FMB eyes regional footprint
FMB has described its acquisition of Barclays Zimbabwe as a milestone in the bank’s strategy to become a leading bank in Africa.
Last week, Barclays Bank PLC announced it was selling 42.68 percent of its 67.68 percent shareholding in Barclays Bank of Zimbabwe to FMB with an additional 15 percent of shares being earmarked for an employee trust.
In acquiring the bank, FMB received the right to purchase Barclays PLC’s remaining 10 percent interest at a future date.
FMB was established in 1995, listed on the Malawi Stock Exchange in 2006 and began its regional expansion as recently as 2008.
FMB Group Managing Director Dheeraj Dikshit has said the two parties have agreed on a three-year transition plan which will facilitate a systematic migration from Barclays’ operating platforms to those of FMB and that, during this period, both banks would deploy considerable resources to ensure a smooth transition.
“Our Barclays Zimbabwe acquisition is a very significant, very large transaction, one which we have been able to fund from our own resources,” Dikshit said.
“It reflects the sophistication of both FMB’s leadership and that of Malawi’s financial services sector. I believe, with all humility, that this is an achievement all Malawians can take pride in, most especially our dedicated staff.”
Barclays PLC’s sale of its shareholding in Barclays Zimbabwe is subject to regulatory approvals but is expected to be concluded by the end of the third quarter of 2017.
In Malawi, FMB operates retail and corporate services and owns Leasing and Finance Company which offers asset financing, mortgage loans and leasing schemes.
FMB also has effective control of FCB Zambia and Capital Bank Botswana and owns 70 percent of Capital Bank Limited Mozambique.
At its latest financial year e n d , the group had total capital of $74 million and total assets of $452 million. Barclays Zimbabwe had total assets of $65 million and total assets of $470 million.
In the 2016/17 financial year, the FMB group recorded $12.8 million net profit after tax while Barclays Zimbabwe had a net profit after tax of $10.4 million.