It was another excellent year for First Merchant Bank, which again outstripped its competitors with regard to market share of deposits, growth in total assets, increase in profitability and the rollout of new branch infrastructure.
In 2004, profits grew 30% to 457.814m Kwacha ($3.692m). In addition, assets were up 47%, ROE was a very respectable 68.2%, the cost-to-income ratio dropped slightly to 47% and the NPL ratio improved to 3.6%.
“When measured in terms of return and cost efficiency, we have consistently outperformed our competitors in the Malawi banking sector for many years. This performance has been achieved against the background of an extremely volatile macroeconomic environment,” says managing director Kashinath Chaturvedi.
Mr Chaturvedi says the bank continues to invest in technology, as a means to improving customer service while keeping costs down, and the bank’s technological infrastructure is at least as good as that of its peers. But, as he points out, First Merchant’s successful strategy is built around promoting the image of the bank and a commitment to corporate social responsibility. This included in 2004 the largest ever single private sector philanthropic act in Malawi’s history, which was especially noted by the judges.
