FBC to brand Stan Chart acquisition as Crown Bank ...

FBC to brand Stan Chart acquisition as Crown Bank for wholesale banking

Nyashadzashe Ndoro

Zim Now Chief Reporter

FBC Holdings has announced plans to rebrand the acquired Standard Chartered business as FBC Crown Bank, positioning it as a premium offering.

According to Herbert Nkala, Chairman of FBC, the acquired bank will operate independently of the company's existing operations.

"FBC Crown Bank will operate semi-autonomously as a subsidiary of FBC Holdings, retaining its banking license," Nkala explained to shareholders at the Annual General Meeting.

"Its focus will be on wholesale banking for large blue-chip corporate clients and high net worth individual clients."

Meanwhile, FBC Bank will continue to serve the consumer and SME market. The acquisition, which was completed for a total purchase price of US$26.7 million, has already boosted FBC's share of bank customers.

"We have increased our customer base, resulting in a 2-3% increase in market share, a positive move for shareholders," said Trynos Kufazvinei, CEO of FBC.

As of December 2022, FBC Bank was Zimbabwe's fourth-largest bank by loan book, accounting for 11% of loans, while Standard Chartered held just 1.1% of loans, down from 3% in 2021. In addition to the banking business, FBC also acquired StanChart's investment arm, which held a 20% stake in property developer Mashonaland Holdings. FBC plans to use this stake to strengthen its foothold in real estate.

"As you know, we acquired Africa Enterprise Network Trust, which owned 20% of Mashonaland Holdings. This is now within the group, buttressing our investment portfolio. We will explore options to work together and unlock value on these investments," Kufazvinei said.

FBC's building society unit is currently working on property developments in Zvishavane, Masvingo, and Hwange. Instead of building a new head office, FBC plans to develop a two-hectare stand, potentially through a real estate investment trust.

"Many banks have started building head offices, but we chose to acquire a business instead. We want to develop this stand, possibly through a REIT," Kufazvinei explained.