- Total income surpassed ZWL2 trillion in Q1
- After-tax profit crossed the 1 trillion mark, reaching ZWL1.1 trillion
- Substantial growth in total assets of ZWL14.6 trillion
Harare- FBC Holdings, the fourth-largest bank by loan book in Zimbabwe, has completed the takeover of Standard Chartered Bank Zimbabwe (Stanchat). FBC plans to transform the acquired business into a powerhouse targeting the niche wholesale banking market.
The wholesale banking market typically includes larger corporate clients, financial institutions, and institutional investors, rather than retail consumers. By focusing on this specialized wholesale segment, FBC aims to leverage Stanchat's established presence and expertise to capture a bigger share of this lucrative market.
Wholesale banking often involves higher-value transactions, complex financial products, and advisory services, which can generate higher revenues and margins for the bank.
With Stanchat's loan book now under FBC's control, the combined entity will have a significantly larger loan portfolio, increasing FBC's overall market share in the banking sector.
In March 2024, FBC stated that "Stanchat would operate as a separate bank and we are in the process of securing necessary approvals for the bank's new name." As part of the transaction, FBC deposited US$34 million into an escrow account to demonstrate its capacity to complete the takeover in 2023.
According to the Reserve Bank of Zimbabwe's latest data for 2022, FBC accounted for 11% of the total loans, while Stanchat's share had declined from 3% in 2021 to 1.1%.
The latest takeover, FBC now holds a 100% ownership stake in Stanchat Zimbabwe and Stanchat's Africa Enterprise Network Trust, which owns a 20.7% stake in Mashonaland Holdings.
Meanwhile, during the Q1 2024 fiscal period, FBC achieved a total income of ZWL2.7 trillion while profit before tax shoot to ZWL1.3 trillion, driven primarily by exchange rate gains.
As a result, the bank's after-tax profit crossed the one trillion mark in a single quarter, reaching ZWL1.1 trillion, while its total assets stood at ZWL14.6 trillion as of March 31, 2024.
With the acquisition of Stanchat now complete, the group is expected to report improved earnings, a better loan book, and enhanced shareholder value. FBC has stated that it will retain Stanchat's employees, thereby incorporating the highly skilled SCBZ workforce and their exposure to international best practices.
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