Reserve Bank of Malawi : Financial Institutions Supervision Annual Report 2019

May 12, 2020 at 01:50 am

The Registrar

of Financial Institutions

ANNUAL REPORT 2019

The Registrar of Financial Institutions	ANNUAL REPORT 2019	The Registrar of Financial Institutions	ANNUAL REPORT 2019

The Registrar of Financial Institutions ANNUAL REPORT 2019The Registrar of Financial Institutions ANNUAL REPORT 2019

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

The Registrar of Financial Institutions ANNUAL REPORT 2018The Registrar of Financial Institutions ANNUAL REPORT 2019

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

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

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.

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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.

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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

(%)

Percentage

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.

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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

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

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The Registrar of Financial Institutions ANNUAL REPORT 2019

Figure 2.3: Liquidity Ratio for Banks

100

(%)

Percentage

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.

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The Registrar of Financial Institutions ANNUAL REPORT 2019

3. CAPITAL MARKETS

3.1 Sector Overview

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.

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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

600.00

400.00

200.00

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.

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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

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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

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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

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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

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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

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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).

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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%

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%

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).

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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.

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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

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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.

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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

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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.

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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.

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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.

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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.

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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

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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

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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

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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

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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

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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

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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

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The Registrar of Financial Institutions ANNUAL REPORT 2019The Registrar of Financial Institutions ANNUAL REPORT 2019

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

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The Registrar of Financial Institutions ANNUAL REPORT 2019The Registrar of Financial Institutions ANNUAL REPORT 2019

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

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The Registrar of Financial Institutions ANNUAL REPORT 2019The Registrar of Financial Institutions ANNUAL REPORT 2019

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

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The Registrar of Financial Institutions ANNUAL REPORT 2019The Registrar of Financial Institutions ANNUAL REPORT 2019

	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

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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

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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

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