2. MALAWI SAVINGS BANK LIMITED PRESENTATION TO TOBACCO INDUSTRY ANNUAL SEMINAR AT SUN N SAND HOLIDAY RESORT Mangochi 9 th Sept 2013 2012

3. Out line Key facts about the bank Locations Products & Services Seasonal Loans and crops funded Risks and mitigations Our continued interventions Concluding remarks.

4. Historical Background for the bank One of oldest banks in Malawi Traces its origin back to Post Office Savings Bank, formed in 1910 Incorporated as a limited liability company in 1994 Granted a banking license by Reserve Bank of Malawi in 1995 Commenced banking operations in 1995 Business conducted under supervisory authority of Reserve Bank of Malawi Largest bank by distribution network

5. Ownership The Malawi Government wholly owns the bank (100% shareholding)

6. Shareholders equity, Assets and Liability (2012) Ser. No ItemValues 1.Shareholders Equity K 3.5 billion 2.Total AssetsK39.6 billion 3.Deposit baseK30.9 billion

7. Branch Network Map of Malawi Branches & Agencies Branches : Bt, Limbe, LL,CC, Mzuzu, Ntcheu, Nkhota Kota, Mchinji, Zomba, Nsanje, Mwanza, Chikhwawa 13 Service Centres: Southern Region20 Central Region10 Northern Region 7 Revenue collection points 16 Total 66 Forex Bureau 11 All branches and service centres are on line real time. Compliment with three mobile banking vans.

8. Products & Services

9. Seasonal Loans MSB is actively associated with farmers The bank is financing the following crops: Tobacco Soya beans Maize seed Groundnuts Rice

10. Trend in seasonal loans 2007- 2013

11. Risks SerRisksMitigations 1.Weather- too little or too much rainfall can have a big impact on the crop. Weather Indexed Insurance/crop insurance 2.Pests and diseasesPlant certified seeds and practicing crop rotation. 3.Multiple registration of farmers (2 or 3 reg. numbers rendering stop order process not effective) Fast track biometric registration system. Prudent selection of growers at individual /club/ location levels 4.Side selling/ marketing of tobacco and sale on other growers reg. certificates. Enhance delivery of tobacco to Auction Floors. Close monitoring at field level. Strength relationship with farmers. 5.Loan defaultA combination of the above

12. Way forward The IPS model builds confidence to the bank and motivates us for up scaling our exposures for industry sustainability. Adopt know your supplier (KYS) Take pro-active role to collect tobacco from farmers to Auction Floors. AHL to assist banks to process stop orders upon signing by the farmer. Register stop order with Registrar where farmer defaulted with another merchant/bank and now uses a different registration number.

13. Our continued interventions Apart from farmer financing, The Bank has now a dedicated Agribusiness Division with Relationship Managers. Our network of branches and service centers brings convenience to our farmers business needs i.e. timely banking throughout the country within the area of industry stakeholder operations. Personalized and customized services to a diverse range of customers. Competitive rates, terms and conditions.

14. Concluding remarks We are spread throughout the country as part of our effort to complement Governments objective of financial inclusion. MSB as a Government Bank is complementing the governments program of promoting agriculture for economic prosperity. We have been funding farmers growing cash crops such as tobacco, seed maize, groundnuts etc for many years but also, alongside tobacco we finance maize and tree planting for food security and reforestation.

15. THANK YOU