KINGDOM Financial Holdings Ltd (KFHL) chief executive officer Lysias Sibanda says the group will seek to raise US$1 million offshore to capitalise its wholly-owned subsidiary
Kingdom Bank Africa Ltd.
“We have raised US$2 million of the US$3 million we require for the capitalisation of Kingdom Bank Africa Ltd, formerly Kingdom Botswana (Pvt) Ltd. We hope to raise the remaining US$1 million in the near future,” Sibanda said.
Sibanda told businessdigest on the back of above market expectation six months to June 30 results, the group was looking at consolidating its position in Malawi, Zambia and Botswana before venturing into other new markets.
Sibanda said the group would prefer all regional investments to become subsidiaries through increasing Kingdom shareholding in existing investments.
KFHL is currently in negotiations with Investrust in a bid to either secure a management contract in addition to the 25% the group holds or to increase its shareholding to at least 51%.
“We are considering either getting a management contract at Investrust Bank or increasing shareholding to a controlling stake in the event that we fail to get a management contract, but indications are that we might succeed,” he said.
Chairman Richard Muirimi said the increase in shareholding would allow KFHL to “direct and apply our experience in treasury activities, asset management and banking to ensure that they continue to meet our expectations and those of other stakeholders in their respective countries”.
Kingdom Bank Africa Ltd, which finalised the establishment of operations in the International Financial Services Centre, is expected to open for business in the fourth quarter of the year.
Sibanda said Zambia and Malawi contributed 3% to group turnover in the six months to June while Botswana achieved a break-even position.
On the local front, the chief executive said focus would be given to Crown Banking as opposed to the mass market to reposition the bank.
He said the repositioning process included increasing minimum deposit rates to a level where facilities were not worn out on very little return but a devision was yet to be made on what level of increase it would be.
“We will also target corporates through Crown Banking,” Sibanda said.
The group reported an above market expectation 688% increase in earnings per share to $23,67 from $3 while attributable profit was 820% up to $8,4 billion in the six months to June 30. Analysts had forecast earnings per share range of between $15 and $19.
Interest and similar income rose to $19 billion from $4,6 billion during the six months comparable.
The financial holdings group declared an interim dividend of 500 cents per share.
KFHL shares closed at $115 on Wednesday.