THE adoption of the multi-currency regime helped restore price stability and forced stronger fiscal discipline. Price and exchange liberalisation increased efficiency, boosted output, and encouraged renewed capital inflows.
The economy is now on a recovery path and is poised for growth although there are enormous challenges which still lie ahead.
The prospects of an economic recovery require that companies reposition themselves to take advantage of opportunities that are expected to arise.
TN Bank had a core-capital of US$13,1 million as at December 31 2011. This capital level already met the Reserve Bank’s current capital requirement of US$12,5 million. Therefore, the capital raising was not for the purpose of meeting regulatory requirements. Rather, it was strategic.
In addition to TN Bank Ltd’s alignment with TN Harlequin Luxaire Ltd, much brighter growth prospects exist from an alignment of TN Bank Ltd with Econet, the largest mobile phone company in Zimbabwe that boasts of approximately six million subscribers. The successful partnership between Econet and TN Bank on the Ecocash product can be replicated in micro and consumer lending initiatives, airtime financing, cell phone financing, some savings products and various other initiatives that are to the mutual benefit of both TN Bank Ltd and Econet.
Going by the capitalisation levels disclosed by the Reserve Bank governor in his February 2012 Monetary Policy Statement, the injection of additional core-capital of US$20 000 000 into TN Bank has increased the core- capital of TN Bank to levels above US$32,5million, thus repositioning TN Bank among the top five largest banks in Zimbabwe by core-capital. Such growth in core capital is well complemented by TN Bank’s expansive branch network that places it among the top three banks in Zimbabwe by geographical footprint. The board expects such repositioning to be followed by growth in deposit base and asset base as the public’s confidence in TN Bank will increase.
Rationale for change of name of TN Holdings Ltd
To avoid the confusion of the use of name in the market TN Holdings changed its name to Lifestyle Holdings. This name is in line with the strategy of the demerged Lifestyle Holdings Ltd group of offering Lifestyle products.