FBC Holdings’ history, milestones

15 May, 2020 - 00:05 0 Views
FBC Holdings’  history, milestones

eBusiness Weekly

Business Writer
Zimbabwe Stock Exchange (ZSE-listed diversified financial services conglomerate), FBC Holdings Limited (FBCH) has a history and growth moulded around innovations and enhancement of acquisitions. The group offers diverse financial services via commercial banking, mortgage financing, short-term insurance, re-insurance, securities trading and micro financing.

The group houses five major subsidiaries that include FBC Bank Limited, FBC Building Society, FBC Reinsurance, FBC Securities (Private) Limited, Micro-Plan Financial Services (Private) Limited and FBC insurance.

Germinal was the Licensing and commencement of First Banking Corporation Limited in 1997. First Bank Corporation got listed on ZSE through an initial public offering (IPO) in 2001. It was delisted in 2004 for fresh listing as FBC Holdings Limited after the latter acquired full ownership.

It changed name to FBC Bank Limited on August 18, 2004 after being wholly acquired by FBC Holdings limited.

1991 and years beyond had provided ground for the proliferation of financial institutions with deregulation and liberalisation of the banking sector constituting part of the Government’s Economic Structural Adjustment Programme (ESAP).

This saw the extinction of barriers to entry infused in an oligopolistic nature of the banking sector, reminiscent of the preceding Banking Act. FBC Banking Corporation was one of the many financial institutions that exploited the opportunity provided by the erasure of such restrictive laws. The Banking Act was amended in 2000 to make it further possible for banking institutions to transform into commercial banks by acquiring additional functions on their licences.

FBCH’s reinsurance business was first incorporated in 1994 and operated as the Southern Africa Reinsurance Corporation (SARE). It was re-branded to FBC Reinsurance Limited in 2004 when FBC Holdings assumed major shareholding.

The Corporate identity, “FBC” was officially launched in 2005.

FBC Securities Limited, was instituted in 2005 as an investment to complement financial service solutions. The subsidiary facilitates ownership and disposal of listed securities on the Zimbabwe Stock Exchange.

During the same year FBCH acquired 60 percent stake in Zimbabwe Building Society (ZBS). Subsequently, the name changed to FBC Building Society. The remaining 40 percent stake was then held by the National Social Security Authority (NSSA).

In 2011 FBCH acquired 95 percent shareholding in Eagle Insurance and re-branded the business to FBC Insurance. Eagle Insurance is a product of a 1965 merger between African Guarantee Insurance and Eagle Star of London.

Of late the insurance division launched a first in Zimbabwe customer driven motor insurance product christened “MyDrive”, to provide clients with fair and affordable insurance pricing. MyDrive won the 1st Runner up Innovative Product Award in the Business Weekly Inaugural Consumer Insurance Awards.

Among other milestones, FBCH was accorded recognition as one of the nation’s Top Five Listed Companies in the Zimbabwe Independent 2018 Quoted Companies Survey (QCS). The survey’s considerations comprised among other things market capitalisation, ratio of volumes traded to listed shares, share price movement, highest percentage movement during the financial year, comprehensive net income for the year, growth in turnover, growth in net profit, growth in total assets and net profit margin.

The counter held a market capitalisation of $408 209 581 and a share price of 60,5 cents as updated on trading date October 8, 2019.

John Mushayavanhu is the current group chief executive officer.


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