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Jewel rules out merger

Godfrey Marawanyika

BUOYED by a $107,2 billion after tax profit, the Jewel Bank of Zimbabwe has ruled out any possible mergers or acquisitions.

sans-serif”>The bank’s unaudited results were very much above forecast and at the top end of the market.

The Jewel Bank recorded above market expectations with basic earnings per share increasing to $230 per share.

This was a 1 983% increase compared with the previous year’s $1, 20 per share.

Jewel Bank chief executive officer Nyasha Makuvise said it was unnecessary for his institution to consider any mergers both locally or internationally.

“We will survive on our own, but at this stage there is no scope for us to either merge or acquire any other bank,” Makuvise said.

“When you either merge or try to acquire another bank you will spend a lot of time concentrating on that, and in the process trying to adjust to a new culture.”

Makuvise’s statement comes at a time when several financial institutions are trying to beat the end of September deadline for the new $10 billion capilisation requirements.

Makuvise took over the reins at Jewel following the departure of Gideon Gono, who is now heading the central bank. To date, at least five financial institutions have approached the Competition and Tariff Commission for possible mergers.

According to chairman Richard Wilde, although efforts had been made to reduce the inflation bubble, the authorities still needed to do more to help the productive sector.

“Although the policies have recorded encouraging success with regards to bursting the inflation bubble, more work still needs to be done to improve on capacity utilisation by the industrial sector to help reduce unemployment,” Wilde said.

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