HARARE, February 24 (The Source) – AfrAsia Bank Zimbabwe on Tuesday surrendered its operating licence, marking the end of an iconic institution previously known as Kingdom Financial Holdings (KFH) and a poster child of Zimbabwe’s liberalised financial services industry in the 1990s.
Below is a timeline charting the bank’s history.
1995: Kingdom Securities Limited (“KSL”) was registered as a Discount House under the Zimbabwe Banking Act (Chapter 24:01). Kingdom Asset Management (Private) Limited (“KAM”), and Kingdom Stockbrokers (Private) Limited (“KSB”), all duly registered as a discount house, asset manager, and member of the Zimbabwe Stock Exchange (“ZSE”) respectively.
1997: Kingdom Bank Limited was established as an accepting house under the Banking Act.
1998: KAM was registered as a Manager of Collective Investment Schemes and subsequently commenced the trading of unit trust funds.
1999: Kingdom Securities Holdings Limited (“KSHL”) merged with DCZ Holdings Limited (registered as a discount house under the Banking Act in 1954) and listed on the ZSE. KSHL’s name was changed to Kingdom Financial Holdings Limited (“KFHL”).
2000: KBL converted its Merchant banking license to that of a commercial bank.
2001: Kingdom initiated regional expansion strategy and acquired 25.1% stake in FDH Financial Holdings (Malawi) (“FDH”). The stake was subsequently increased to the current 38.15%.
2001: The micro finance business was commenced under MicroKing Finance (Private) Limited.
2002: Kingdom Bank Africa Limited (“KBAL”) was licenced by Bank of Botswana as the first offshore bank in the International Financial Services Centre. The Group currently has a combined 35.7% shareholding in KBAL.
2007: Kingdom Financial Holdings Limited merged with Meikles Limited, Tanganda Tea Company Limited and Cotton Printers (Private) Limited to create Kingdom Meikles Africa Limited.
2009: When it became apparent that the anticipated benefits of the merger were unlikely to materialise, the shareholders approved the demerger of KFHL through a structure involving a dividend in specie. The demerger was finally completed in 2011.
2011: KFHL shareholders approved a recapitalization plan involving mainly rights issue and a private placement.
2012: A private placement was completed resulting in AfrAsia Bank Limited of Mauritius owning an ultimate shareholding of 35 percent of AKZL. The Group then rebranded to AfrAsia Kingdom Zimbabwe Limited to reflect the co-existence of the AfrAsia and Kingdom brands.
2013: AfrAsia Bank Mauritius takes control of KFH after buying out Chanakira and renamed it AfrAsia Zimbabwe Holdings.
2015: RBZ cancels licence, citing the banking institution is no longer in a safe and sound condition in that the institution is grossly undercapitalised and is facing chronic liquidity challenges.