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08 Mar, 2019 - 00:03 0 Views
Did you know?

eBusiness Weekly

First Capital Bank, formerly Barclays Bank Zimbabwe was first established in Zimbabwe in 1912 and has been in operation since then.

Its ownership, however, changed in 2017 when Barclays Bank PLC sold the majority of its stake in Barclays Bank of Zimbabwe Limited to FMB Capital Holdings PLC (“FMB Capital”).

Pursuant to that transaction, FMB Capital Holdings PLC now holds 43 percent of the shares in Barclays Bank of Zimbabwe Limited whilst Barclays Bank PLC retains 10 percent shareholding.

A further 15 percent is now owned by an employee share trust and the balance is owned by more than 8 400 individual and institutional shareholders through the Zimbabwe Stock Exchange, on which the bank remains listed.

For the bank, this effectively concluded a process that started when Barclays Bank PLC announced on 1 March 2016, its intention to divest from Barclays Africa including Barclays Bank of Zimbabwe Limited.

Now led by managing director Samuel Matsekete, the bank will, for the next two years continue to operate as a cobranded bank as First Capital Bank in association with Barclays.

The process, which will run till October 2020, will be managed carefully to ensure the transition continues to be smooth and that the quality of service to customers remains strong.

This is important to Barclays Bank PLC as it is to FMB Capital and the First Capital Bank Board. At the same time, the Bank has started to tap into the synergies and benefits to be drawn from FMB’s presence across five markets in the region.

The new major shareholder, FMB Capital Holdings Plc, is a Mauritius-based financial services conglomerate, with subsidiaries in several Southern African countries, including Botswana, Malawi, Mozambique, Zambia, and Zimbabwe. The stock of Barclays Bank Zimbabwe, is listed on the Zimbabwe Stock Exchange. The major shareholders in the bank is FMB Capital.

As of June 2018, its total asset base was valued at US$590,4 million. At that time, its shareholders’ equity was valued at US$102,5 million. The bank remains focused on the need to grow its capital base in order to sustain planned growth and build the core capital base towards the 2020 regulatory minimum of $100 million. The bank is also reviewing its balance sheet to ensure it is optimally structured and focused on its core banking activities.

For the half year to June 2018, the bank’s net interest income constituted 47 percent of total income compared to 29 percent for prior year, due to the growth in interest earning assets. Further, growth in the loan book resulted in an improved loan to deposit ratio that closed at 33 percent from 27 percent a year earlier. Deposits grew by 19 percent over the period.

If you want your company featured on this column, please phone Herbert Zharare on 0773456021 (email [email protected] ) Kudzanai Sharara on 0772768370 (email – kudzies1310@gmail.com)

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