FBC completes Standard Chartered takeover, plans to make it a separate wholesale banking business

FBC Holdings has completed the takeover of Standard Chartered Zimbabwe, and says it plans to turn the new business into a “powerhouse” targeting the niche wholesale banking market.

Under the deal, FBC now owns 100% of Stanchart Zimbabwe and StanChart’s Africa Enterprise Network Trust, which owns a 20.7% stake in property company Mashonaland Holdings. All regulatory approvals have now been received, FBC said in a statement on Saturday.

“We are creating a financial powerhouse that caters for the evolving needs of Zimbabwe’s dynamic economy. The combined product and service offerings will allow us to serve a wider range of customers,” says Trynos Kufazvinei, FBCH group CEO.

According to FBC, the Standard Chartered business will form “a new, semi-autonomous wholesale banking product suite within FBCH”. Wholesale banking provides services to larger clients, such as other banks and institutions.

In March, StanChart said the bank would “operate as a separate bank, and we’re in the process of securing necessary approvals for the bank’s new name”. Last year, as part of the transaction, FBC deposited US$34m into an escrow account to show “capacity” to complete the deal.

FBC Bank was Zimbabwe’s fourth largest bank by loan book as at December 2022, the latest available figures from RBZ, accounting for 11% of loans. Standard Chartered held just 1.1% of loans in 2022, down from 3% in 2021.

FBC will retain all Stanchart employees. “The acquisition incorporates the highly skilled SCBZ workforce with exposure to international best practices. This, when integrated with FBCH’s existing culture, creates a dynamic team with the expertise to deliver exceptional service to our diverse client base.”

FBC has also been attracted to Stanchart’s investments. “In addition to its 20.7% shareholding in Mashonaland Holdings, SCBZ brings a valuable portfolio of investment properties that will further strengthen FBCH’s existing holdings.”

Kariuki Ngari, CEO for Standard Chartered Kenya and Africa said his company keep providing transaction support for FBCH. He said: “Standard Chartered will continue to facilitate and be a bridge for international capital flows into the country, working closely with FBCH.”

ALSO READ | Mushayavanhu: FBC’s takeover of Standard Chartered is the key to a bigger share of banking market