CBZ Bank Limited (Dec 2022)

CBZ Holdings Limited wholly owns 100% of CBZ Bank Limited. As the core operating entity, the analysis on CBZ Bank Limited (“CBZ Bank”, “the bank”) reflects the strengths and weaknesses of the wider CBZ Holdings Limited Group (“CBZH”; “the Group”). The Bank is incorporated in Zimbabwe and offers retail banking, mortgage finance, commercial banking, investment banking, small to medium enterprise financing, treasury management, wealth management, agribusiness, lease financing and custodial services.

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ZB Bank Limited (Dec 2022)

ZB Bank Limited (“ZB Bank”, “the Bank”) is wholly owned by ZB Financial Holdings Limited (“ZB Holdings”,”the Group”), a holding company focused on the provision of financial services and whose shares are traded on the Zimbabwe Stock Exchange. The group offers commercial banking, mortgage finance, micro-finance, Asset management, re-insurance, Life assurance, Agro business and other financial services and is incorporated in Zimbabwe. The Group does not have an ultimate parent as several shareholders own it, none of which have a controlling interest.

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FBC Building Society (Nov 2022)

FBC Building Society (“the company”,” the society”) is a wholly owned subsidiary of FBC Holdings Limited (“the Group”), which is domiciled in Zimbabwe, listed on the Zimbabwe Stock Exchange. The company engages in mortgage lending, retail banking, property development and treasury investments. The society has a network of 6 branches across the country hosting a staffing contingent of 105 employees.

The society is not a material asset or revenue contributor to the Group. As a result, the analysis was based on a mixture of the bank’s standalone credit analysis and group support characteristics.

Zimbabwe is a hyperinflationary economy, and the financial results were prepared in accordance with IAS 29. Only the inflation adjusted results are audited, and as such, GCR does not use historical figures in its analysis.

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Zimbabwe Banking Industry Overview (Sep 2022)

Zimbabwe has faced tough economic challenges and extraordinary shocks caused by the protracted drought, cyclone Idai, and the COVID-19 pandemic, which led to sharp contractions in economic growth in 2019 (-6.1%) and 2020 (-4.1%), while inflation reached 837% (YoY) by July 2020. According to the International Monetary Fund (“IMF”), real GDP growth rebounded to 6.3% in 2021. Due to better rainfall in the 2020/21 season which boosted agricultural production (through a bumper maize harvest) and electricity generation, assisted by improved capacity utilisation in industry; increased mining activity; buoyant construction; and the stabilisation of prices and exchange rates. A tighter policy stance since mid-2020 relative to 2019 contributed to lowering inflation to 60.7% (YoY) at end-2021.

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Ecobank Zimbabwe Limited (Oct 2022)

Ecobank Zimbabwe Limited (“Ecobank Zimbabwe”, “the bank”), is incorporated and domiciled in Zimbabwe and provides retail, corporate and investment banking services in Zimbabwe. As at June 2021, Ecobank Zimbabwe was classified as a domestic systemically important bank (“D-SIB”).

The bank’s ultimate parent is Ecobank Transnational Incorporated (“ETI”) and Ecobank Zimbabwe made a small contribution towards assets and revenues of the wider Group. As a result, the analytical approach was based on the bank’s standalone credit profile whilst applying Group support uplift.  

The financial results were prepared in accordance with IAS 29 which requires that the financial statements of any entity whose functional currency is the currency of a hyperinflationary economy be stated in terms of the measuring unit current at the reporting date and that corresponding figures for the previous period also be restated in terms of the same measuring unit.

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FBC Reinsurance Company Limited (Oct 2022)

FBC Re was born out of a merger of Southern Africa Reinsurance (originally incorporated in 1994) with the FBC Bank reinsurance unit in 2004. The reinsurer is wholly owned by FBC Holdings Limited (“FBCH”), an investment holding company listed on the Zimbabwe Stock Exchange. FBCH is the investment holding company of the FBC Group and represents diverse financial institutions that also include a commercial bank, building society, insurance company and a stockbroking unit. FBCH’s major shareholders include the National Pension Scheme (35%), Shorecap II Limited (7%), Tirent Investments Limited (4.7%) and Cashgrant Investments Private Limited (4.1%). FBC Re is part of a group and a standalone analytical approach was followed with considerations made to the group cap. 

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First Capital Bank Zimbabwe Limited (Sep 2022)

First Capital Bank Limited provides retail, corporate and investment banking services in Zimbabwe. The Bank which is incorporated and domiciled in Zimbabwe is a registered commercial bank under the Zimbabwe Banking Act. The bank has a primary listing on the Zimbabwe Stock Exchange.
The bank is a majority owned subsidiary of the ultimate parent company FMBcapital Holdings PLC and is not a material asset or revenue contributor. As a result, the analysis was based on a mixture of the bank’s standalone credit analysis and group support characteristics.
Zimbabwe is a hyperinflationary economy, and the financial results were prepared in accordance with IAS 29. Only the inflation adjusted results are audited, and as such, GCR does not use historical figures in its analysis.

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Nedbank Zimbabwe Limited (Sep 2022)

Nedbank Zimbabwe is incorporated and domiciled in Zimbabwe. The bank’s full-service offering attracts mainly a corporate clientele. Nedbank Zimbabwe’s key functional business lines, being corporate and retail banking, business development and institutional banking and treasury are supported by a modest distribution network.

The analytical approach is based on a mixture of the bank’s standalone credit analysis and Group support characteristics. Only the inflation adjusted results are audited, and as such, GCR does not use historical figures in its analysis.

These financial results have been prepared in accordance with IAS 29 which requires that the financial statements of any entity whose functional currency is the currency of a hyperinflationary economy to be stated in terms of the measuring unit current at the reporting date and that corresponding figures for the previous period also be restated in terms of the same measuring unit.

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FBC Bank Limited (Sep 2022)

FBC Bank Limited, is a wholly owned subsidiary of FBC Holdings Limited. FBC Holdings Limited (“the Company”) and its subsidiaries (together “the Group” or “FBCH”) provide a wide range of commercial banking, mortgage financing, micro lending, reinsurance, short-term insurance, and stockbroking services. The Company is a limited liability company, which is listed on the Zimbabwe Stock Exchange. The Company and its subsidiaries are incorporated and domiciled in Zimbabwe.

As the core operating entity, the analysis on FBC Bank Limited (“FBC Bank” or “the bank”) reflects the strengths and weaknesses of the wider FBC Holdings Limited Group.

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Cellmed Health Medical Fund (Sep 2022)

CellMed Health Medical Fund is a medical aid society registered in 2009 in terms of the Medical Aid Services Act (Chapter 15:13). The fund is incorporated and domiciled in Zimbabwe, and is engaged in the provision of health insurance. Although initiated and administered by Cell Insurance, CellMed is an open medical scheme, notably relying on the insurer for technical support and expertise. As such, the entity targets to upscale its membership base and market share by attracting small and medium size groups with a younger age profile. This strategy is likely to preserve the scheme’s good risk base, while enhancing membership diversification over the longer term.

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