Africa gateway

FNB takes over Finance Bank of Zambia

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13 September 2011

FNB Zambia, the local division of South Africa's First National Bank, is taking over the banking business, branches and employees of the Finance Bank of Zambia through the acquisition of selected assets and liabilities for an undisclosed sum.

The transaction will result in FNB Zambia becoming the fifth-largest financial services provider in that country, with a footprint of 55 branches in nine regions.

"This is a massive step forward in our drive to grow the FNB footprint," FNB chief executive Michael Jordaan said in a statement this week. "The 50 newly-added branches will increase FNB's representation in Africa by more than 50%.

"The acquisition represents a leap forward in FNB's investment in the continent and will bring our innovating banking channels to markets across Africa."

Upgrading branches, infrastructure

As part of the transaction, FNB Zambia has agreed to maintain the physical footprint of Finance Bank of Zambia and offer employment to all the staff.

FNB also expects, over time, to invest heavily in upgrading the branch and ATM infrastructure, improving connectivity and enhancing the overall customer proposition.

"We opened FNB Zambia in 2009 and have organically grown our network to five branches and 20 ATMs," said FNB Africa CEO Danny Zandamela.

"This transaction launches FNB Zambia into a market-leading position, and represents a strong platform from which we can expand our innovative banking channels such as cellphone banking for the market."

SAinfo reporter