Browsing: Banking

ZB Financial Holdings mulls shutting down home loan unit

ZB Financial Holdings Limited, one of Zimbabwe’s oldest financial institutions, made a shock announcement to the market that it was mulling a decision to shut down its mortgage lending unit.

These revelations about the pending decision by the ZSE listed diversified financial institution were capture in an article carried by the Sunday Mail titled, “Crunch time for ZB… Directors mull liquidation and surrendering license.”

It is not difficult to see how a cursory glance at this headline would cause disquiet in the market. The headline gave the impression that the group was troubled and that it was going to surrender its banking license and shut its doors…

  • ZB Financial Holdings is considering the decision to surrender its building society license but veteran banker Nicholas Vingirai is having none of it.
  • The bank will probably continue mortgage lending from its commercial banking operation without doing so through a standalone mortgage

Banks in Africa generally and in South Africa especially weathered the perfect storm caused by the COVID-19 pandemic.

This is testament to their resilience and confirms the findings of a study that was commissioned in 2015 by the African Development Bank titled, “The Banking System in Africa: Main Facts and Challenges”. The report found that while Africa’s banking environment is relatively shallow and less penetrated, it is as competitive as that in other developing and high-income regions.

  • Banks in Africa showed their resilience when they weathered the existential threat and headwinds brought on by COVID.
  • Banking in Africa is significantly ahead if the rest f the world according to the AFDB in terms of the penetration and adoption of mobile banking.
  • Banks in South Africa especially have been making money as the economy shed off its last vestiges of COVID controls.

The continent has made improvements in banking technology and…

The African Continental Free Trade Area (AfCFTA) is the continent’s attempt at creating a single market for goods and services.

Its aim is to, among other things, encourage the countries that make up the continent to trade with one another but also to advance the collective economy of the African continent to rival those of the leading economies of the world.

  • Banks, in their intermediary function, have a critical role to play in the implementation of AfCFTA
  • Banks are largely responsible for the payment mechanism in every economy, and as such, they will be central in facilitating international and intra-African trade through seamless payment solutions
  • AfCFTA is the continent’s most ambitious effort to create a common market throughout Africa

The AfCFTA will transform Africa if only it can be implemented. Most of the countries on the continent have signed up to the idea of a common market; however, the initiative…

  • Banking industry in South Africa staged a strong come back in 2021 in report by PWC.
  • Banks enjoyed supportive credit conditions in the economy of South Africa.
  • Banking industry is widely seen as a proxy of the general economy in South Africa
  • South African economy has returned to pre-pandemic levels as evidenced by the financial performance of banks according to PWC

The banking industry in South Africa is in for good times according to a report by PWC. The banking industry sector analysis and report by the global management consulting firm published in March 2022 reports that the major South African banks delivered strong financial performance against what PWC described as “supportive conditions”.

The banking industry had combined headline earnings of ZAR 86.8 billion which represented a 99% increase from 2020 financial year levels. Banks had a combined return on equity (ROE) of 15.9% compared to 8.3% achieved in 2020, …

  • Central bank announces the upliftment of temporary suspension of lending by local banks
  • ZSE-listed milk producer Dairiboard Holdings Limited suspends dividend payment of $187 million for the year ended 31 December 2021
  • Hippo Valley Estates Limited and Triangle Limited suspend advance payments to sugarcane farmers

The Reserve Bank of Zimbabwe (RBZ) has announced the upliftment of temporary suspension of lending by local banks except for firms under investigation for abusing loan facilities. The lifting of the suspension is with immediate effect.

“The lifting of the suspension does not apply to those entities that are under investigation by the Financial Intelligence Unit (FIU) for abusing loan facilities to the detriment of the economy” read the press statement signed by RBZ Governor Dr. John Mangudya.

Last week, President Mnangagwa, announced a raft of measures aimed at restoring confidence, preserving value, and restoring macro-economic stability.

The president announced in a May 7 …

  • Almost all sectors of Zimbabwe's economy need immediate investment
  • Zimbabwe's economy is largely driven by the mining, agriculture, and tourism sectors
  • Zimbabwe's main exports are minerals, agricultural produce, and soft commodities

Almost all sectors of Zimbabwe's economy need immediate investment.

Agro-processing and agro-forestry, manufacturing, tourism, and services like construction, infrastructure, transport, mining, and ICT present a host of investment opportunities. They are also supported through investor-friendly policies and incentives that aim to encourage investment, and also the Government's objective of making Zimbabwe a net exporter by 2030.

The World Bank said the Zimbabwean economy rebounded in 2021, driven by a recovery of agriculture and industry and relative stabilization of prices and exchange rates. An exceptionally good agriculture season, coupled with slowing inflation and higher remittances boosted domestic demand. Relaxed pandemic restrictions, good vaccination levels, and favourable terms of trade supported stronger industrial production and exports, with exports of…

Successful turnaround strategies are not new to Zimbabwe's largest universal banking concern.

CBZ has gone the distance from being characterized as a bank for crooks to the largest banking concern in the country. The majority of banks in the southern African country adopt the universal banking model instead of the niche or boutique bank model which was once ubiquitous globally.

The universal banking model's roots can be traced to the promulgation of the Glass Steagall Act on the 1930s which combined the activities of commercial banks and investments banks. Banking houses that adopt this universal banking model aim to be a one-stop financial services shop offering everything from consumer and corporate credit to insurance and investment products.

The trend in Zimbabwe has grown in popularity as a method of meeting regulatory compliance and attaining critical mass. Other banks in Zimbabwe following the universal banking model in Zimbabwe include FBC Holdings…

Tanzania’s banking industry is experiencing interesting changes as top tier banks bring different investments, innovations, and benefits to the economy. The National Microfinance Bank (NMB) is a part of that.

The bank which has historical roots in Tanzania has surpassed many limits, including breaking a record of the highest profit ever marked in Tanzania’s banking history. NMB raked in more than US$88 million in profit after tax (profit before tax of more than US$127 million), in the year ended December 31 2020.

Ruth Zaipuna, the bank’s CEO, attributed the bank’s encouraging performance to a strict mirror of the bank’s strategic plans, which are pivoted towards bringing more income and improving operational efficiency by leveraging on tech to drive customer experience and cost efficiency (NMB).

“This year (2020), despite the global uncertainties in the wake of a global pandemic, we delivered a record-setting performance with strong stakeholder support, operational excellence, and …

Central Bank of Kenya (CBK) data shows fixed deposit accounts gained Sh64.8 billion in the quarter ending June, 2021.

While the decision to keep one’s finances away for a rainy day is laudable, the big question remains, what returns can an ardent saver expect from choosing a fixed deposit over an ordinary savings account?

“The best way to safeguard one’s investment from unprecedented and volatile market movement is by investing in a fixed deposit account. With the unprecedented Covid-19 Pandemic that swept the globe over the past eighteen months, fixed deposit accounts have grown in popularity in Kenya,” said Maisha Microfinance chief executive Ireneus Gichana.

Understanding how a fixed deposit account works

A fixed deposit account is like a savings account; however, the key differentiator is that fixed deposit accounts accrue higher interest based on the duration agreed upon between the individual and the bank.

This means that an individual …

Over 250 top-level speakers and panelists including a huge range of Africa’s most important investors, dealmakers, and business leaders, have been confirmed ready to attend the Annual AFSIC-Investing in Africa forum that is scheduled for October 11th and 12th in London, These Key Figures in the Corporate world will unpack the increasing global investment momentum into Africa’s growing public and private sectors as well as highlighting new growth opportunities across the continent.

The agenda of AFSIC 2021, remains investment-focused, with several of the most experienced and successful asset management firms investing in Africa sharing insights into where the smart money is investing, and business leaders running some of Africa’s most exciting growth companies showcasing new investment opportunities, with focused streams in Banking, Building, Healthcare, Agriculture, Fintech, Education and Sustainable Growth.

With ABSA Corporate Investment Bank heading up an impressive group of supporting sponsors, the conference will also feature …