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TN Bank to ride on Econet base

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TN Holdings Limited chief executive officer, Tawanda Nyambirai, has confirmed telecommunications giant Econet Wireless will inject $20 million into TN Bank.

The development is set to position the bank to be among the top four in the country.

Nyambirai told an analysts briefing on Friday that the partnership with Econet would require the bank to pull out of TN Holdings.

The Econet partnership will bring on board a large subscriber base, Nyambirai said.

We are going to see the fruits of this through the transactions, capitalising on new products that Econet will be launching.

He said the Ecocash product was launched, with the bank playing a super agent and banking partner role to Econet.

The product is set to revolutionise mobile money transfer in Zimbabwe, he said.

The company said the bank remained compliant with the minimum capital requirements as prescribed by the regulator.

As at December 31 2011, the banks capital was $15 million against a minimum requirement of $12,5 million.

Efforts will be made to strengthen the capital even further for purposes of enhancing underwriting capacity and increasing public confidence in the bank, Nyambirai said.

During the year ended December 2011, TN Holdings group total assets rose by 123% to $140,43 million from $62,83 million.

Earnings Before Interest and Tax (EBIT) for the year at $5,89 million was slightly higher than EBIT for the half year ended June 30 2011 as the group adopted a strategy to offer discounts that amounted to approximately $6,52 million on cash purchase of furniture.

This assisted the group in managing the impact of market wide liquidity challenges that characterised the last quarter of 2011, Nyambirai said.

Profit after tax for the year rose by 308% to $3,58 million from a loss of $1,72 million for 2010.

TN Bank total income increased by 64% to $13,92 million from the previous year at $8,49 million.

The groups banking arm posted a profit before tax of $1,59 million up from $1,39 million the previous year.

TN Harlequin Luxaires profit after tax increased by 220% to $4 million, reversing a loss of $3,34 million the previous year.

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