Categories: Stories

ZB Bank gets $20 million interest free loan

ZB Financial Holdings says it has secured $20 million in interest free loan from one of its major shareholders its subsidiary, ZB Bank Limited, to boost its capital base and that its performance in the first four months of the year were above budget.

Chief executive Ronald Mutandagayi  said at the AGM in May that operating costs for the period were 15 percent lower after aggressive cost-cutting measures designed to respond to the poor economic performance.

The group, which has banking and insurance subsidiaries, said yesterday it expects to maintain the growth trend for the rest of the year.

“…the performance of the ZBFH Group for the four months ended 30 April 2015 reflected an improvement driven by a notable decrease in the Group’s operating costs. The performance was above the budget set for the period,” it said in a trading update to the Zimbabwe Stock Exchange.

“Indications are that this trend is likely to be maintained for the rest of the year.”

Mutandagayi said at the AGM that as a result of the good performance, the cost to income ratio has improved to 82 percent from levels above 100 percent during 2014.

The loan from the shareholder had a 10-year tenor, it said.

In addition the group was pursuing other unmentioned measures to boost the bank’s capital.-The Source

(302 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

View Comments

Recent Posts

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024

The Zimbabwe Gold will regain its value if the government does this…

Economist Eddie Cross says the Zimbabwe Gold (ZiG) will regain its value if the government…

October 16, 2024

Is Harare the least democratic province in Zimbabwe?

Zimbabwe’s capital, Harare, which is a metropolitan province, is the least democratic province in the…

October 11, 2024

Zimbabweans against extension of presidential term in office

Nearly 80% of Zimbabweans are against the extension of the president’s term in office, according…

October 11, 2024