MBCA Bank cedes shares to workers

Published: 08 March 2018

MBCA Bank has ceded 7.5 percent shares to its workers through the Employee Share Ownership Scheme in line with the approved indigenisation plan.

MBCA Bank chairman, Mr Vimbai Zireva, said this in a statement accompanying the bank's financial results for the year ended December 31, 2017.

He, however, said the banking sector was awaiting the revision of the Indigenisation and Economic Empowerment Act to reflect the pronouncements by President Emmerson Mnangagwa and in line with the Minister of Finance and Economic Development Patrick Chinamasa's December 2017 fiscal statement.

"In the meantime, employees were awarded shares through the ESOS during the year in line with the approved Indigenisation plan, which will result in employees owning 7.5 percent of the bank's shares upon conclusion of the plan in 2018," Mr Zireva.

Presently, the Government is working on crafting legislative provisions to clarify changes to the Indigenisation and Economic Empowerment Act.

President Mnangagwa has announced that the Indigenisation and Economic Empowerment Act will only be applicable to the country's diamond and platinum mining sector, a development that has raised hopes for massive Foreign Direct Investment.

Initially the Act covered all sectors of the economy with foreign investors with businesses operating in the country required to cede 51 percent of their shares to indigenous investors and this has been blamed for scaring away potential foreign investors.

During the period under review, MBCA recorded a 40 percent increase in profit after tax to $7.8 million from $5.65 million in 2016. The positive growth trajectory in profit after tax in 2017 by MBCA was largely as a result of a 19 percent increase in non-interest income supported by increased volume of transactions on new products and enhancements to existing products. The bank also benefited from the volatility of some currencies as a result of developments on the global market.

Net interest income increased from prior year position of $15 million to $16.57 million.

MBCA's total assets last year grew significantly by 23 percent to $369 million from $298.89 million mainly as a result of the bank's investments in AfreximBank Trade Debt Backed Securities and Treasury bills.
- newsday

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