-19 | 58.9 | 65.0 | 81.9 | |||||||||
Table 12.9: Shareholding Structure of Banks | ||||||||||||
Banking Institution | Name of Shareholder | Percentage | ||||||||||
Held | ||||||||||||
CDH Investment Bank Limited | Continental Holdings Limited | 81.0 | ||||||||||
Investment Alliance Limited | 10.0 | |||||||||||
Kesaart Capital Limited | 4.8 | |||||||||||
Unity Investment | 1.8 | |||||||||||
Savannah Investment Limited | 2.4 | |||||||||||
Ecobank Malawi Limited | Ecobank Transnational Incorporated Limited | 96.0 | ||||||||||
Loita Capital Partners International | 4.0 | |||||||||||
FDH Bank Malawi Limited | FDH Financial Holdings Limited | 93.7 | ||||||||||
Malawi Government | 5.0 | |||||||||||
MSB Employee Share Owning Plan | 1.3 | |||||||||||
The Registrar of Financial Institutions ANNUAL REPORT 2019
Banking Institution | Name of Shareholder | Percentage | ||
Held | ||||
First Discount House Limited | FDH Financial Holdings Limited | 100.0 | ||
First Capital Bank | FMB Capital Holdings Plc | 100.0 | ||
National Bank of Malawi | Press Corporation Ltd | 51.5 | ||
Old Mutual Malawi Ltd | 23.0 | |||
Nico Life Pension Fund | 5.9 | |||
General Public | 19.6 | |||
NBS Bank Limited | NICO Holdings Limited | 50.1 | ||
Continental Holdings Limited | 9.3 | |||
Cam Nominees Public Service Pension Trust | 2.5 | |||
Fund | ||||
NAML Public Service Pension Trust | 1.7 | |||
Public Share | 36.4 | |||
Nedbank Malawi Limited | NedGroup Investments Africa | 99.7 | ||
Nedbank Group Ltd | 0.3 | |||
MyBucks Banking Corporation | MyBucks SA | 100.0 | ||
Standard Bank of Malawi | Ltd Stanbic Africa Holdings | 60.2 | ||
Limited | Nico Holdings Limited | 20.0 | ||
Old Mutual Life Assurance Company (Malawi) | 5.4 | |||
Ltd | ||||
Press Trust | 2.3 | |||
Magetsi Pension Fund | 1.4 | |||
National Investment Trust Limited | 1.2 | |||
Sucoma Pension Fund | 0.8 | |||
Savjani Ramesh Haridas | 0.7 | |||
Stanbic Bank Limited Pension Fund | 0.6 | |||
NBM Pension Fund | 0.5 | |||
6 4 | 6 5 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
Table 12.10: Selected Stock Market Statistics | ||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||
MASI (points) | 14,562.5 | 13,320.5 | 21,598.1 | 28,983.5 | 30,252.2 | |
DSI (points) | 11,462.9 | 10,456.9 | 16,272.6 | 21,318.1 | 23,599.8 | |
FSI (points) | 1,762.1 | 2,026.1 | 3,519.4 | 5,265.1 | 4,024.9 | |
Market Capitalisation (MK billion) | 7,522.1 | 8,516.5 | 10,609.5 | 1,284.7 | 1,428.8 | |
Market Capitalisation (US$ billion) | 11.3 | 11.7 | 14.6 | 1.8 | 1.9 | |
Number of transactions | 1,220 | 913 | 1,189 | 2,153 | 3,064 | |
Volume traded (million) | 2,355.3 | 410.9 | 698.9 | 958.2 | 1,393.8 | |
Value traded (MK million) | 48,592.1 | 6,196.1 | 13,516.2 | 48,695.9 | 46,371.0 | |
Value traded (US$ million) | 101.9 | 8.6 | 19.0 | 67.0 | 63.6 |
Table 12.11: Gross Premium Written for General Insurers (MK' mn)
Class of Business | 2015 | 2016 | 2017 | 2018 | 2019 | ||
Fire | 3,946.6 | 6,158.2 | 7,264.9 | 8,290.5 | 9,529.1 | ||
Motor | 18,980.2 | 21,531.3 | 24,686.5 | 28,133.2 | 31,108.8 | ||
Personal Accident | 2,488.3 | 4,010.6 | 3,952.4 | 4,635.7 | 5,012.4 | ||
Miscellaneous | 4,776.9 | 3,835.1 | 5,776.3 | 7,642.5 | 9,336.7 | ||
Total | 30,192.0 | 35,535.2 | 41,680.2 | 48,701.9 | 54,987.0 | ||
Table 12.12: Premiums and Retention Ratio for General Insurers (MK' mn)
Item | 2015 | 2016 | 2017 | 2018 | 2019 | |
Gross Direct Premium | 29,899.2 | 35,176.7 | 41,285.7 | 48,185.9 | 54,615.9 | |
Inward Reinsurance Premium | 448.2 | 292.8 | 273.0 | 516.0 | 371.1 | |
Reinsurance Premium Ceded | 6,526.8 | 8,898.0 | 9,941.6 | 12,680.6 | 15,616.3 | |
Net Premium Written | 23,665.1 | 26,995.7 | 31,738.7 | 36,021.3 | 39,370.8 | |
Retention Ratio | 78.4% | 75.0% | 76.1% | 74.0% | 71.6% | |
Table 12.13: Reinsurance Premium Ceded by Class of Business (MK' mn)
Class of business | 2015 | 2016 | 2017 | 2018 | 2019 | |||
Fire | 2,777.8 | 4,029.4 | 4,987.3 | 5,976.9 | 7,665.6 | |||
Motor | 1,280.7 | 1,477.2 | 804.7 | 1,064.6 | 926.9 | |||
Personal Accident | 762.1 | 1,262.0 | 1,079.9 | 1,402.6 | 1,627.2 | |||
Miscellaneous | 1,706.3 | 2,129.4 | 3,069.7 | 4,236.5 | 5,396.5 | |||
Total | 6,526.8 | 8,898.0 | 9,941.6 | 12,680.6 | 15,616.3 | |||
The Registrar of Financial Institutions ANNUAL REPORT 2019
Table 12.14: Net Premium Written by Class of Business (MK' mn)
Class of insurance | 2015 | 2016 | 2017 | 2018 | 2019 | ||
Fire | 1,168.8 | 2,128.4 | 2,277.7 | 2,283.4 | 7,665.6 | ||
Motor | 17,699.5 | 20,054.1 | 23,881.8 | 26,934.8 | 926.9 | ||
Personal Accident | 1,726.2 | 2,748.6 | 2,872.5 | 3,245.4 | 1,627.2 | ||
Miscellaneous | 3,070.6 | 1,705.8 | 2,706.7 | 3,367.5 | 5,396.5 | ||
Total | 23,665.1 | 26,637.2 | 31,738.7 | 35,831.2 | 15,616.3 | ||
Table 12.16: Earned Premiums of General Insurers | |||||||
Class of insurance | 2015 | 2016 | 2017 | 2018 | 2019 | ||
Fire | 849.0 | 2,287.2 | 2,069.0 | 2,393.2 | 1,813.7 | ||
Motor | 17,255.3 | 18,837.5 | 22,591.9 | 26,021.5 | 29,892.7 | ||
Personal Accident | 1,574.9 | 2,585.1 | 2,710.6 | 3,079.5 | 3,376.7 | ||
Miscellaneous | 3,106.3 | 1,686.8 | 2,546.2 | 3,315.8 | 3,938.1 | ||
Total | 22,785.5 | 25,396.6 | 29,917.7 | 34,809.9 | 39,021.2 | ||
Table 12.17: Gross Claims Incurred by General Insurers by Class of Business | |||||||
Class of insurance | 2015 | 2016 | 2017 | 2018 | 2019 | ||
Fire | 1,724.3 | 4,200.4 | 2,631.0 | 4,424.8 | 5,464.6 | ||
Motor | 13,087.3 | 13,880.1 | 14,546.3 | 16,088.0 | 19,568.7 | ||
Personal Accident | 1,738.1 | 2,029.3 | 1,562.6 | 1,589.4 | 1,518.7 | ||
Miscellaneous | 1,676.2 | 1,550.5 | 1,830.4 | 2,453.5 | 4,121.1 | ||
Total | 18,225.8 | 21,660.2 | 20,570.2 | 24,555.7 | 30,673.1 |
Table 12.18: Net Claims Incurred by General Insurers by Class of Business (MK' mn)
Class of insurance | 2015 | 2016 | 2017 | 2018 | 2019 | ||
Fire | 445.8 | 531.9 | 790.4 | 2,257.5 | 1,140.4 | ||
Motor | 11,330.6 | 12,310.4 | 13,259.3 | 14,757.4 | 18,318.5 | ||
Personal Accident | 895.5 | 1,173.6 | 1,106.0 | 1,243.0 | 1,254.4 | ||
Miscellaneous | 1,100.7 | 910.6 | 1,225.7 | 1,523.3 | 2,195.3 | ||
Total | 13,772.6 | 14,926.6 | 16,381.4 | 19,781.1 | 22,908.5 | ||
6 6 | 6 7 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
Table 12.19: Claims Ratio for General Insurers by Class of Business | ||||||
Class of insurance | 2015 | 2016 | 2017 | 2018 | 2019 | |
Fire | 52.5 | 23.3 | 38.2 | 94.3 | 62.9 | |
Motor | 65.7 | 65.4 | 58.7 | 56.7 | 61.3 | |
Personal Accident | 56.9 | 45.4 | 40.8 | 40.4 | 37.1 | |
Miscellaneous | 35.4 | 54.0 | 48.1 | 45.9 | 55.7 | |
Overall | 60.4 | 58.8 | 54.8 | 56.8 | 58.7 |
Table 12.20: Claims Experience for General Insurers (MK' mn)
2015 | 2016 | 2017 | 2018 | 2019 | ||
Gross Claims Incurred | 18,225.8 | 21,660.2 | 20,570.2 | 24,555.7 | 30,673.1 | |
Net Claims Incurred | 13,772.6 | 14,926.6 | 16,381.4 | 19,781.1 | 22,908.5 | |
Recoveries on Reinsurance | 4,453.2 | 6,733.6 | 4,188.8 | 4,588.8 | 7,764.6 | |
Claims Paid | 16,047.6 | 19,845.5 | 19,929.7 | 23,051.3 | 28,387.8 | |
Outstanding Claims | 6,450.5 | 7,697.7 | 7,968.7 | 9,184.1 | 11,289.2 | |
Claims Ratio (%) | 60.4 | 58.8 | 54.8 | 56.8 | 58.7 |
Table 12.21: Operating Results for General Insurers (MK' mn)
2015 | 2016 | 2017 | 2018 | 2019 | ||
Underwriting Results | 7,679.7 | 9,128.8 | 11,915.2 | 12,969.4 | 14,352.1 | |
Net Investment & Other Income | 3,096.7 | 3,781.0 | 4,365.7 | 3,809.8 | 3,287.8 | |
Management Expenses | 6,360.1 | 9,538.3 | 11,757.7 | 13,197.9 | 13,836.6 | |
Other Expenses | 12.3 | 88.1 | 347.4 | - | - | |
Pre-tax Profit | 4,404.1 | 3,414.1 | 4,175.7 | 3,556.1 | 3,803.3 | |
Taxation | 1,371.0 | 1,171.2 | 1,430.6 | 1,161.8 | 1,222.8 | |
Profit for the year | 3,033.1 | 2,242.9 | 2,745.1 | 2,394.3 | 2,580.5 | |
Table 12.22: Underwriting and Operating Ratios for General Insurers | ||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||
Underwriting Ratio | 33.7 | 35.9 | 39.8 | 37.3 | 36.8 | |
Combined Ratio | 100.6 | 109.1 | 108.1 | 100.7 | 98.7 | |
Management Ratio | 27.9 | 37.6 | 39.3 | 37.9 | 35.5 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
Table 12.23: Underwriting Results for General Insurers by Class of Business | ||||||||
Class of insurance | 2015 | 2016 | 2017 | 2018 | 2019 | |||
Fire | 397.6 | 1,792.7 | 1,252.9 | 224.6 | 1,185.7 | |||
Motor | 4,732.8 | 5,306.0 | 7,745.2 | 9,419.5 | 9,352.6 | |||
Personal Accident | 540.3 | 1,263.0 | 1,336.6 | 1,601.4 | 1,760.3 | |||
Miscellaneous | 2,008.9 | 897.9 | 1,580.4 | 1,723.8 | 2,053.6 | |||
Total | 7,679.7 | 9,259.6 | 11,915.2 | 12,969.4 | 14,352.1 | |||
Table 12.24: Market Share for General Insurers in 2019 (MK' mn)
Gross Premium | Total Assets | |||||
Insurance company | MK'million | % | MK'million | % | ||
Britam Insurance | 7,597.5 | 13.8 | 8,284.7 | 14.8 | ||
Co-operatives General Insurance | 1,406.5 | 2.6 | 2,273.2 | 4.1 | ||
General Alliance Insurance | 6,015.2 | 10.9 | 9,736.1 | 17.4 | ||
Liberty General Insurance | 3,868.2 | 7.0 | 1,950.8 | 3.5 | ||
NICO General Insurance | 18,351.7 | 33.4 | 18,672.1 | 33.5 | ||
Prime Insurance | 7,484.7 | 13.4 | 3,258.2 | 5.8 | ||
Reunion Insurance | 4,056.5 | 7.4 | 4,512.5 | 8.1 | ||
United General Insurance | 6,206.7 | 11.3 | 7,116.4 | 12.8 | ||
Total | 54,987.0 | 100.0 | 55,804.0 | 100.0 | ||
Table 12.25: Assets and Liabilities of General Insurers (MK' mn)
2015 | 2016 | 2017 | 2018* | 2019 | |||
Assets | |||||||
Fixed Assets for own use | 1,828.6 | 2,602.1 | 3,200.7 | 4,279.7 | 4,502.2 | ||
Real Property Investments | 422.7 | 662.0 | 718.2 | 1,386.0 | 1,512.9 | ||
Govt. & Other Securities | 4,733.1 | 5,564.0 | 6,996.6 | 5,103.0 | 2,288.0 | ||
Equity Investments | 2,947.7 | 3,211.0 | 4,090.5 | 5,746.7 | 6,271.9 | ||
Fixed Deposit Investments | 6,968.6 | 5,670.5 | 8,501.5 | 14,456.1 | 20,776.6 | ||
Other Investments | - | 69.1 | 69.3 | 856.6 | 376.6 | ||
Loans & Debentures | 646.9 | 69.3 | 64.8 | 11.0 | 20.6 | ||
**Insurance Receivables | 8,155.4 | 10,881.5 | 11,513.4 | 12,499.3 | 14,561.7 | ||
Cash and Cash Equivalents | 906.7 | 3,879.3 | 3,197.3 | 3,114.5 | 2,749.2 | ||
Other Assets | 3,238.4 | 5,498.0 | 4,586.6 | 2,334.3 | 2,744.4 | ||
Total Assets | 29,847.9 | 38,106.9 | 42,939.0 | 49,787.3 | 55,804.0 | ||
6 8 | 6 9 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
2015 | 2016 | 2017 | 2018* | 2019 | |||
Liabilities | |||||||
Unearned Premiums Reserve | 7,055.2 | 8,241.0 | 10,061.6 | 11,209.2 | 11,559.2 | ||
***Outstanding Claims Reserve | 8,692.9 | 10,587.6 | 11,260.0 | 11,765.0 | 14,348.9 | ||
Amounts Payable on Reinsurance | 1,565.6 | 1,623.2 | 2,514.0 | 3,440.4 | 4,098.0 | ||
Long Term Liabilities | - | 4.7 | - | 132.8 | 153.7 | ||
Provision for Taxation | 598.6 | 643.4 | 487.5 | 345.5 | 533.2 | ||
Amounts Payable to Banks | 130.0 | 271.7 | 102.9 | 96.4 | 32.8 | ||
Other Liabilities | 1,735.3 | 2,734.6 | 3,791.8 | 4,936.1 | 6,141.8 | ||
Total Liabilities | 19,777.6 | 24,106.3 | 28,217.8 | 31,925.4 | 36,867.5 | ||
Equity/Shareholders' Funds | 10,070.2 | 14,000.6 | 14,721.2 | 17,861.9 | 18,936.5 | ||
Total Equity and Liabilities | 29,847.9 | 38,106.9 | 42,939.0 | 49,787.3 | 55,804.0 | ||
- Restated figures
- Include receivables from reinsurers and policy holders
- Include reserves for IBNR & expenses
Source: Reserve Bank of Malawi
Table 12.26: Assets for Life Insurers (MK' mn)
Asset Item | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||
Fixed Assets | 2,285.4 | 2,815.3 | 2,384.7 | 2,505.9 | 2,577.7 | 2,431.2 | 2,634.1 | ||
Shares | 97,096.3 | 119,349.6 | 131,987.6 | 139,210.1 | 204,528.0 | 314,092.4 | 369,447.3 | ||
Fixed deposits | 32,805.5 | 45,427.6 | 35,444.3 | 29,752.0 | 23,081.3 | 34,236.0 | 83,185.2 | ||
Securities | 20,054.3 | 31,381.2 | 71,384.7 | 104,259.6 | 165,080.9 | 218,618.8 | 208,781.9 | ||
Real Estate | 7,625.4 | 9,456.1 | 10,339.4 | 11,553.1 | 15,937.1 | 9,832.3 | 11,148.4 | ||
Cash and Bank Balances | 809.1 | -47.4 | 4,083.3 | 4,425.2 | 5,075.2 | 2,930.2 | 3,153.3 | ||
Debtors | 2,727.3 | 4,147.4 | 3,146.5 | 8,992.0 | 7,498.9 | 5,335.0 | 2,795.8 | ||
Other assets | 7,112.6 | 10,788.2 | 17,315.9 | 32,016.8 | 52,033.3 | 32,138.3 | 50,755.0 | ||
Total Assets | 170,515.9 | 223,318.0 | 276,086.1 | 332,714.7 | 473,234.7 | 619,614.2 | 731,901.0 |
Table 12.27: Premium Distribution for Life Insurers (MK'mn; %)
Item | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | |
Life Insurance | ||||||||
Premiums | 7,276.5 | 9,380.0 | 18,618.8 | 19,281.5 | 23,3022 | 29,651.0 | 35,538.8 | |
Premium Ceded | 698.4 | 686.0 | 1,322.7 | 1,081.0 | 662.3 | 903.7 | 1,269.4 | |
Net Premium | 6,578.1 | 8,694.0 | 17,296.1 | 18,200.5 | 22,639.9 | 28,747.2 | 34,538.8 | |
Retention Ratio (%) | 90.4 | 92.7 | 92.9 | 94.0 | 97.2 | 97.0 | 96.5 | |
Premium Ceded Ratio (%) | 9.6 | 7.3 | 7.1 | 6.0 | 2.8 | 3.0 | 3.5 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
Table 12.28: Gross Premium of Life Insurers (MK'bn) | |||||||||||||||||||||
Item | |||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | ||||||||||||||||||
Gross Premium | 19.28 | 23.36 | 29.7 | 35.8 | |||||||||||||||||
Individual Life | 7.33 | 8.47 | 10.5 | 11.9 | |||||||||||||||||
Group Risk | 8.71 | 7.89 | 10.9 | 13.1 | |||||||||||||||||
Annuity | 3.24 | 7.01 | 8.3 | 10.8 | |||||||||||||||||
Table 12.29 Market Share for Life Insurers in 2019 | |||||||||||||||||||||
Gross Premium | Total Assets | ||||||||||||||||||||
Insurance company | MK'million | % | MK'million | % | |||||||||||||||||
Co-operative Life Insurance | 543.9 | 1.5 | 1,012 | 0.14 | |||||||||||||||||
NICO Life Insurance | 13,876.8 | 38.8 | 310,519 | 42.4 | |||||||||||||||||
Old Mutual Life Insurance | 17,291.2 | 48.3 | 407,924 | 55.7 | |||||||||||||||||
Smile Life Insurance | 745.5 | 3.1 | 1,464 | 0.2 | |||||||||||||||||
Vanguard Life | Insurance | 3,350.7 | 9.4 | 10,980.7 | 1.5 | ||||||||||||||||
Total | 35,808.1 | 100 | 731,901 | 100 | |||||||||||||||||
Table 12.30: New Individual Life Insurance Policies Underwritten | |||||||||||||||||||||
Item | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||
No. of Policies | 5,885 | 9,370 | 10,044 | 13,565 | 13,819 | 22,949 | 21,326 | 23,320 | |||||||||||||
Sum Insured | |||||||||||||||||||||
(MK'mn) | 5,278.2 | 8,552.9 | 14,422.6 | 20,487.5 | 22,246.2 | 31,207.4 | 26,406.0 | 29,706 | |||||||||||||
Annual Premium | |||||||||||||||||||||
(MK'mn) | 635.2 | 932.6 | 1,424.90 | 2,197.8 | 5,363.5 | 4,014.9 | 2,965.2 | 3,916.7 | |||||||||||||
Table 12.31: New Group Life Insurance Policies Underwritten | |||||||||||||||||||||
Item | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||
No of Policies | 490 | 242 | 193 | 108 | 155 | 217 | 175 | 305 | |||||||||||||
Sum Insured | |||||||||||||||||||||
(MK'mn) | 792.60 | 6775.6 | 4,147.4 | 1,458.0 | 4,546.4 | 15,613.9 | 180,373 | 223,208 | |||||||||||||
Annual Premium | |||||||||||||||||||||
(MK'mn) | 81.4 | 292.2 | 168.7 | 4,205.00 | 3,526 | 4,183.2 | 1,940.2 | 1,618.6 | |||||||||||||
7 0 | 7 1 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
Table 12.32: Life Insurance Policies Terminated by Surrender | |||||||||||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||
No of Policies | 610 | 3,282 | 1,117 | 820 | 953 | 1226 | 1212 | 2,647 | |||||||||||
Sum Insured | |||||||||||||||||||
(MK' mn) | 293.20 | 790.90 | 1,065.00 | 549.2 | 1.018 | 0.819 | 0.182 | 1,190.8 | |||||||||||
Annual Premium | |||||||||||||||||||
(MK' mn) | 28.8 | 163.9 | 100.8 | 65.6 | 105.5 | 0.774 | 0.918 | 295.5 | |||||||||||
Table 12.33: Group Life Insurance Policies Discontinued | |||||||||||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||
No of Policies | 3 | 1 | 8 | 10 | 26 | 28 | 215 | 92 | |||||||||||
Sum Insured | |||||||||||||||||||
(MK' mn) | 154.0 | 3.70 | 4,520.9 | 1,465.0 | 1,136.8 | 31.8 | 6,045 | 8,157 | |||||||||||
Annual Premium | |||||||||||||||||||
(MK' mn) | 2.6 | 342.4 | 66.59 | 15.2 | 150.1 | 126.8 | 141.5 | 131.2 | |||||||||||
Table 12.34: Life Insurance Policies Terminated by Lapse | |||||||||||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||
No of Policies | 1,029 | 2,273 | 1,786 | 2,787 | 3,336 | 1,058 | 4236 | 2,187 | |||||||||||
Sum Insured | |||||||||||||||||||
(MK'mn) | 725.5 | 2,351.0 | 359.4 | 1,500.3 | 2,041.4 | 560.5 | 6,057 | 3,204 | |||||||||||
Annual Premium | |||||||||||||||||||
(MK'mn) | 83.6 | 602.5 | 134.7 | 141.7 | 223.4 | 48.8 | 834.0 | 327.3 | |||||||||||
Table 12.35: Assets for Financial Cooperatives (MK'mn) | |||||||||||||||||||
Cash | Securities | Total | |||||||||||||||||
and Bank | and Invest- | Loans and | Other | Total | |||||||||||||||
Balances | ments | Advances | Assets | Assets | |||||||||||||||
Dec-12 | 268.4 | 221.3 | 2,553.9 | 515.5 | 3,559.1 | ||||||||||||||
Dec-13 | 293.5 | 447.4 | 2,689.1 | 839.4 | 4,269.4 | ||||||||||||||
Dec-14 | 469.9 | 422.5 | 3,210.2 | 822.5 | 4,925.1 | ||||||||||||||
Dec-15 | 573.6 | 940.1 | 4,898.0 | 1,212.1 | 7,623.8 | ||||||||||||||
Dec-16 | 702.8 | 1,158.7 | 6,420.3 | 1,716.9 | 9,998.7 | ||||||||||||||
Dec-17 | 945.0 | 642.1 | 9,003.0 | 3,529.4 | 14,119.5 | ||||||||||||||
Dec-18 | 1,055.4 | 953.3 | 13,023.7 | 4,107.9 | 19,140.3 | ||||||||||||||
Dec-19 | 1,916.0 | 3,031.8 | 16,420.7 | 4,699.0 | 26,057.5 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
Table 12.36: Liabilities for Financial Cooperatives (MK'mn)
Deposits | Liabilities | Total | ||||
and | to | Capital | ||||
Member | Financial | Other | Total | and | ||
Period | Shares | Institutions | Liabilities | Capital | Liabilities | |
Dec-12 | 2,455.5 | 427.9 | 234.9 | 440.8 | 3,559.1 | |
Dec-13 | 3,683.2 | 647.5 | 22.1 | (83.4) | 4,269.4 | |
Dec-14 | 4,170.4 | 395.9 | 104.2 | 254.6 | 4,925.1 | |
Dec-15 | 5,647.2 | 526.6 | 203.4 | 1,246.6 | 7,623.8 | |
Dec-16 | 7,165.9 | 262.2 | 302.8 | 2,267.8 | 9,998.7 | |
Dec-17 | 10,215.6 | 221.4 | 532.4 | 3,150.1 | 14,119.5 | |
Dec-18 | 14,313.2 | 366.1 | 544.4 | 3,916.3 | 19,140.0 | |
Dec-19 | 18,341.8 | 900.5 | 1,051.4 | 5,683.8 | 26,057.5 | |
Table 12.37: Selected Income and Expenses for Financial Cooperatives (MK'mn)
Total | Non- | ||||||
Gross | Interest | Interest | Interest | Operating | Net | ||
Period | income | Income | income | expense | expense | income | |
Dec-12 | 924.0 | 775.7 | 148.3 | 99.7 | 817.6 | 6.7 | |
Dec-13 | 1,145.6 | 927.7 | 217.9 | 78.0 | 901.3 | 166.3 | |
Dec-14 | 1,545.8 | 1,214.6 | 331.2 | 96.5 | 1,188.2 | 261.1 | |
Dec-15 | 2,119.5 | 2,063.7 | 55.8 | 104.1 | 1,521.0 | 494.4 | |
Dec-16 | 2,742.8 | 2,604.4 | 138.4 | 94.9 | 1,839.9 | 808.0 | |
Dec-17 | 3,926.5 | 3,782.1 | 144.4 | 127.6 | 2,528.9 | 1,270.0 | |
Dec-18 | 4,753.6 | 4,625.7 | 127.8 | 194.7 | 3,114.4 | 1,471.4 | |
Dec-19 | 6,478.5 | 6,417.4 | 61.1 | 262.2 | 4,118.2 | 2,098.1 | |
7 2 | 7 3 |
13. | LIST OF LICENSED MARKET PL AYERS | AGENTS FOR BROKERS | 16. | Infinity Insurance Agency | 10. | Towera Nyirenda | |||||
AS AT 31ST DECEMBER 2019 | 1. | FDH Bank Limited | 17. | Lingalithu Insurance | 11. | Sonke Chisomo Sowa | |||||
2. | National Bank of Malawi | Agency | 12. | Eluby Napolo | |||||||
BANKS | 8. | United General Insurance | Limited | 3. | Standard Bank Plc | 18. | Liberty Insurance Agency | 13. | Davie Nkhoma | ||
1. | CDH Investment Bank Ltd | Company Limited | 8. | Guardian Insurance | 4. | MyBucks Banking | 19. | Mandate Insurance | 14. | Wendy Nyasulu | |
2. | Ecobank Malawi Ltd | Brokers Limited | Corporation | Agency | 15. | Matilda Msekawanthu | |||||
3. | FDH Bank Ltd | LIFE INSURANCE | 9. | Hubertus Clausius | 5. | NBS Bank Plc | 20. | Milanzi Insurance Agency | 16. | Alex John | |
4. | First Capital Bank Malawi | COMPANIES | (Malawi) Limited | 21. | Nata Insurance Agency | 17. | Dolla Singano | ||||
Plc | 1. | Co-operatives Life | 10. | Kingfisher Insurance | INSURANCE CLAIM | 22. | Orama Insurance Agency | 18. | Chisomo Msampha | ||
5. | National Bank of Malawi | Assurance Limited | Brokers Limited | SETTLING AGENTS | 23. | Premier Insurance | 19. | Dorica Mbenje | |||
Plc | 2. | NICO Life Insurance | 11. | Mahogany Insurance | 1. | Cliente Insurance Claim | Agency | 20. | Watson Mwalilino | ||
6. | NBS Bank Plc | Company Limited | Brokers Limited | Settling Agency | 24. | Quality Insurance Agency | 21. | Gabriel Kachigayo | |||
7. | Nedbank Malawi Ltd | 3. | Old Mutual Life | 12. | Marsh Malawi Limited | 25. | Reliable Insurance | 22. | Cecilia Kwinyani | ||
8. | MyBucks Banking | Assurance Company | 13. | MicroEnsure Brokers | FUNERAL SERVICES | Agency | 23. | Hawa Nancy Harawa | |||
Corporation Limited | (Malawi) Limited | 14. | Minet Malawi Insurance | INSURANCE PROVIDERS | 26. | Resilient Insurance | 24. | Hannah Rachel Zulu | |||
9. | Standard Bank Malawi | 4. | Smile Life Insurance | Brokers Limited | 1. | Zingsure (Pvt) Limited | Agency | 25. | George Mbalati | ||
Plc | Company Limited | 15. | RBI Risk Advisors Limited | 2. | Central Springs Funeral | 27. | Sun Insurance Agency | 26. | Chisomo Chitukwi | ||
5. | Vanguard Life Assurance | 16. | Rhino Insurance Brokers | Insurance Company | 28. | Ultimate Insurance | 27. | Taonga Singini | |||
DISCOUNT HOUSES | Company Limited | Limited | Limited | Agency | 28. | Dereck White Sande | |||||
1. | First Discount House Ltd | 17. | Star Insurance Brokers | 29. | Vision Insurance Agency | 29. | Alinafe Kampaliro | ||||
REINSURANCE COMPANIES | Limited | GENERAL INSURANCE | 30. | Vitu Insurance Agency | 30. | Ireen Mseka | |||||
CREDIT REFERENCE | 1. | Emeritus Reinsurance | 18. | Trinity Insurance Brokers | AGENTS | 31. | Vivid Insurance Agency | 31. | Doris Labani | ||
BUREAUS | Company Limited | Limited | 1. | Anchor Insurance | 32. | W.T. Thundu Insurance | 32. | Eveless Banda | |||
1. | Trans Union Limited | 19. | All One Insurance | Agency | Agency | 33. | Andrew Chakulangira | ||||
2. | Credit Data Credit | REINSURANCE BROKERS | Brokers Limited | 2. | Central Insurance Agency | 33. | Noble Insurance Agency | 34. | Michael Singini | ||
Reference Bureau Ltd | 1. | Equity Reinsurance | 20. | Makz Insurance Brokers | 3. | CHC Insurance Agency | 34. | Legacy Insurance Agency | 35. | Carleen Maganga | |
Brokers Limited | Limited | 4. | Chisangalalo Insurance | 35. | Victory Insurance Agency | 36. | Michael Valantine | ||||
GENERAL INSURANCE | 21. | Cover Your Asset | Agency | Gulaimfa | |||||||
COMPANIES | INSURANCE BROKERS | Insurance Brokers | 5. | Coconut Insurance | LIFE INSURANCE AGENTS | 37. | Kondwani Kamwana | ||||
1. | Britam Insurance | 1. | Budget Insurance | Limited | Agency | AND REPRESENTATIVES | 38. | Paul Chriss Sabola | |||
Company Malawi Limited | Services Limited | 22. | Senate Insurance Brokers | 6. | Connerc Insurance | 39. | Agness Chirwa | ||||
2. | Co-operatives General | 2. | Blackrose Insurance | Limited | Agency | NICO Life Insurance | 40. | Precious Banda | |||
Insurance Limited | Brokers Company | 23. | Midas Insurance Brokers | 7. | Direct Insurance Agency | Agents | 41. | Innocent Maenje | |||
3. | General Alliance | Limited | Limited | 8. | Donatti Insurance | 42. | Dan Videde | ||||
Insurance Limited | 3. | Canopy Insurance | 24. | Equatorial Insurance | Agency | 1. | Dyress Magoya | 43. | Samuel Yohane | ||
4. | Liberty General Insurance | Brokers Limited | Brokers Limited | 9. | Falcon Insurance Agency | 2. | Maher Mitchells | Kamphako | |||
Company Limited | 4. | City State International | 25. | Thofu Insurance Brokers | 10. | Favour Insurance Agency | 3. | Austin Mumba | 44. | Aubrey Zalira | |
5. | NICO General Insurance | Limited | Limited | 11. | Future Insurance Agency | 4. | Tionge Kaimfa | 45. | Victor Chikaphonya | ||
Company Limited | 5. | Eagle Insurance Brokers | 26. | Southern Africa Health | 12. | Gateway Insurance | 5. | Chikondi Nkanda | 46. | Timothy Makolija | |
6. | Prime Insurance | Limited | Insurance Brokers and | Agency | 6. | Evertar Chinsolo | 47. | Paul Kachala | |||
Company Limited | 6. | Express Insurance | Advisors Limited | 13. | HB Insurance Agency | 7. | Tiwonge Kitta | 48. | Grace Mwanza | ||
7. | Reunion Insurance | Brokers Limited | 14. | Hamax Insurance Agency | 8. | Josophine Kondowe | 49. | Catherine Kaluwa | |||
Company Limited | 7. | GG Insurance Brokers | 15. | Ibex Insurance Agency | 9. | Ellen Kanondo | 50. | Sunganani Byson |
7 4 | 7 5 |
51. | Katunga Louisa | 94. | Dennis Wesley | 137. | Getrude Masala | 180. | Feza Chikondi | 223. | Ian Kapyanga | 13. | Brian Mtendewan |
52. | Faith T. Kadziwe | 95. | Millie Cornilia | 138. | Brenda Mselu | 181. | Manda Nezzaar | 224. | Cubaless Mbalawira | 14. | Captain Dulla |
53. | Mitulo Constance | 96. | Makoko Chirwa | 139. | Lottie Maziya | 182. | Chado Aubrey | 225. | Chifundo Limani | 15. | Ceaseria Sokela |
54. | Gibson Singini | 97. | Ison Mwandira | 140. | Whitney Mhango | 183. | Mbiri Linda | 226. | Chrissy Mwase | 16. | Charity Kamwendo |
55. | Loveness Chiwaya | 98. | Esther Kadzombe | 141. | Gift Zidana | 184. | Mtalika Gasten | 227. | Jimmy Kaira | 17. | Chimango Mwandira |
56. | Ivy Bwanali | 99. | Florence Kunkhanda | 142. | Daniel Chinseu | 185. | Mulima Victoria | 228. | Rodrick Kalinga | 18. | Chimwemwe Katsache |
57. | Kellly Mumbo | 100. | Fungai Nyaude | 143. | Sadick Numeri Mdoka | 186. | Chiunge Grace | 229. | Andrew Dalo | 19. | Chimwemwe Moyo |
58. | Paul Sipolo | 101. | Dorothy Kodo | 144. | Chrissy Kumwenda | 187. | Chafumuka Daniel | 230. | Petros Ndakoiwa | 20. | Chimwemwe Natasha |
59. | Ellen Ntajili | 102. | Patricia Chinseu | 145. | Kadammanja Mac | 188. | Watson Chirambo | 231. | Mirriam Mumba | Mkandawire | |
60. | Precious Nanthuru | 103. | Maria Mwafulirwa | 146. | Muwira Rhoda | 189. | Njobvu Getrude | 232. | Lydia Chakalamba | 21. | Chris Chikapa |
61. | Mwatipasa Kawalewale | 104. | Robert Dodoma | 147. | Ghambi Iris | 190. | Phalula Chimwemwe | 233. | Chally Shonga | 22. | Christina Jere |
62. | Clever Magazine | 105. | Sosten Mpomba | 148. | Mhango Dan | 191. | Waya Walter | 234. | Amosi Namondwe | 23. | Clever Makwiti |
63. | Wendy Malipa | 106. | Doreen Pondeponde | 149. | Ngonga Atusaye | 192. | Chimombo Madalitso | 235. | Stive Liwera | 24. | Cliff Chapomba |
64. | Brenda Chaposa | 107. | Nizia Lupiya | 150. | Chinthenga Yamikani | 193. | Mmanga Arthur | 236. | Misozi Kafaamveka | 25. | Daniel Maseko |
65. | Mike Chichitike | 108. | Amon Kuyokwa | 151. | Tamvekenji Olive | 194. | Hau Ellen | 237. | Nellie Makumba | 26. | Dennis Mtalika |
66. | Mercy Lampiao | 109. | Beatrice Lungu | 152. | Ng'oma Anthony | 195. | Nandolo Olive | 238. | Sungeni Kishindo | 27. | Dingani Chisi |
67. | Mary Chibaira | 110. | Lonjezo Palikena | 153. | Tambala Titani | 196. | Sadyalunda Phillip | 239. | Mwai Zimpita | 28. | Edda Semele |
68. | Virginia Petro | 111. | Phalyce Kumdana | 154. | Mwenda Lenton | 197. | Ndamuwa Chimwemwe | 240. | Wongani Mkandawire | 29. | Eddah Manyenje |
69. | Nitalice Mdoka Phillips | 112. | Jailos Matola | 155. | Kapapa Lusungu | 198. | Sangala Pamela | 241. | Dingase Phuza | 30. | Elipher Makwinja |
70. | Charles Phylis Goliati | 113. | Chimwemwe Gumbo | 156. | Manda Brian | 199. | Mbendera Sara | 242. | Ireen Kudzowe | 31. | Elizabeth Gondwe |
71. | Ireen Masalino | 114. | Edith Phiri | 157. | Mphamba Alex | 200. | Nankwenya Shanny | 243. | Zelesi Mlaka | 32. | Ellen Kaunda |
72. | Blessings Banda | 115. | Edwin Phiri | 158. | Chimphonda Charles | 201. | Nyirenda Menard | 244. | Sheilla Chimaliro | 33. | Ephraim Khulukhusya |
73. | Davie Gama | 116. | Binna Mwambira | 159. | Musukwa Moses | 202. | Sumani Kenneth | 245. | Yohani Mtambo | Nyirenda | |
74. | Zainabu Mandanda | 117. | James Bilale | 160. | Nyirenda Constence | 203. | Mwakiseghile Esco | 246. | Mwayi Winiko | 34. | Esther Zam'mimba |
75. | Martin Mkandawire | 118. | Aubrey Umali | 161. | Mhango Keffa | 204. | Thom Ollen | 247. | Julius Mfune | 35. | Ethel Gomani |
76. | Theona Maveya | 119. | Phadress Limbani | 162. | Mseka Chikondano | 205. | Mwamondwe Kondwani | 248. | Prudedence Zulu | 36. | Fanuel Chapempha |
77. | Bridget Saukira | 120. | Carolyne Lester Chirwa | 163. | Tenthani Ulemu | 206. | Misomali Clara | 249. | Chikondi Nkanda | 37. | Faith Gwiramwendo |
78. | Evelyn Malikwa | 121. | Mphatso Banda | 164. | Banda Phylis | 207. | Kamwenje Beatrice | 250. | Evertar Chinsolo | 38. | Fiskani Chiyendawamba |
79. | Janet Chekani | 122. | Goodson Chizaka | 165. | Chisi Martha | 208. | Mlambala Pilirani | 39. | Francis Maluwa | ||
80. | Blessings Chisoni | 123. | Charity Mkwala | 166. | Vyazala Spencer | 209. | Colless Nkowani | Old Mutual Life | 40. | Geoffrey Gama | |
81. | Lusekelo Mwanyula | 124. | Esther Khamalatha | 167. | Sonia Ngosi | 210. | Solomon Chizaka | Assurance Agents | 41. | Getrude Gondwe | |
82. | Austin Balala | 125. | John Nkata | 168. | Enerst Chilenje | 211. | Joan Gadama | 1. | Aaron Mzungu | 42. | Getrude Mvaya |
83. | Pamela Golowa | 126. | Daniel Nyasulu | 169. | Nyirongo Tainess | 212. | Linda Ng'ambi Chellah | 2. | Aaron Mkandawire | 43. | Getrude Mandowa |
84. | Brenda Bauleni | 127. | Bezita Mtonga | 170. | Kasaru Ellen | 213. | Sophie Bvumbwe | 3. | Angella Bulla | 44. | Gift Moyo |
85. | Belinda Khonyongwa | 128. | Mansfield Mbonekera | 171. | Nkolimbo Thoko | 214. | Stewart Ngwira | 4. | Annie Galloway Chombo | 45. | Happy Chilale |
86. | Patrick Phiri | 129. | Khumbo Kachere | 172. | Mtanga Gladys | 215. | Cyrus Kandodo | 5. | Beverley Mwangonde | 46. | Happy Tembo |
87. | Arkangel Luhanga | 130. | Emily Gondwe | 173. | Nsanama Catherine | 216. | Milliam Chanza | 6. | Blassings Kamchira | 47. | Harlod Khulupirire |
88. | Angella Chimpanzo | 131. | Joshua Zimba | 174. | Kadewere Sphiwe | 217. | Bridget Kalulu | 7. | Blessings Kamanga | 48. | Hetherwick Mvura |
89. | Mac Donald Banda | 132. | Chimwemwe Mahiyo | 175. | Nkangala Nellie | 218. | Josephine Msisi | 8. | Blessings Msonkho | 49. | Innocent Banda |
90. | Chancy Maluwa | 133. | Caroline Chiwaya | 176. | Ghambi Paul | 219. | Ellen Kadzuwa | 9. | Blessing Msowoya | 50. | Isaac Mandala |
91. | Tamika Mezuwa | 134. | Elizabeth Kalumba | 177. | Govati Zenasi | 220. | Chikondi Chikaonda | 10. | Blessings Nkhambula | 51. | Jean Minjale |
92. | Chisomo Banda | 135. | Martha Benito | 178. | Chipinda Victor | 221. | Fortune Chapweteka | 11. | Bonita Kadzani | 52. | Jenepher Mseteka |
93. | Phiri Jane | 136. | Jane Nkhoma | 179. | Kundaje Reinhard | 222. | Beatrice Chinyama | 12. | Brenda Chioza | 53. | Jessie Teki |
7 6 | 7 7 |
54. | Jessy Nyasulu | 96. | Samuel Kachala | 22. | Zaithwa Joshua | 65. | Patricia Chitanda | Assessors | Company Limited | ||
55. | Jooma Milongwe | 97. | Sellina Chisale | 23. | Wezi Phiri | 66. | Patrick Bandawe | 12. | M & O Insurance | 6. | Continental Pension |
56. | Josephine Kachala | 98. | Sigele Selemani | 24. | Daniel Mwenje | 67. | Peter Nyirenda | Adjustors | Services Company | ||
57. | Joyce Mphezu | 99. | Spencer Maiden | 25. | Michael Tembo | 68. | Salomy Chavula | 13. | MIC Associates Insurance | Limited | |
58. | Katrina Chirwa | 100. | Sphiwe Chipala | 26. | Cynthia Sabiti | 69. | Shadreck Banda | Adjustors | 7. | Mahogany Insurance | |
59. | Kennedy Msiska | 101. | Stain Akimu | 27. | Doreen Ndeule | 70. | Sharon Chipeta | 14. | Miles Insurance Loss | Brokers Limited | |
60. | Khomba Mlambala | 102. | Stella Lichapa Chiuzeni | 28. | Edward Mughogho | 71. | Stain Chibisa | Adjustor | 8. | Vanguard Pension | |
61. | Kingsley Tchale | 103. | Steve Mwafulirwa | 29. | Elizabeth Magalasi | 72. | Stella Kachilala | 15. | MT Insurance Loss | Services Company | |
62. | Kondwani Kumwenda | 104. | Suedi Majawa | 30. | Elizabeth Mustmoir | 73. | Susan Maseko | Assessor | |||
63. | Kondwani Munthali | 105. | Tadala Chiwaya | 31. | Ellijah Yollam | 74. | Tamanda Kankhuni | 16. | PDCA Consultants | PENSION BROKERS | |
64. | Kumbukani Jimusole | 106. | Takondwa Muphuwa | 32. | Enock Kamphonje | 75. | Thandie Nthengwe | 17. | Precision Aviation and | 1. | Marsh (Malawi) Limited |
65. | Light Lita | 107. | Temwanani Nazombwe | 33. | Ester Munthali | 76. | Thoko Hande | General Engineering | 2. | AON (Malawi) Limited | |
66. | Lizzie Chilapondwa | 108. | Thoko Lumwira | 34. | Eunice Chatepa | 77. | Tichitenji Mwango | Services | 3. | Mahogany Insurance | |
67. | Loif Chirwa | 109. | Tiwonge Chirwa | 35. | Evelyn Msosa | 78. | Tiyamike Gadi | 18. | PTL Insurance Loss | Brokers Limited | |
68. | Lonely Banda | 110. | Upile Matenganya | 36. | Fatsani Malonje | 79. | Towera Lallubhai | Assessor | 4. | Kingfisher Insurance | |
69. | Louis Time | 111. | Uzayani Ntaba | 37. | Felix Mchenga | 80. | Trizza Phalani | 19. | RZ Insurance Loss | Brokers Limited | |
70. | Luckness Sambo | 112. | Vanessa Chiundira | 38. | Grayson Vyachi Nyirenda | 81. | Truthruth Kayamba | Assessor | |||
71. | Madalitso Lopez | 113. | Verrah Anthony | 39. | Innocent Nyirenda | 82. | Vanessa Kalombola | STAND-ALONE PENSION | |||
72. | Madalitso Sineta | 114. | Victor Mwaisango | 40. | Johannes Kawalewale | 83. | Violet Kantepa | PENSION SERVICES | FUNDS | ||
73. | Manjaaluso Phiri | 41. | Lauryn Chiumia | 84. | Wanangwa Tchuwa | COMPANIES | 1. | Christian Health | |||
74. | Martha Mkandawire | Vanguard Life | 42. | Letricia Chima | 85. | Alex Nehuwa | 1. | Old Mutual Pension | Association of Malawi | ||
75. | Maria Chapo | Assurance agents | 43. | Limbikani Kaoloka | 86. | Yobe Jere | Services Company | Pension Fund | |||
76. | Martin Moyowina | 1. | Alex Nehuwa | 44. | Linda Manda | Limited | 2. | Limbe Leaf Tobacco | |||
Lambulira | 2. | Alexander Phiri | 45. | Linda Mvula | INSURANCE LOSS | 2. | NICO Pension Services | Company Limited Group | |||
77. | Martin Nkhoma | 3. | Alice Msowoya | 46. | Mphstso Msowoya | ASSESSORS AND | Company | Pension Fund | |||
78. | Mavuto Mbale | 4. | Andrew Chakwana | 47. | Maggie Chimombo | ADJUSTERS | 3. | NBM Pensions | 3. | Standard Bank Pension | |
79. | Mercy Simkhonde | 5. | Beauty Nyirenda | 48. | Maggie Kaunda | 1. | Advanced Line Loss | Administration Limited | Fund | ||
80. | Mike Nyirenda | 6. | Bessi Banda | 49. | Malani Banda | Adjustors | 4. | Axis Pensions Limited | 4. | Aviation Pension Fund | |
81. | Mirriam Kambova | 7. | Bonface Moyo | 50. | Martha Chirwa | 2. | A-N Consulting Insurance | 5. | Continental Pension | 5. | Puma Energy Pension |
82. | Molles Gondwe | 8. | Bright Msosa | 51. | Maxwell Kuntaja | Loss Assessor | Services Company | Fund | |||
83. | Mphatso Mabutao | 9. | Brighton Kondowe | 52. | Memory Baluwa | 3. | Associated Insurance | Limited | 6. | SUCOMA Group Pension | |
84. | Nadi Mughogho | 10. | Carol Mdala | 53. | Memory Moyo | Loss Assessor | Fund | ||||
85. | Odala Mhura | 11. | Carol Sakwiya | 54. | Mercy C. Phiri | 4. | Ctec LA Loss Adjustors | CORPORATE TRUSTEES | 7. | Illovo Sugar (Malawi) | |
86. | Patricia Khauya | 12. | Charles Kavumbula | 55. | Mercy Kantchowa | 5. | Dynamic Loss Adjusters | FOR PENSION FUND | Limited Pension Fun | ||
87. | Patrick Lingwalanya Yobe | 13. | Charley Banda | 56. | Milliam Phiri | 6. | Fidelity Loss Assessors | 1. | Axis Pensions Limited | 8. | Magetsi Pension Fund |
88. | Peter Majawa | 14. | Chifundo Kudzala | 57. | Mirriam Chilamwa | 7. | First Insurance Loss | 2. | Associated Pension Trust | 9. | Telekom Networks |
89. | Precious Chikafa | 15. | Chikumbutso Msuku | 58. | Moses Chirwa | Assessors | Limited | Malawi Limited Pension | |||
90. | Prudence Chirwa | 16. | Chimwemwe Malonje | 59. | Mphatso Msowoya | 8. | GM Insurance Loss | 3. | NBM Pensions | Fund | |
91. | Richard Banda | 17. | Chimwemwe Malunga | 60. | Msinjilireni Ingolo | Assessors | Administration Limited | 10. | Toyota Malawi Limited | ||
92. | Rholita Iphani | 18. | Chimwemwe Singano | 61. | Mtisunge Kalimbuka | 9. | Harolds Group | 4. | Old Mutual Pensions | Pension Fund | |
93. | Ronney Maulidi | 19. | Clement Kabwila | 62. | Nashon Banda | 10. | JBK Multiplan Loss | Service Company | 11. | National Bank of Malawi | |
94. | Rosario Mwandira | 20. | Emily Duwa | 63. | Nelson Singano | Assessors | Limited | Pension Fund | |||
95. | Ruth Reuben | 21. | Alinane Chikafa | 64. | Osman Meja | 11. | Joy Insurance Loss | 5. | NICO Pension Services | 12. | First Capital Bank Limited |
7 8 | 7 9 |
Pension Fund | UMBRELLA FUNDS | 2. | NICO Asset Managers | 4. | Lovemore Kambani | 3. | Zizwani Khonje | FDH Holdings Limited | |||
13. | Malawi Posts | 1. | Old Mutual Malawi | Limited | 5. | James Mbingwa | 1. | Thomson Mpinganjira | |||
Corporation Pension | Umbrella Fund | 3. | Continental Asset | 6. | Bright Chiwaula | Alliance Capital | 2. | George Chitera | |||
Fund | Management Limited | 7. | Theodore Kalumo | Limited | |||||||
14. | Public Service Pension | RESTRICTED PENSION | 4. | FDH Financial Holdings | 1. | Lilian Macheso | DEPOSIT TAKING | ||||
Trust Fund | FUNDS UNDER UMBRELLA | Limited | NICO Asset Managers | 2. | Christian Majavina | MICROFINANCE | |||||
15. | Madzi Pension Fund | FUNDS | 5. | Old Mutual Investment | Limited | 3. | Gift Manda | INSTITUTIONS | |||
16. | CEAR Pension Fund | 1. | Partners in Hope Pension | Group Limited | 1. | Emmanuel Chokani | 4. | Charity Mhango | 1. | Foundation for | |
17. | Malawi Bureau of | Fund | 6. | Standard Bank Limited | 2. | Daniel Dunga | 5. | Elizabeth Likhunya | International Community | ||
Standards Pension Fund | 2. | Malawi | (Malawi) | 3. | Memory Chipembere | 6. | Bond Mtembezeka | Assistance (FINCA) | |||
18. | Auction Holdings Limited | Telecommunications | 7. | Alliance Capital Limited | 4. | James Tsonga | Limited | ||||
Pension Fund | Limited Pension Fund | 8. | Carrick Wealth (Malawi) | 5. | Masautso Elias | Old Mutual Unit Trust | 2. | Vision Fund Malawi | |||
19. | FDH Group Pension Fund | 3. | Alliance One | Limited | 6. | Clara Maliro | (Malawi) Limited | 3. | Target Financial Services | ||
Tobacco(Malawi) Limited | 9. | Rencap Securities (Pty) | 7. | Chikondi Gomani | 1. | James Mhura | Limited | ||||
SELF-ADMINISTERED | Pension Fund | Limited | 8. | Zindaba Mbekeani | 2. | Mercy Chimbaka | |||||
PENSION FUNDS | 4. | Malawi Corridor Group | 9. | Tumusime Msimuko | 3. | David Jere | NON-DEPOSIT TAKING | ||||
1. | Press Corporation | Pension Fund | PORTFOLIO MANAGERS | 10. | Tafika Nyirenda | 4. | Linda Ndasauka | MICROFINANCE | |||
Limited Group Pension | 5. | Tobacco Control | 1. | Old Mutual Investments | 11. | Martin Ephraim | 5. | Dollah Kalukho | INSTITUTIONS | ||
Fund | Commission | Group Limited | 12. | Evance Nasiyaya | 6. | Fatima Koka | 1. | Pride Malawi | |||
2. | Reserve Bank of Malawi | 2. | NICO Asset Managers | 13. | Old Mutual Investment | 7. | Vincent Mkandawire | 2. | Greenwing Capital | ||
Pension Fund | STOCK EXCHANGES | Limited | Group Limited | 8. | Chifundo Kafulatira | Financial Services | |||||
1. | Malawi Stock Exchange | 3. | NBM Capital Markets | 14. | Mark Mikwamba | 3. | Microloan Foundation | ||||
UNRESTRICTED PENSION | Limited | Limited | 15. | Mphatso Kasalika | NBM Capital Markets | 4. | CUMO Microfinance | ||||
FUNDS | 4. | Alliance Capital Limited | 16. | Khumbo Shaba | Limited | 5. | Blue Financial Services | ||||
1. | Old Mutual Malawi | BROKERS | 5. | Continental Asset | 17. | Jack Suleman | 1. | Limbani Namwera | 6. | Easy Loans | |
Unrestricted Pension | 1. | Continental Capital | Management Limited | 18. | Bernard Sande | 2. | Elton Masibawo | 7. | Select Financial Services | ||
Fund | Limited | 19. | Brenda Mwale | 8. | VisionFund Malawi | ||||||
2. | NICO Unrestricted | 2. | Alliance Stockbrokers | TRANSFER SECRETARIES | 20. | Misozi Gondwe | Cedar Capital Limited | 9. | Malawi Enterprise | ||
Pension Fund | Limited | 1. | Standard Bank Limited. | 21. | Fanny Tizora | 1. | Armstrong Kamphoni | Development Fund | |||
3. | NBM Unrestricted | 3. | Stockbrokers Malawi | 2. | NICO Asset Managers | 22. | Robert Kamwela | 2. | Micah Chimombo | (MEDF) | |
Pension Fund | Limited | Limited. | 23. | Linda Kumsinda | 3. | Regina Kachingwe | 10. | Expresscredit Limited | |||
4. | The Associated Pension | 4. | Cedar Capital Limited | 3. | National Bank of Malawi | 24. | Sharon Matanga | 4. | Kondwani Nyirongo | 11. | COMSIV Limited |
Trust (APT) Unrestricted | Limited. | 25. | Garri Mathanga | ||||||||
Pension Fund | COLLECTIVE INVESTMENT | 4. | First Capital Bank | 26. | Cuthbert Mnyenyembe | Continental Capital | MICROCREDIT AGENCIES | ||||
5. | Mwafuli Unrestricted | SCHEMES | Limited. | Limited | 1. | AIC Financials Limited | |||||
Pension Fund | 1. | Old Mutual Unit Trust | Alliance | 1. | Patrick Nadzanja | 2. | BL Financial Services | ||||
6. | Continental Unrestricted | Mw Limited | SECURITIES | Stockbrokers Limited | 2. | Kenneth M'madi | Limited | ||||
Pension Fund | 2. | National Investment | REPRESENTATIVES | 1. | Thokozani Saulosi | 3. | Binisons Credit Agency | ||||
7. | Old Mutual Protektor | Trust Limited | Continental Asset | 2. | Tafadzwa Maphosa | Stockbrokers Malawi | 4. | Business Finance | |||
Unrestricted Pension | Management Limited | Limited | Solutions | ||||||||
Fund | INVESTMENT ADVISORS | 1. | Gillian Kachikondo | Standard Bank Limited | 1. | Noel Kadzakumanja | 5. | Chislet Finance Limited | |||
8. | Vanguard Unrestricted | 1. | NBM Capital Markets | 2. | Grace Zimba | 1. | Enock Kondowe | 2. | Kondwani Makwakwa | 6. | Centre for Advancement |
Pension Fund | Limited | 3. | Precious Kumbatira | 2. | Mutisunge Banda | 3. | David Magombo | of Sustainable |
8 0 | 8 1 |
The Registrar of Financial Institutions ANNUAL REPORT 2019
Development (CASDE) | Limited | 14. | Limbe Leaf SACCO | ||
7. | Circle Microfinance | 30. | Pamodzi Finserve | Limited | |
Limited | Limited | 15. | Mchinji Teachers SACCO | ||
8. | Community Finance | 31. | Rising Finance Limited | Mudi SACCO Limited | |
Limited | 32. | SAILE Financial Services | 16. | M-Unity SACCO Limited | |
9. | Citizen Microfinance | 33. | Savanna Financial | 17. | Mufuna SACCO Limited |
10. | DF Agency | Services Limited | 18. | Msilikali SACCO Limited | |
11. | Ecological Research and | 34. | Sono (Now) | 19. | Mzinda SACCO Limited |
Outreach Initiative Ltd | Microfinance Limited | 20. | Mzuzu University | ||
(ECORET) | 35. | Swift Finance Limited | SACCO Limited | ||
12. | EPIK Finance Limited | 36. | Sycamore Credit Limited | 21. | Nsanje Community |
13. | Excel Microcredit | 37. | Tamarh Consult Limited | SACCO Limited | |
Agency | 38. | The Binisons Credit | 22. | Plan Malawi SACCO | |
14. | Express Microloan | Agency | Limited | ||
Limited | 39. | TEECs | 23. | Reserve Bank of Malawi | |
15. | Faith Microfinance | 40. | Ubale Loans Limited | SACCO Limited | |
Limited | 41. | Ufulu Finance Limited | 24. | Rumphi Teachers | |
16. | First Microfinance | 42. | Umunthu Microfinance | SACCO Limited | |
Centre | 43. | Wealthnet Finance | 25. | Police SACCO Limited | |
17. | FEDOMA Microfinance | Limited | 26. | Polymed SACCO Limited | |
Project | 27. | PTC Group SACCO | |||
18. | Financerite Limited | FINANCIAL | Limited | ||
19. | FISD Finance | COOPERATIVES | 28. | Sucoma SACCO Limited | |
for Agriculture | 1. | Admarc Employees | 29. | Sunbird SACCO Limited | |
Development (FIFAD) | SACCO Limited | 30. | Tadala SACCO Limited | ||
20. | Fountain Microfinance | 2. | Auction Holdings | 31. | Timbiri SACCO Limited |
21. | GetBucks Malawi | Limited | 32. | Thyolo Teachers SACCO | |
22. | Green Gold Finance | 3. | BNC SACCO | Limited | |
Limited | 4. | Chilungamo SACCO | 33. | Umodzi SACCO Limited | |
23. | Greenroot Finance | Limited | 34. | UNC SACCO Limited | |
Limited | 5. | Chitukuko SACCO | 35. | United Civil Servants | |
24. | Mlatho Financial | Limited | SACCO Limited | ||
Services Limited | 6. | Dedza Teachers SACCO | 36. | United Nations SACCO | |
25. | Moyowathu Financial | Limited | Limited | ||
Services | 7. | DWASCO SACCO | |||
26. | National Association | Limited | |||
of Business Women | 8. | Focus SACCO Limited | |||
(NABW) | 9. | Fodya SACCO Limited | |||
27. | Nile Flow Limited | 10. | Future SACCO Limited | ||
28. | Northern Alliance | 11. | Kandiya SACCO Limited | ||
Financing Corporation | 12. | Kasupe SACCO | |||
Limited | 13. | Kawiluwilu SACCO | |||
29. | Palm Microfinance | Limited |
8 2
Attachments
- Original document
- Permalink
Disclaimer
Reserve Bank of Malawi published this content on 12 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2020 05:49:06 UTC