ZB Financial Holdings (ZBFH) has secured $20 million to boost the capital base of its flagship unit, ZB Bank Limited, the group said yesterday.
by BUSINESS REPORTER
The bank has a capital position of $9 032 350 against the required minimum capital requirement of $25 million as at December 31.
In a cautionary statement yesterday, ZBFH said it had secured $20 million from one of its major shareholders in the form of an interest-free loan with a 10-year tenure for ZB Bank.
“In addition, there are other measures being pursued by ZB Bank which it is anticipated will further boost the bank’s capital,” the group said.
In a statement accompanying the group financial results for 2014, ZBFH said it was going to merge the commercial banking unit and ZB Building Society. ZB Building Society had a capital position of $14 773 272 against the required minimum equity capital of $20 million.
“The group has adopted a strategic position to merge its banking operations which obviates the need for a further capital injection. This will require the approval of the Reserve Bank of Zimbabwe and that of respective shareholders among others,” it said.
ZBFH said the performance of the group in the four months ended April 30 2015 “reflected an improvement driven by a notable decrease in the group’s operating costs.
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“Indications are that this trend is likely to be maintained for the rest of the year,” it said.
In its financial results for the year ended December 31, 2014, ZBFH widened its loss to $9,8 million from $0,3 million in 2013 attributed to staff disengagement costs, discontinued operations and allowances for loan impairment.
Net interest income decreased by 9% to $19,6 million from $21,6 million in 2013 whilst allowances for loan impairments increased by 344% to $7,7 million.
