Dr Mpinganjira making his presentation at the conference
LILONGWE-(MaraviPost)-One of the country’s renown business gurus Dr. Thomson Mpinganjira says successful business empire is teller-made through risk taking.
Dr Mpinganjira who is the Chief Executive for FDH Financial Holdings says that there is no one formula for building a business empire
He was speaking on Wednesday at the Corporate Gurus conference in the capital Lilongwe.
Mpinganjira whose company bought Malawi Savings Bank (MSB) from government told the gathering that there is a number of key principles one needs to follow when venturing into serious business empire including putting God first in everything,, having dream, proper planning, be an opportunist. winning mentality. be ethical in all your dealings and plan to leave behind a Legacy.
He said is proud of taking risk for buying MSB the times was in the verge of collapsing.
Dr. Mpinganjira cited numerous hurdles misconceptions of the value of MSB Bank including lack of expertise from Analysts writing and commenting about the valuation – focusing on its balance sheet and deposit base (yet deposits belong to customers and are not the shareholders equity).
“The Resident IMF Country Director in 2015 was surprised that we paid Mwk5.4 Billion. His view was that the MSB Bank was worth Mwk1.00. And he was damn right!!!
“Contrary to MK1 billion profit declared by Management, Audited Accounts showed a MK2 Billion loss.
“Over 70% of non-performing loans and MK48 billion written down from MSB Bank Loan Books from 2015 to 31 December 2018,”says Mpinganjira.
FDH Financial Holdings has over 800 employees over 800 people.
Its Bank, FDH Bank, has the widest service centre network – 50 service centres.
The institution has a MK32.3 billion (US$44.47m) turnover and generates MK7.8 billion( 10.78m) profit after tax.