Harare, Zimbabwe – May 18, 2024 – Following the announcement on June 8, 2023, FBC Holdings Limited (FBCH) is pleased to announce the successful takeover of Standard Chartered Bank Zimbabwe from Standard Chartered Plc.
Under the agreement, FBCH has acquired 100 percent of the shareholding in Standard Chartered Bank (Zimbabwe) Limited (“SCBZ”) and by extension, Standard Chartered Nominees Zimbabwe (Private) Limited (“SCNZ) which is wholly owned by Standard Chartered Bank Zimbabwe. As part of the agreement, FBCH has also acquired the economic interest in Africa Enterprise Network Trust (AENT) whose main asset is a 20.7% shareholding in Mashonaland Holdings. FBCH will continue to employ all of Standard Chartered Bank Zimbabwe’s employees.
This significant milestone marks the culmination of collaborative efforts between both parties to meet regulatory approvals. We are now completing the migration process. We confirm that effective 18 May 2024, we have taken control of the operations of SCBZ, SCNZ and received the assignment of the economic interest of AENT.
Enhanced Capabilities to Serve Zimbabwe's Dynamic Economy
"This acquisition goes beyond geographic expansion," stated Trynos Kufazvinei, FBCH Group Chief Executive Officer. "We are creating a financial powerhouse that caters for the evolving needs of Zimbabwe's dynamic economy. The combined product and service offerings will allow us to serve a wider range of customers, leveraging the strengths of both institutions to deliver exceptional value to our stakeholders."
Seamless Transition and a Strategic Step Forward
FBCH expressed gratitude for Standard Chartered Bank's professionalism throughout the process. Both teams have worked diligently to ensure a smooth transition with minimal disruption to client banking experiences. Kariuki Ngari, Chief Executive Officer for Standard Chartered Kenya and for Africa said “ We worked closely with FBCH to complete this acquisition and as we transition the business to FBCH, I want to thank the Regulators in Zimbabwe for their support and all employees for their contributions and wish them the best in their future career with FBCH. Standard Chartered will continue to facilitate and be a bridge for international capital flows into the country, working closely with FBCH.”
The acquisition of SCBZ signifies a strategic step forward for FBCH. The legacy Standard Chartered business will form the foundation of a new, semi-autonomous wholesale banking product suite within FBCH. This development complements FBCH's existing retail banking strengths, while leveraging digitalization and robust risk management practices to deliver a more comprehensive suite of financial solutions.
Building a Leading Financial Services Provider
The acquisition offers a compelling range of benefits for FBCH, our customers, and shareholders:
- Enhanced resilience and competitiveness: The combined entity boasts a larger asset base, broader customer reach and wider geographical footprint. This strengthened position allows us to improve our adaptation to industry challenges.
- Expanded service offerings: By leveraging the combined strengths, capabilities, and expertise of both institutions, we are able to create a dynamic financial services group. This will allow for improved loan underwriting capacity and enable us to serve a wider range of customers across diverse market segments.
- Increased efficiency and profitability: Consolidation of back-office operations, systems, and resources will lead to economies of scale and operational efficiencies.
- Significant shareholder value creation: The enlarged group is expected to deliver enhanced earnings and improved return on equity.
- Building a high-performing team: The acquisition incorporates the highly skilled SCBZ workforce with exposure to international best practices. This, when integrated with FBCH's existing culture, creates a dynamic team with the expertise to deliver exceptional service to our diverse client base.
- World-class digital transformation: Access to SCBZ's advanced digital capabilities will significantly accelerate FBCH's ongoing digitization efforts, leading to a more seamless and efficient customer experience.
- Expanded investment portfolio: In addition to its 20.7% shareholding in Mashonaland Holdings, SCBZ brings a valuable portfolio of investment properties that will further strengthen FBCH's existing holdings.
We are confident that this strategic expansion will further solidify FBCH's position as a leading financial services provider in Zimbabwe and look forward to a seamless transition for SCBZ's employees and customers.
We welcome the clients and staff of Standard Chartered Bank Zimbabwe as they join the FBC family.