TN to launch operations in Zambia

group was issued with operating licences for both entities early this year.
The Zambian operations would be launched on the back of a US$500 000 investment.
Group chief finance officer Mr George Nyashanu told an analysts’ briefing for the interim financial period ended June 30, 2011 in the capital last week that they have been operating in Zambia for the past six months.
“We were having regulatory problems but we have since been granted the licences by the authorities,” said Mr Nyashanu.
During the six months, the two operations generated about US$8 200.
TN Medical Fund Zambia will be the group’s first regional operation. TN Holdings operates Zimbabwe’s sole virtual bank and four other subsidiaries, namely TN Medical Benefits Fund (Zimbabwe), TN Financial Advisory Services, TN Asset Management and TN Harlequin.
TN Harlequin, the group’s furniture division born out of Tedco Holdings, which wound up and sold its interests to TN last year, is expected to establish its footprint in that territory in the near future.
The group last year embarked on a recapitalisation drive of its subsidiaries.
TN managed to secure about US$2,5 million from PTA Bank and an additional US$5 million from Afreximbank to recapitalise its operations.
During the period under review, revenues increased from US$7,26 million to US$36,6 mil-lion.
The group’s loan book soared to US$47,1 million compared to US$16,5 million in the comparable period. This represents a loan to deposit ratio of 70 percent, which Mr Nyashanu said the group would want to lower further.
In the first six months TN Bank total deposits were at US$49 million from US$22 million in June last year.
Mr Nyashanu said the group is targeting total deposits of about US$100 million by year end.
Like any other bank operating in Zimbabwe, TN Bank’s interest income was at 30 percent compared to 70 percent coming from non-interest income.
The furniture division is currently the group’s cash cow generating about US$18 million. It has grown its branch network to 43 countrywide, with a target of 45 branches by year end.
The group is expecting to close the current financial year with a revenue of US$50 million.
TN registered about 25 000 consumer borrowers after they introduced zero deposit schemes on furniture. However, the group said debtors collection rate stands at about 97 percent, meaning that only 3 percent of the accounts are in default.
Going forward, chief executive Mr Tawanda Nyambirai said TN would continue to develop asset classes as a tool to enhance customer confidence and provide universal access to banking services.
Mr Nyambirai said during the first half of next year TN will launch a Livestock Bank to tap into the unbanked rural market which has traditionally relied on cattle as wealth.
“Those who deposit their cattle with the bank would be issued with certificates of deposit or receipts with value in exchange for their livestock.
“The value of the cattle would be ascertained, while the issued certificate of deposit will create a pool of security,”‘ said Mr Nyambirai.
Zimbabwe’s national herd is estimated at about six million cattle, 60 percent of them owned by rural folk.
Putting an average price tag of US$500 per beast it means Zimbabwe is sitting on about US$3 billion worth of cattle.
“If I get 10 percent of that as an asset of a financial institution, it would be a healthy asset base,” said Mr Nyambirai.