.Bank of Zambia released a statement on their website informing the public that it had taken possession of Intermarket Banking Corporation on account of the fact that the entity was insolvent. Insolvency breaches Section 81 of the Banking and Financial Services Act (BFSA):
The Bank of Zambia is empowered by section 81 of the bfsa to take POSSESSION of a financial service provider, where in its opinion, an inspection of the financial service provider instituted under this act shows that:
Intermarket Bank is one of 19 registered commercial banks in Zambia. It is majority owned by Afriland First Group of Cameroon. Their website is currently down and their is'nt any publicly available data to ascertain how many depositors have exposure to this bank.
Investrust Bank Plc. (LUSE: INVESTRUST) reported a K6.4 million net loss in financial year (FY) 2014, more than doubling the loss sustained by the Group in FY 2013 (K2.8 M):
Standard Chartered Bank Zambia Plc. (LUSE: SCZ) reported a 3% year-on-year increase in net profit to K244 million in financial year (FY) 2014. Earnings per Share (EPS) came in at K0.146 (K0.142 in 2013):
Zambia National Commercial Bank (LUSE: ZANACO) reported a 23% year-on-year decrease in net profit to K143 million in financial year (FY) 2014. Earnings per Share (EPS) came in at K0.017 (K0.02 in 2013):
Sixty-nine people with links to Zambia were among the 100,000 clients of banking giant HSBC’s Swiss subsidiary holding $48.3 million (K314 M) in their accounts. This is according to data from a former IT employee of HSBC’s Swiss subsidiary who hacked into client accounts and took almost 60,000 files before fleeing to France. The US-based International Consortium of Investigative Journalists (ICIJ) has summarized this data on an interactive global map on their website – here are the charts related to Zambia:
The average overnight interbank rate has dropped by 900 basis points from a year-to-date high of 25.1% on June 27 since the Bank of Zambia started implementing Open Market Operations (OMOs) last week. The overnight interbank rate is the rate at which banks lend to one another on a short-term basis. The rate was at 15.96% today:
Government set to release $600m VAT refund to affected miners
According to a report by the Daily Mail newspaper on Wednesday, the government will start releasing the $600m in VAT refunds which has been withheld from mining companies which were failing to provide import certificates from destination countries where Zambian copper was being exported. The paper quoted the Minister of Mines who had said that some mining companies had stated complying with the requirement subsequent to which the Zambia Revenue Authority was instructed to begin working on repayment of the funds.
Kwacha continues fall, ends the week at 6.61
The Kwacha hit a record low of K6.71 per $US dollar before closing the week at K6.61:
Two weeks before the $1bn bond offering, there were investor roadshows in Los Angeles, San Francisco, Boston, New York and London (the same destinations as before the 2012 offering). The final allocations by industry were as follows:
Finance bank brings home the bacon
Finance bank came in with a Net profit of K71m, up a whopping 39% year-over-year. Active customers have grown by 43% to over 150,000. The bank is looking go ahead with two planned IPOs on the Lusaka and the London Stock exchanges. The IPOs were mooted to go through last year so perhaps a pinch of salt but let’s wait and see. Not bad for a bank which was almost sold for a pittance to FNB of South Africa.
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *