HARARE,– FBC Holdings is set to rename its newly acquired Standard Chartered business to Crown Bank, aiming to establish it as a premium banking service in Zimbabwe’s competitive market, according to NewZwire.
The acquisition, valued at US$26.7 million, is intended to enhance FBC’s market presence and service offerings.
Herbert Nkala, FBC Holdings’ chairman, informed shareholders that the new entity, FBC Crown Bank, would operate semi-autonomously, maintaining its banking license.
“FBC Crown Bank will operate semi-autonomously as a subsidiary of FBC Holdings. For now, it will retain its banking license. FBC Crown Bank will focus on wholesale banking for large blue-chip corporate clients and high net worth individual clients,” Nkala stated at the company’s Annual General Meeting (AGM). The existing FBC Bank will continue to cater to the consumer and SME market.
During the acquisition process, FBC deposited US$34 million into escrow last year to demonstrate its financial capability to finalize the deal. Of this amount, US$7.3 million was returned to FBC, setting the final purchase price at US$26.7 million. FBC CEO Trynos Kufazvinei highlighted the positive impact of the acquisition, stating, “We have actually increased our customer base. Our market share has increased by 2 to 3% as a result of this acquisition. So, it’s a positive move for shareholders.”
As of December 2022, FBC Bank was Zimbabwe’s fourth largest bank by loan book, holding 11% of loans. In comparison, Standard Chartered accounted for just 1.1% of loans in 2022, down from 3% in 2021.
In addition to the banking business, FBC acquired StanChart’s investment arm, which holds a 20% stake in property developer Mashonaland Holdings. FBC plans to leverage this stake to strengthen its position in the real estate market. “As you know, we acquired Africa Enterprise Network Trust (AENT) which owned 20% of Mashonaland Holdings. This is now within the group. It has buttressed our investment portfolio. Obviously, we will be looking at options to work together and also to unlock value on these investments,” Kufazvinei added.
FBC’s building society unit is actively engaged in property developments in Zvishavane, Masvingo, and Hwange. Kufazvinei remarked, “Many banks have started building head offices. For us, we said instead of building head offices, let’s acquire a business. But we have a stand of two hectares, which we want to develop.” He suggested that this development might be realized through a real estate investment trust (REIT).
The strategic acquisition and rebranding efforts are expected to solidify FBC Holdings’ position in Zimbabwe’s financial sector, catering to a broader range of clients and expanding its investment portfolio.
