MBCA to rebrand to Nedbank

HARARE - South Africa-based financial group Nedbank plans to rename its local unit MBCA Bank to Nedbank Zimbabwe next year, businessdaily has learnt.

Nedbank holds a 74 percent stake in MBCA, one of the six foreign-owned banks operating in Zimbabwe.

Charity Jinya, MBCA’s managing director, neither denied nor confirmed the plan.

“It is currently too early to confirm our plans on rebranding. We will advise you once definitive plans are in place,” she said.

This comes as two years ago, MBCA embarked on a partial rebranding exercise by changing its predominantly blue colour to green, a colour also used by Nedbank.

At the time, the bank’s spokesperson Dedrey Mutimutema said they were partially rebranding in line with Nedbank’s strategies.

“Our plan is to align our activities, make up, and design with the rest of the Nedbank group,” she said.

The country’s other foreign-owned banks are British-owned Barclays, Standard Chartered, Stanbic Bank — a unit of South Africa’s Standard Bank group — pan-African Ecobank and AfrAsia Zimbabwe Holdings Limited.

Recently, MBCA indicated that it hoped for a positive outcome on its indigenisation compliance discussions with Zimbabwean authorities, as the group sought to comply with the country’s empowerment law — compelling foreigners to cede 51 percent shareholding to black locals.

In condensed financial results for the half year ended June 30, 2014, Willard Zireva, MBCA chairman said all processes for the institution’s indigenisation were on course.

“The bank’s indigenisation plan was acknowledged by government and management is currently finalising the operational modalities prior to implementation,” Zireva said.

However, there has been confusion over the implementation of the policy as various government officials have been interpreting the policy differently —resulting in most companies delaying to comply with the Act.

The Bankers Association of Zimbabwe (Baz) recently revealed that foreign banks were yet to comply with Zimbabwe’s indigenisation policy due to authorities’ postponement in approving their compliance plans.

This is despite government’s pressure for the institutions to conform to the law compelling foreigners to cede majority shareholding to black locals — with former Empowerment minister Savior Kasukuwere having given them several ultimatums.

According to Baz, there are 21 banks operating in the country, 15 indigenous and six foreign-owned.

Meanwhile, MBCA recorded a 11 percent decline in profit in the six months to June from $2,1 million registered in the prior period due to an increase in employee costs on the backdrop of flat-lining interest income.

Interest income for the period stood at $7,8 million from $7,9 million in prior comparative period. Loans and advances were up 29 percent to $100 million.

Deposits also grew to $160 million from $131 million, the bank said.

Employee costs rose to $5,1 million from $4,6 million while interest expense declined to $2,1 million from $2,3 million.

 

Comments (4)

I bank with MBCA and when I withdrew money fron an NMB ATM I discovered that the Zimswitch charges for ATM withdrawals have gone up from $2.35 to $3.35 per transaction, that is an increase of over 42%! I really wonder what the justification is when the country's economy is in deflation. Mr Editor, I think that this would be an interesting story to follow up on.

James Dhludhlu - 17 December 2014

I think u left out BancABC on the foreign owned banks.

Mutape - 21 December 2014

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.