BUSINESS REPORTER
FBC Holdings will close five branches and has instructed the remaining
branches to stop accepting paper-based transactions for selected
services with effect from June 1 as the financial services group
embraces digital banking.
“In line with our digitalisation journey, five branches will be closed from
June 1 2020. Our remaining branches across the country will also not be accepting [paper based] transaction for selected services,” the banking
group said.
The branches to be closed are Beitbridge, Nelson Mandela, Samora Machel,
Graniteside and FBC Building Society Centre.
The group said the accounts for the Beitbridge branch would be transferred to the Masvingo branch; those for Graniteside will be transferred to the Southerton branch while accounts for FBC Building Centre will now be housed at the Leopold Takawira branch with effect from June 1. Samora Machel and Nelson Mandela accounts will be transferred to FBC Centre branch.
It said transactions such as Real Time Gross Transaction System, internal transfer, cash withdrawals, MasterCard FBC goes digital, closes five branches prepaid cash deposits, DSTV deposit, multi-currency cash
deposits, and interim statement requests will not be accepted
using manual documents.
In its trading update for the first quarter ended March 31, total net income grew by 88% to ZWL$635.3m from ZWL$337.3m, largely supported by growth in net trading income.
Group administrative expenses on a year on year basis were up 31% to ZWL$249.7m, driven mainly by marketwide pricing distortions. The
group’s cost to income ratio for the period improved to 42%
from 64%. Profit before tax of ZWL$336m and after-tax profit of ZWL$135.7m was achieved for the quarter ended March 31.
FBC said it was reviewing all its business segments with a
view to establishing the impact of the Covid-19 pandemic.
“While there are still a number of unknown variables, preliminary assessments show that the group’s financial performance for the year 2020
may be impacted adversely.
Product and services demand is projected to decrease, while impairment costs will likely increase as revenue streams of our customers are impacted,” it said.
Local financial institutions have embraced digitalisation as they move from the brick and mortar business. In March, CABS, a subsidiary of Old
Mutual Zimbabwe, closed four of its branches across the country as the financial institutions reduces its brick and mortar model against
the backdrop of breakneck changes in technology and a harsh economic environment.
Branches that were shut down are Chegutu, Mt Darwin, Chivhu, and Mpandawana.
Last year, the country’s oldest bank, Standard Chartered Bank Zimbabwe merged some of its branches as it migrated to digital platforms.
This comes after the bank launched the first digital bank in Zimbabwe in July.
The bank merged the Gweru into the Bulawayo Branch while Masvingo Branch, Highlands, Southerton and Mutare were merged into
Africa Unity Square Branch and Bindura Branch is housed
under the Avondale Branch.
The customers were transferred with effect from October 1.
