HomeBusiness DigestKingdom earns $3,3b for Meikles

Kingdom earns $3,3b for Meikles

Ngoni Chanakira

FINANCIAL powerhouse Kingdom Financial Holdings Ltd (KFHL) has earned $3,3 billion for its sister company, the cash-rich Meikles Africa Ltd (Meikles).

dana, Arial, Helvetica, sans-serif”>Meikles chief executive officer Chris Parvin told businessdigest in an interview that he hoped the strong bond between his company and Kingdom would continue to reap rich rewards for shareholders and directors.

“Nigel (Chanakira) and his team are doing a fine job especially during this time of financial problems facing the country,” Parvin said. “I hope this performance can continue and lead us to even greater heights.”

Meikles own 25% of Kingdom and the two are working on improving their financial services within the supermarket chains countrywide.

Meikles owns TM, Greatermans and Barbours – a facility Kingdom customers can access.

Parvin said Kingdom needed to speed up its regional expansion programme because it could become costly if delayed.

“Sometimes your competitors who get into the same business move fast and then you lose out,” Parvin said. “The Kingdom team needs to move fast with their regional expansion programme which I believe is going according to schedule.”

The financial services group has a market capitalisation of $30 billion.

Kingdom has invested $1,3 billion in a regional expansion programme that will see the financial giant spread its services and snap up major stakes in companies operating in Botswana, Malawi and Zambia.

Firm footholds have been established by Kingdom in the financial markets in Malawi and Zambia.

In May this year Botswana came on stream.

Kingdom now runs the International Financial Services Centre in Botswana in a move analysts said would earn the group foreign currency.

Analysts said the investments in a massive regional expansion programme contributed 4% to group revenues during the year 2002 which was expected to increase this year.

Analysts said strong market penetration by the group in the various regional markets was now evident, taking advantage of market studies, extended products, technology and process developments.

Company chairman Richard Muirimi told shareholders in his 2002 annual report that Kingdom’s value proposition for the region was focused on its proven mastery in securities trading, asset management and corporate advisory services from a small capital base.

He said the southern African region offered Kingdom substantial opportunities to earn attractive and sustainable profits, and these were being pursued, subject to the raising of capital outside Zimbabwe.

“Shareholders will be appraised on these developments at the appropriate time,” Muirimi said.

Kingdom’s core business encompasses capital markets, foreign exchange and money markets, microlending, stockbroking, retail banking, merchant banking, portfolio management, economic and company research and lease financing.

The company’s shares are currently trading at $85 on the Zimbabwe Stock Exchange.

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