WARNING: This is Version 1 of my old archive, so Photos will NOT work and many links will NOT work. But you can find articles by searching on the Titles. There is a lot of information in this archive. Use the SEARCH BAR at the top right. Prior to December 2012; I was a pro-Christian type of Conservative. I was unaware of the mass of Jewish lies in history, especially the lies regarding WW2 and Hitler. So in here you will find pro-Jewish and pro-Israel material. I was definitely WRONG about the Boeremag and Janusz Walus. They were for real.
Original Post Date: 2010-04-06 Time: 15:00:02 Posted By: News Poster
By Martin Kadzere
Harare – FBC Holdings Ltd is seeking to raise US$8 million through a rights offer to recapitalise its two subsidiaries and ensure they comply with the Reserve Bank-prescribed minimum capital thresholds.
The financial group intends to raise US$5 million for FBC Building Society and US$2,5 million for FBC Reinsurance.
The rights offer will be on the basis of 63 new rights offer shares for every 100 shares already held and these would be allotted at a subscription price of US0,035 cents per share.
In their results statement, FBC said if the rights issue is approved by shareholders during the extraordinary general meeting set for later this month, the rights offer shares will be listed on the Zimbabwe Stock Exchange on May 17.
While the group’s flagship, FBC Bank, and its securities subsidiary are adequately capitalised in respect of statutory minimum capital, FBC Building Society and FBC Re require recapitalisation.
Genesis Investment Bank Limited will underwrite the exercise.
The Reserve Bank set the minimum capital requirements for commercial banks at US$12,5 million, building societies and merchant banks at US$10 million, finance and discount houses at US$7,5 million and US$500 000 for asset managers by March 31, 2010.
Last year, FBCH recorded pre-tax profit of US$6 million for the full year ended December 31, 2009.
The commendable performance came on the back of a near-zero position following the impairment of the group’s financial assets following the adoption of multi-currency in January 2009.
The adoption of multi-currency brought its own challenges that included severe liquidity constraints in the economy, a dysfunctional inter-bank market, absence of the lender of last resort and limited access to international lines of credit.
During the course of the year, the group, through the bank, acquired 59 percent of ZSE-listed Turnall Holdings following realisation of collateral on a non-performing debt.
The entity contributed significantly to the group’s bottom line. Total income amounted to US$30,4 million.
FBC Bank contributed 44 percent at US$13,5 million. Net interest income amounted to US$53 million with net fees and commissions coming in at a modest US$3,6 million.
Other non-funded income totalled US$21,6 million. The group’s cost-to-income ratio remained in the high at 80 percent, signifying cost pressures against constrained business activity, particularly during the first half year.
Segment contribution towards operating profit before tax was as follows: Bank US$1,2 million, Re-insurance US$665 000, Turnall US$1 million, and the building society and stockbroking providing just about US$60000.
Total profit after tax was US$5,2 million translating to an earnings per share of USc1,3.
During the period under review, the bank fell prey to a spat of robberies and fraud that hit the country and consequently lost US$1,4 million which has since been accounted for in the group’s results.
However, recovery of the lost funds is estimated at US$1,1 million.
Capital adequacy ratio for the bank stood at 35 percent, while that of the building society was at 95 percent.
The banks’ total deposits stood US$95 million, giving it 7,4 percent of total market share, and had heaved by an astonishing 68 percent for the three months to March 2010, with over 70 000 active accounts.
Advances to clients amounted to US$22 million, a conservative loans-to-deposit ratio of 23 percent.
Going forward, the group expects to contain costs growth through promotion of e-commerce.
The growth in deposits is expected to cascade into an increase in advances to customers, and a subsequent increase in interest income this year.
The group announced that Afreximbank had extended a US$15 million line of credit, which is expected to be advanced to industry for retooling and increasing capacity utilisation.
Original Source: 
Published by the government of Zimbabwe
Original date published: 6 April 2010
Source: http://allafrica.com/stories/201004060031.html?viewall=1