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Trust bank recapitalisation on course

EFFORTS to recapitalise Trust Bank Corporation TBC remain on course amid revelations some of the bank’s major depositors have given support to the bank’s ongoing efforts to recapitalise the banking subsidiary of the Zimbabwe Stock Exchange (ZSE) listed Trust Holdings Limited (Trust), sources have said.

Well-placed sources told businessdigest this week that Trust’s major shareholders, who have already committed to inject US$9 million in fresh capital in the bank, last week embarked on a major stakeholder roadshows meant to stabilise the bank’s institutional depositor base, ahead of the conclusion of ongoing negotiations with potential merger partners and new investors.

Sources said the bank’s major institutional depositors, which include the National Social Security Authority (Nssa),  had lent their support to the bank, allaying fears that major funders would desert the bank following possible imminent and unavoidable shareholder changes at the bank.

Nssa general manager James Matiza confirmed meeting Trust excutives last week.

“Yes we had a meeting with them, and they were in the company of some people whom they identified as their investors. The object of their visit was to assure us as depositors that the bank now needed just a bit of time to allow investors to put in fresh capital,” Matiza said.

Increasing the bank’s existing shareholder equity, attracting new foreign investors and the ongoing merger efforts remain the main pillars of the banks recapitalisation plans aimed at meeting the RBZ minimum capital requirements.

Trust Holdings Head of Marketing and Public Relations Gloria Mutekwa told businessdigest that the bank had now finalised its financial results for the year ended December 31, 2012, dispelling market speculation and reports that it had failed to release the figures as required by the law.

She said the delay was necessitated by the ongoing due diligence exercise and annual audit.

“Trust is a listed concern and we are always fully compliant. We obtained the necessary extensions and consent of the relevant authorities to delay the publishing of our results. This was a special dispensation given to the bank as we needed to ensure that our final accounts as audited would be in conformity with the due diligence findings of our potential partners,” Mutekwa said.

Trust Bank is due to release an EGM notice once the financials have been published. The ZSE-listed Trust, whose other subsidiaries are Trust Insurance Brokers, Trust Properties and Trust agriculture, continues to trade under cautionary to investors.

“It is also necessary for stakeholders to appreciate that the impending changes at Trust have resulted in the company taking moves intended to protect shareholder and depositor value, so that assets are preserved in preparation for a stronger re-emergence,” Mutekwa said.

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