Kingdom relisting on course

Kingdom Financial Holdings (KFHL) will be relisting on the Zimbabwe Stock Exchange if shareholders approve the plan at an extraordinary general meeting (EGM) at a date yet to be announced.

The decision to relist the financial service company follows a demerging from Meikles Africa last year.

KFHL unbundled from the troublesome merger with Meikles Africa Limited, Tanganda Tea Company and Cotton Printers, after sharp differences emerged among the diversified company’s top brass. The de-merger was approved in October 2010.

“The listing will be finalised at the next EGM,” KFHL group chief executive Lynn Mukonoweshuro said at the company’s first annual general meeting after the demerger on Monday.

KFHL could not give a trading update as the company was in a closed period.
However, indications are that shareholders are for the idea to relist the KFHL.

Mukonoweshuro recently said if and when it is listed, it will operate and conduct itself like any other listed company, adding the core thrust of business remains the same, which is to offer compelling diversified financial services solutions to clients

Mukonoweshuro said KFHL was taking steps to implement new concepts that will change the current perspective of customers in the banking sector in the country.

Officials from the bank recently took part in a meeting in New York held under the theme “95% Market Share” attended by representatives from three countries – United States, South Africa and Zimbabwe.

“We have already started implementing some of the new concepts that we borrowed from this meeting, mainly the 95% share marketing, and the things that have kept them going despite many challenges in the business world,” said Mukonoweshuro.

“We are going to implement them around the issues of productivity, on how best we can improve on the customers we have,” said Mukonoweshuro.
Shareholders approved all resolutions which were on the agenda which included, approval of the company’s financial statements, directors’ fees which were $120 907, reappointment of external auditors and their fees.

Shareholders also re-elected directors Nigel Chanakira, Franky Kufa, Calisto Jokonya and Mandivamba Rukuni who had retired by rotation but offered themselves for re-election as they were legible to do so.

KFHL bounced back to profit during the 12 months to December 31 2010 after reporting a $1,9 million loss during the year ending December 31 2009.

KFHL results for the period under review show that pre-tax profits had increased three-fold to $7,1 million, from $1,9 million in 2009.

Net interest income increased to $8,5 million, from $6 million during the prior comparative period, said Sibusisiwe Bango.

The group, however, reported a positive net interest margin of 53% compared to 88%t reported during the prior comparative period.

The decrease was driven by expensive wholesale funds available on the market, which local financial institutions are using to fund their loan books.

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