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Company Profile
OUR BUSINESS Metropolitan Bank of Zimbabwe Limited is a registered commercial bank whose operations started on1 February 1999. The Bank has since grown to become an important player in the financial services sector in Zimbabwe. The core activities of the Bank comprise Retail Banking, Corporate Banking, Agribusiness, Treasury, International Banking and Corporate Advisory services. Metropolitan Bank of Zimbabwe Limited is headquartered in Harare, Zimbabwe with a total of ten branches nationwide and continues to grow. Metropolitan Bank of Zimbabwe Limited was the first bank in Zimbabwe to set up a Representative Office in Asia, incorporating Trade Centres whose main function is to coordinate trade between Africa and Asia. The establishment of the Metropolitan Bank Representative Office in Kuala Lumpur, Malaysia, gave the Bank an unrivalled platform to successfully negotiate International Lines of credit for large corporates in Zimbabwe. The Representative Office is strategically located in Kuala Lumpur, Malaysia. The Office is responsible for promoting products and services for companies in Africa, negotiating lines of credit and facilitating the creation of business and trade linkages between Africa and Asia. In July 2007, the regulatory authorities approved the acquisition of a 60% stake in Metropolitan Bank of Zimbabwe by Loita Capital Partners International. The acquisition by Loita will bolster the Bank’s existing service delivery capabilities, bringing both immediate and long term value to our customers and shareholders. Loita has the financial muscle to structure offshore credit facilities given its extensive continental presence. During the year 2006 Loita arranged US$50 million credit facility for the Reserve Bank of Zimbabwe and is currently in the process of finalising the documentation for the renewal of this existing facility. Loita Capital Partners International Limited is an investment banking firm focused on Africa. Loita provides services in the arrangement and funding of debt transactions; advisory services and capital-raising for equity transactions; bank management; correspondent banking; asset management; and other corporate-oriented financial services. Founded in 1992 by a group of international bankers, Loita has since grown into a unique pan-African group with a dedicated team of professionals from around the world. The group originates and completes transactions across Africa from a network of company and affiliated locations and relies on this local network to share and apply best practices, which take into account the reality and demands of our markets. Loita's competitive advantage derives from the ability to bridge the gap between the objectives of regional and international financial institutions and Africa's investment banking requirements. At Loita, an optimum environment has been created from which to originate and structure innovative solutions to those requirements.
Metropolitan Bank is an innovative and forward looking institution with a multi-skilled and diversely experienced human resource base. The Bank emphasises on the practical and lasting solutions to customer challenges in any economic environment. 1.1 Our Vision To be the leading financial services provider in the region through efficiency, excellence and innovative technology. 1.2 Our Mission To consistently exceed the expectations of our clients and our people, through the provision of high quality and superior financial services. Core Values Professionalism To always exhibit professionalism in all our transactions. Integrity To be honest and always abide by the business rules and regulations of any country we conduct business in. Service To always give excellent and unparalleled service that exceeds customer expectations. Innovation To be innovative in product designs. To continuously improve our products and services including delivery channels that ensure maximum efficiency. Fairness To always be professional and provide equal opportunities irrespective of gender, colour, religion or creed. Technology To continue being the market leader in terms of providing services through innovative technology. 1. Board Of Directors for Metropolitan Bank Of Zimbabwe Limited The Board is comprised of the following members: ¨ Mr. W. T. Manase Chairman¨ Mr. V. C. Jakachira Chief Executive Officer¨ Mr. G. Changunda Finance Director¨ Mrs. C. Mutunhu Executive Director: Human Resources & Administration¨ Mr. O. Matore Non Executive Director¨ Mr. O. Bvute Non Executive Director ¨ Mr. P. F. Chingoka Non Executive Director ¨ Mr. Y. Bazian Non Executive Director ¨ Mr. J. Chinyanta Non Executive Director ¨ Mrs. B. M. Kahari Non Executive Director ¨ Mrs. N. Ncube Non Executive Director Director’s Profiles ¨ Mr. Wilson Manase (Chairperson)He has over twenty five years experience in the legal profession. He holds a BL (Hons) and LLB degree from the University of IFE, Nigeria. He is a qualified legal practitioner registered with the Law Society of Zimbabwe. He is the founding member and senior partner of Manase and Manase Legal Practitioners, a leading Zimbabwean law firm. ¨ Mr. Virgil Jakachira (Chief Executive Officer)He has over nineteen years experience in banking. He holds a BSc. (Hons) Economics (Banking, Trade and Industry Finance) degree from the University of London and an MBA (Administration) degree from Heriot Watt University, Scotland. ¨ Mr. Garainashe Changunda (Finance Director)He has over ten years experience in banking, financial management and auditing. He is a qualified Chartered Accountant (CA). He holds a B.Compt (Hons) degree in Accounting from the University of South Africa. He served Articles of Clerkship with an international chartered accounting firm. ¨ Mrs. Constance Kamuriwo-Mutunhu (Executive Director)She has over twenty seven years experience in Banking, Tax and Business Consultancy. She was formerly a Partner at Ernst and Young. She trained in Advanced Auditing Techniques in Australia. In addition, she conducted training programmes on Tax matters for Corporate Executives. ¨ Mr. Oswell Matore (Non-Executive Director)He has over fifteen years experience in Banking, Accounting and Financial Management. He is a Chartered Accountant (CA). He served articles of Clerkship at Deloitte and Touche. He is currently the Group Finance Director of Zimbabwe Newspapers Private Limited (1980). ¨ Mr. Ozias Bvute (Non Executive Director)Mr. Bvute, is currently the Managing Director of Zimbabwe Cricket. He is responsible for the general business operations of the organisation including strategic planning and development, operations, financial, marketing and communications and human resources. He holds a Bachelor of Commerce degree specialising in Banking & Finance from University of Puna, India. ¨ Mr. Peter Farai Chingoka (Non Executive Director)He is an independent businessman; Chairman of the Zimbabwe Cricket Board and a member of the Executive Board of the International Cricket Council. Mr. Chingoka has held other board positions in both the private and public sectors. He has over thirty years experience in Marketing and Communications. ¨ Mr. N. Justin Chinyanta (Non Executive Director)Mr Chinyanta, a Zambian citizen, acts as the Executive Chairman of Loita Capital Partners International, based in Johannesburg, South Africa. He is a Barrister at Law with training at Law Practice Institute of Zambia supported by a Bachelor’s degree in law from the University of Zambia. Mr Chinyanta has over twenty years professional experience in commercial and investment banking within the African Continent, specialising in the Eastern And Southern regions of Africa. Prior to forming Loita Holdings Corporation, he held the position of Vice President in both Citibank and HSBC Equator Bank in Africa. Mr Chinyanta has been granted the Honorary Doctorate in Law from a USA University and is listed as one of the Nominated Expert Advisors of UNITAR’s (United Nations Institute for Training and Research) Training and Capacity Building Programmes in the Legal Aspects of Debt, Financial Management & Negotiation. ¨ Mr. Yousef S. Bazian (Non Executive Director)Mr. Yousef S. Bazian, a Jordanian citizen, acts as the Chief Financial Officer for Loita Holdings Corporation as well as overseeing the Corporate Finance division of the Group. Mr. Bazian holds a Bachelor’s degree in finance from Yarmouk University, Irbid, Jordan. Prior to forming Loita Holdings Corporation, he worked with Citibank and HSBC Equator Bank in Africa, rising to senior relationship management positions. He has also held senior management positions with Cairo Amman Bank in Jordan in addition to heading Arthur Andersen’s Corporate Finance division in Riyadh, Saudi Arabia. ¨ Mrs. Brenda Marie Kahari (Non Executive Director)Mrs Brenda Kahari, a Zimbabwean citizen, is a qualified legal practitioner registered with the Law Society of Zimbabwe and has over 30 years legal experience. She is the founding member and senior partner of B. M. Kahari Law Office, a firm which has become one of the leading law firms in Africa specializing in intellectual property and commercial transactions. Mrs. Kahari holds the following qualifications: · B. A. from the University of Dayton, USA· Juris Doctor cum laude from Howard University Centre, USA · LLM (International Law) from Georgetown University Law Centre, USA. ¨ Mrs. Ntokozo Ncube (Non Executive Director)Mrs. Ntokozo Ncube, a Kenyan citizen is currently the Finance and Administration Director for Oakland Media Services Limited, based in Nairobi, Kenya. She is responsible for the general business operations of the company including strategic planning and development, financial management, the human resources function, overall administration, the distribution function and logistics planning. Mrs Ncube is a qualified Chartered Accountant and holds a BACC degree from the University of Zimbabwe, ACIS Zimbabwe and an Accounting Science (Honours) degree from UNISA. SENIOR MANAGEMENT OF METROPOLITAN BANK OF ZIMBABWE LIMITED 2. PRODUCTS AND SERVICES Following the January 2009 Monetary Policy Statement the use of multiple currencies alongside the Zimbabwe Dollar is now permissible. As such banking services are offered in the following currencies: US Dollar, British Pound; Euro; South African Rand and Botswana Pula. The bank has the following key divisions:1. Retail Banking 2. Corporate Banking3. International Banking 4. Agri Business5. Treasury6. Corporate & Advisory Services RETAIL BANKING We offer the following Retail Banking Products:· Business Current Accounts· Business Savings Accounts· Personal Current Accounts· Personal Savings Accounts· Fixed Deposits· Small and Medium Enterprises (SME’s) loans Zimswitch Metropolitan Bank has joined the Zimswitch network, an added bonus for our individual customers. This means you will be able to transact at POS machines or ATMs displaying the Zimswitch logo anywhere in the country. There is no need to carry around cash. Business HoursFor the benefit of our corporate and individual clients all branches of the bank operate during the following hours:Monday to Friday – 08:00 – 15:00 hoursSaturdays – 08:00 – 11:30 hours Real Time Gross SettlementClients can receive and make payments via local inter bank transfers to and from their accounts. Zimra PaymentsClients can pay their dues to ZIMRA via inter account transfer or cash deposits, for the payment of VAT, PAYE, Import duties. Paynet The bank also offers the Paynet service to our corporate customers. This service is used for the transmission and management of electronic transactions, replacing the use of cheque forms, schedules and diskettes. There are currently three modules that corporate customers can select to use: · Salary Transfers· Corporate Payments· Direct Debits CORPORATE BANKING The Corporate Banking Division has products tailor-made to suit the clients’ needs. The division has a team of highly skilled professionals with the necessary expertise to handle the following:- - Fund raising
- Project finance
- Structured and Bridging Finance
- Long term financing schemes.
Fund Raising Finance may be required for start-ups, working capital for expansion, capital expenditure for procurement of equipment, business or companies buy-outs or buy-ins. The Metropolitan Bank team carefully assess your requirements before advising on the appropriate financing option to take. Project Finance Project finance is an integral part of the Bank’s activities. The bank has initiated innovative financial structures which have assisted clients to successfully embark on and conclude projects in an environment which over the last few years has called for increasingly diverse skills. Metropolitan Bank will continue to pursue this line of business in both the public and private sectors through provision of services, which include the following:-· Evaluation of both private sector and public sector recourse and non-recourse projects;· Structuring and raising of requisite capital, both locally and off-shore;· Identification of joint venture partners;· Access to international project finance expertise. Structured and Bridging Finance The team can come up with schemes that are tailored to suit different organisations. At Metropolitan Bank, a client is a partner; therefore, the Bank helps in the execution of ALL the transactions, big or small, all for mutual benefit. Overdrafts and Long-Term Finance Schemes Other than Overdraft facilities the bank also gives Revolving Credit Facilities for deserving organisations on a need basis. Other Corporate Banking Products Offered · Short Term Borrowing through Bankers Acceptances (BA's)· Overdrafts · Term Loans· Productive Sector Finance Facility· Offshore Financing INTERNATIONAL BANKING & Exchange control If you are a corporate entity that is importing or exporting, involved in the hospitality and tourism industry, an organisation that receives foreign currency donor funds or an individual, our International Banking team has the knowledge and skill to give advice on the current exchange control regulations regarding exports and imports and are able to assist with the following products and services: · Drafts· DStv Auto Reconnection subscription payments on behalf of Multichoice Zimbabwe· SWIFT Telegraphic Transfers· Foreign Currency Accounts for Corporates and individuals · Letters of Credit (LCs)· Execution of Export / Import documents – CD1s, CD3s, GSD, TR1s and TR2s.· Business Travel Allowance / Holiday Travel Allowance· Exchange Control Advisory· Travelex Cash Passport Card Other InformationWe have correspondent banking relationships with the underlisted international banks in order to facilitate processing of international trade payments.· ZAR – RANDNEDBANK SOUTH AFRICAJOHANNESBURG· ZAR – RANDTHE STANDARD BANK OF SOUTH AFRICAJOHANNESBURG· USD – UNITED STATES DOLLARCOMMERZBANKGERMANY· EUR - EUROCOMMERZBANKGERMANY· GBP – BRITISH POUND.COMMERZBANKGERMANY MET AGRI–BUSINESS UNIT The Met Agri-Business Unit offers financial and advisory services support to commercial farmers. Farmers are required to submit their detailed Project Proposal, together with financials, and our team will conduct a farm visit to assess the operations on the ground, in view of the proposal submitted. The team is also familiar with contract grower schemes. The support comes through various forms with respect to the following: - Irrigation
- Horticulture
- Summer & Winter Crops
- Beef & Dairy
- Pig & Poultry
- Floriculture
- Other Farming Activity Support
TREASURY The Treasury department offers investment options in the following currencies – US Dollar; British Pound; Euro; South African Rand and Botswana Pula. CORPORATE FINANCE AND ADVISORY SERVICES The Corporate and Advisory Services Department is responsible for the development of a suite of products to enable the Bank to grow its income base and diversify its products and income lines. This strategy includes the introduction of Corporate Finance, Mortgage Finance, Research Centre and Wealth Management. The implementation of this strategy within the Bank will increase product diversity, fuse in growth in products and diversify income lines. Metropolitan Bank Corporate and Advisory Services Department exists in the main to support businesses and other organizations at key stages in their development. It is staffed by a team of experts with a wealth of specialist experience in the following areas: - Initial Public Offerings
- Mergers and acquisitions
- Private placements
- Rights issues
- Valuations
- Privatizations
- Management Buyout
- Corporate financial strategies
RISK management Metropolitan Bank has embraced a total risk management concept that takes into account the bank wide portfolio of risks that are likely to be faced by the bank in the course of its operations and has put in place measures to minimise all risks. Corporate Governance Statement The bank is committed to the principles of openness, integrity and accountability as advocated in the Guidelines on Corporate Governance for Boards of Directors and Chief Executive Officers in Zimbabwe. All business dealings and relationships with all stakeholders are conducted with honesty and integrity and in accordance with generally accepted corporate practices. The Bank believes that it complies with all the principal provisions of good corporate governance, as is fully described below: Directorate & Executive Management The Board retains full and effective control over the Bank, meeting at least on a quarterly basis to review strategy, operational plans, operational performance, stakeholders’ communications and other material matters relating to the achievement of the Bank’s objectives. The Board is also responsible for monitoring of executive management. The majority of directors are Non Executive, bringing objective judgement to bear on issues of strategy and performance. The Chairman of the Board is an independent non – executive director. The composition of the Board is reflected above. Managerial levels of authority for lending, write offs, capital expenditure and disposal of assets have been established. However, decisions of a material nature are taken by the Board. The directors have access to the advice and services of the Company Secretary who is responsible to the Board for ensuring compliance with procedures and regulations. Directors are also entitled to seek independent professional advice about the affairs of the Bank, at the Bank’s expense if they believe that the course of action is in the best interest of the Bank. Specific responsibilities have been delegated to the Board committees with defined terms of reference. The current board committees are fully described below: Audit Committee The Audit Committee consists of three members all of whom are independent non executive directors. The committee meets at least four times a year to review the following: · The adequacy and appropriateness of the Bank’s accounting and internal control system. · The Bank’s strategy and budgets. · Efficiency and effectiveness in the utilisation of operational and capital resources. · The Bank’s financial statements and accounting policies. Loans Review Committee The committee is responsible for ensuring that: · Loans portfolio and lending function conforms to the approved lending policy approved and adopted by the Board. · Portfolio risk is properly assessed, identified and categorised in accordance with Reserve Bank of Zimbabwe regulations. · Potential losses are adequately and appropriately provided for in the correct accounting period. Credit Committee The committee’s terms of reference are: · Review and oversee the overall lending policy of the Bank. · Deliberate and consider loan applications beyond the discretionary limits of the Risk Management Committee. · Review lendings made by the Credit Risk Management Committee · Direct and monitor the quality of the Bank’s credit risk. Remuneration Committee The responsibilities of the committee are as follows: · Determine the policy framework of the remuneration of employees of the Bank. · Retain and attract the right calibre of management and staff by ensuring that they are appropriately rewarded for their contribution to the performance of the Bank and also to oversee the issue of key succession planning. · Determine the scope of pension arrangements and performance related pay schemes. Risk Management & Control The Board recognises that it is ultimately responsible for the process of risk management and the systems of internal control. The Bank has over the years developed a comprehensive risk management framework together with policies, procedures and guidelines as a management tool to accomplish stated risk management objectives and strategies. Credit Risk The Bank mitigates credit risk exposures attributable to cash and cash equivalents by entering into transactions with financial institutions with good credit ratings and after obtaining collateral for any credit agreement. Loans and Advances comprise a large number of customers that are spread over a wide range of industries and geographical locations. Management proactively addresses credit risk through a vetting process, which ensures that borrowers’ capabilities are subject to vigorous sensitivity analysis. Client credit worthiness is thoroughly assessed before a facility is granted. Interest Rate Risk The Bank is exposed to the risks associated with the effects of fluctuations in levels of interest rates on its financial position and cash flows. Managing interest rate risk in the bank is done through three analytical techniques namely: Gap AnalysisSimulation Duration These analytical tools contribute towards identifying the risk exposure as well as the sensitivity to interest rate risk. Liquidity Risk The Bank is exposed to liquidity risk. Senior management of the bank mitigate liquidity risk by measuring liquidity on an ongoing basis and examining the funding requirements under various scenarios including adverse conditions. Cash budgets are monitored to ensure that sufficient sources of funds are available. Currency Risk This is the risk of a mismatch between foreign receivables and foreign payables. This risk is managed through the application and daily monitoring of pre approved dealer and currency limits. Operating Risk Operating risk stems from any possible losses due to fraud, incompetence, systems breakdown and sabotage. The Bank manages these risks through insurance policies, checking works, training staff, segregation of duties, regular internal and independent audits. In addition, the Bank has operating manuals to guide staff on the execution of their duties. Market Risk Market risk is the adverse change in the market value of a portfolio of financial instruments that may result in losses to the Bank. Market risk exposures relating to dealing positions are housed and managed in the Treasury division within a framework of pre-approved portfolio limits. The Bank’s Risk Management department is responsible fore daily monitoring of limits and pricing, thereby ensuring that any errors or unauthorised transactions are promptly identified. Reputational Risk Reputational risk is the risk that the bank could lose its market share due to perception by the market that the bank is not conducting business in a sound manner. The bank has in place customer complaints monitoring procedures for ensuring continuous improvements in the bank’s service standards. Legal Risk Legal risk is the risk that a transaction or contract cannot be consummated because of some legal barrier, such as inadequate documentation, a regulatory prohibition on a specific counter-party and the non-enforceability of contracts such as netting and collateral arrangements in bankruptcy. The Bank’s legal department is mandated with the following: - Safe custody of all legal documents
- Maintains and approves all existing and new legal documents. This is done to ensure compliance with statutory laws and regulatory guidelines.
Capital Adequacy Capital Adequacy measurement is designed to assess the stability of a financial institution with emphasis being placed on the credit risk of a Bank vis-à-vis its capital base. As per Banking Regulations 2000, Capital supporting banking and trading activities is split into two classes namely core capital (tier 1) and supplementary capital (tier 2). The minimum total risk based capital ratio for a banking institution as per the regulations is 10%. The risk weightings depend on the credit, market and associated risks, the higher the exposures the more capital is needed. As at 31 December 2009 the Bank’s capital adequacy ratio stood at 56.2%. |
