AfrAsia back in the black

HARARE - Afrasia Zimbabwe Holdings Limited (AfrAsia) —  formerly Kingdom Financial Holdings Limited (KFHL) — recorded a $174 862 profit in the half year to December 2013, recovering from a $16 million loss incurred in the 18 months to June 2013.

Charles Wawn, the group’s acting chairperson, said the performance is on the back of AfrAsia cleaning its non-performing loan book and a successful rights issue.

“Various strategic cost containment measures continued resulting in operating costs decreasing by 16 percent when compared to prior period,” he said, noting that the conclusion of a private placement last Friday will result in the group writing more business in order to achieve better results by the end of the 2014 financial year.

“The bank is expected to operate profitably in the next six months after the injection of the new capital from private placement,” Wawn said.

AfrAsia’s flagship banking arm — through the major shareholder and partner — is expected to offer seamless offshore wealth management products and solutions while offering an investment and funding gateway to and from Asia and the international market for its clients.

Last year, Mauritius-based AfrAsia Holdings Limited (AHL) upped its shareholding in AfrAsia to 54 percent from 35 percent after acquiring a 30 percent stake previously held by KFHL founder, Nigel Chanakira.

AHL, now the major shareholder in AfrAsia, has already injected liquidity support amounting to $10 million to Kingdom Bank Limited and also committed to lead the rights issue to raise $20 million with another $80 million through private placement as the second phase.

In September 2013, Chanakira exited as director of all AfrAsia subsidiaries after selling his 30 percent stake in the group. He has however retained the “Kingdom” trademark under the Botswana-based offshore bank, Kingdom Bank Africa Limited (KBAL).

Following Chanakira’s exit, AfrAsia shareholders passed resolutions that were expected to strengthen the group’s financial position and go a long way in easing liquidity challenges facing the country.

At the company’s extra-ordinary general meeting (EGM) held in December last year shareholders passed among other special resolutions, increase in ordinary share capital, consolidation of ordinary share capital, change of name and rebranding as well as issue of preference shares.

Comments (1)

How is this bank in the "black"? If anything - they are making progress and must be commended for stirring this ship around. Things were not looking good for some time but now there is hope and stability. Well done to the management and staff.

Observer - 10 March 2014

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