BANCABC Zimbabwe is the country’s fastest growing bank since the advent of the multi-currency system in 2009.
Report by Clive Mphambela
It is now the country’s second largest bank by both deposits and advances, latest research reveals.
According to the latest banking sector survey report released this week by Harare-based research institution MMC Capital, which tracks bank performances since 2009, BancABC has made massive strides in market share gains.
The survey covered 22 banking institutions that released their trading results for the year ended December 31, 2012.
The deposits and market share analysis by MMC shows BancABC has moved from position 10 on deposit market share rankings in 2009, when the bank had a market share of 2,4% to second position after CBZ at the end of 2012, when the bank’s market share had grown to 9,8%.
BancABC has also moved up on the lending rankings. In 2009, the bank was the country’s 13th largest lender, but following an increase in deposits, increased offshore lines of credit and new capital injection, the bank’s US$350 million loan book gives it a market share of 11,85%, again second only to CBZ’s 26,14% position. CBZ has a US$774 million loan book.
Banc ABC’s market share came ahead of Cabs in third position with US$278 million(9,39%), Stanbic Bank’s US$213 million (7,2%) and Standard Chartered Bank’s US$197 million, followed by FBC Bank in sixth position with US$159,5 million (5,39%). BancABC joins CBZ as the second tier one bank, while Cabs, Stanbic, Stanchart and FBC are in MMC’s tier two ranking.
Last year, ABC Holdings group CEO Douglas Munatsi said the group aimed to make BancABC one of the top 10 banks in each of the countries in which it operates. BancABC operates in Zimbabwe, Botswana, Zambia, Mozambique and Tanzania and has a representative office in South Africa.
Recently, BancABC announced what it said were “outstanding” results for the full year to December 31, 2012, reporting record growth in revenues and profits, confirming its growing strength in the Southern African retail banking sector.
The bank’s Zimbabwe operations increased its contribution to the group’s attributable profits to BWP103 million (US$13 million), 88% higher than the BWP55 million (US$6,9 million) recorded the previous year.
According to Munatsi, this was achieved largely due to significant inroads made by the bank into the group loan scheme product, launched in Zimbabwe in the year under review.
The bank said its concerted expansion into the retail banking sectors of Botswana, Mozambique, Tanzania, Zambia and Zimbabwe drove total income above the BWP1 billion mark for the first time (BWP1,087 million (US$126,2million) against BWP659 million (US$83,18million) in 2011).
“In 2012 we grew the number of branches to 61 from 49,” Munatsi said. “BancABC has now achieved critical mass in retail banking in Botswana, Zambia and Zimbabwe. Certainly, some challenges remain in Tanzania and to a lesser extent Mozambique, but the Group is confident of gaining traction in these markets”.