A RECAPITALISED TN Bank listed on the Zimbabwe Stock Exchange (ZSE) Wednesday following its demerger from TN Holdings which will be renamed Lifestyle Holdings.
The bank recently received a capital injection of US$20 million from Econet Wireless Zimbabwe, giving the telecoms group a 45 per cent stake. Econet’s investment values the bank at US$44,4 million.
“We are excited about the demerger which will see TN Bank grow on the back of Econet’s strengths and stability,” TN holdings chief executive officer Tawanda Nyambirai said after the meeting.
“Products such as Ecocash and many others in the pipeline shall be key drivers of growth. This move anticipates the integration between telecommunication and banking that is now talked about globally.”
TN Holdings’ finance director George Nyashanu said the group’s revenues for the first six months to June 2012 are expected to be more than half the $54,5 million achieved during the full-year to December 31 2011.
Nyashanu projected net profit after tax for the group to be 51 per cent of the $3,5 million achieved year-end 2011 while operating costs are expected to surge 62 per cent driven by staff costs and borrowing costs.
“We expect the main contribution to revenue growth to come from our furniture division and TN Bank,” Nyashanu said.
“TN Asset Managment, TN Financial Services, TN Health Care and TN Medical, are all profitable, while TN Grill, TN Mart and TN Harlequin Luxaire Zambia, are expected to break even by year-end.”