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Royal Bank scouts for investors

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Royal Bank is the process of engaging potential investors and hopes to have finalised the deal before the end of the year.

In a statement accompanying the banks’ unaudited results of the half-year to June, Royal Bank chairman Peter Chikumba said negotiations with potential investors had reached an advanced stage.

Royal Bank is one of several banks that are yet to meet the Reserve Bank of Zimbabwe (RBZ) minimum capital requirements of $12,5 million.

“In addition the bank is implementing other strategic capital-raising initiatives which will boost the entity’s capital position and these will be communicated to the market in due course,” said Chikumba.

“The board is confident that these will result in the bank meeting minimum capitalisation of $12,5 million ahead of the September 30 2012 deadline that was given by the Reserve Bank of Zimbabwe at the time of re-licensing in September 2010.”

Since opening its branch in February this year Royal bank has since reopened all its twelve branches countrywide.

Royal Bank was closed six years ago after the banking sector crisis of 2004, but was reissued with a licence last year together with Trust and Barbican.

RBZ last year reinstated the licences of Trust Bank, Barbican Bank and Royal Bank. The three commercial banks were shut down in 2004 and merged to form the Zimbabwe Allied Banking Corporation.

Royal Bank recorded a loss of $1,5 million with $0,9 million related to reopening costs.

As at June 30 the bank’s tier 1 capital consisting of share capital, share premium and accumulated losses stood at $5,6 million.

Chikumba said the bank would in the near future launch branchless banking products, mortgage finance and microfinance, among others.

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