Metbank to raise $100m

HARARE - Metbank Limited (Metbank) Group chairperson Wilson Manase last week said it was seeking to raise $100 million in an effort to recapitalise the financial institution and meet the minimum capital requirements set the by Reserve Bank of Zimbabwe. 

Manase said plans are currently underway to ensure that the funds are realised before the end of this year.

“Our top priority right now, as the liquidity crunch continues to persist, is to build on the bank’s capital base so that the bank is in a good position to meet customer demands as and when they fall due,” he said.

Manase noted that while in the past Metbank and its shareholders were involved in fundraising activities, the bank recently resolved to engage the services of financial advisors with a mandate to raise $50 million in equity and another $50 million in debt finance.

“In order to comply with the $100 million, the new minimum capital for commercial banks in 2020, we have made a decision to pursue a concerted recapitalisation programme blending equity financing with internally-generated resources.

“To this point, a recapitalisation plan was submitted to the central bank in June 2014 in line with deadlines set by the regulator,” he said.

Meanwhile, Metbank has recorded a loss of $3,5 million in the six months to June 2014 up from a profit of $1,9 million in the corresponding period.

The bank’s assets declined by six percent from $169 million as at December 31, 2013 to $159 million as at June 30, 2014.

Manase said on account of operating losses, shareholders equity amounted to $42,1 million, down from eight percent from $45,7 million by end of last year.

In the period under review, Metbank made significant strides in managing overheads, including the containment of employment costs.

“Staff complement has been reduced through voluntary retrenchments and non-renewal of contracts for staff employed on a contract basis. This has seen staff numbers declining from 419 in June 2013 to 238 as at June 30, 2014, reducing staff costs by about 48 percent in the process,” he said.

Manase also noted that the bank was in the process of downsizing and rationalising its branch network.

“During the period under review two branches and four agencies were closed,” he said adding that one more branch and one agency would be closed before the end of the third quarter.

“So far this has been done with minimum inconvenience to clients as agencies had to be merged with nearby branches,” said Manase.

Comments (3)

This bank must do something about its management.Onr cannot be CEO becoz of realtioship to founder look at the mess he created at Airzim proper bankers needed for this bank not boys

Gilbert - 2 September 2014

FOR SALE HP TONER CARTRIDGES 05A, 10A, 11A, 12A, 13A, 15A, 24A, 35A, 36A, 42A, 49A, 51A, 53A, 55A, 61A, 64A, 70A, 78A, 80A, 85A, 90A, AND MANYMORE 0772 678 311

GALLERYCARTIDGES - 2 September 2014

While we appreciate your efforts Mr Manase, please improve on meeting the depositors demands on a daily basis. it has been a night mare to get our funds out of your bank

martin chipimo - 4 September 2014

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