Investrust Bank Zambia Faces Financial Crisis and Takeover

Investrust Bank Zambia has been facing a financial crisis, which ultimately led to a takeover. The bank's financial struggles began to unfold in 2019.

In 2019, the bank's assets were valued at K2.7 billion, but its liabilities stood at K3.3 billion, resulting in a significant negative equity position. This financial imbalance put the bank in a precarious position.

The bank's financial woes led to a takeover by the Bank of Zambia, the country's central bank, in an effort to stabilize the institution and restore investor confidence.

Investrust Bank is a well-established financial institution with a rich history. It was founded in 1995 and has since grown to become one of the leading banks in Zambia.

The bank's headquarters is located in Lusaka, Zambia's capital city. Investrust Bank has a strong presence in the country, with numerous branches across various regions.

Investrust Bank offers a wide range of financial services to its customers, including personal and business banking, loans, and investments.

The head office of Investrust Bank Zambia Limited is located in Ody's Building, along Great East Road, in Lusaka. This is the central hub of the bank's operations.

The main branch of the bank is situated in Investrust House, at 4527 and 4527 Freedom Way, in the city of Lusaka. This is the largest city and capital of Zambia.

The geographical coordinates of the bank's main branch are: 15°25'23.0"S, 28°16'46.0"E (Latitude:-15.423056; Longitude:28.279444). This makes it easy to find the bank on a map.

Investrust Bank Zambia Limited has a network of branches across the country, with several locations in Lusaka alone.

Here is a list of some of the notable branches:

The bank's branches are strategically located to cater to the needs of its customers across the country.

Investrust bank is a public company, which means its stock is publicly traded on the Lusaka Stock Exchange. This is a significant aspect of the bank's ownership structure.

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The majority shareholder of Investrust Bank is ZCCM Investments Holdings Plc, holding a staggering 71.4% of the bank's shares. This gives them substantial control over the bank's operations.

Bank of Nevis International Limited is the second-largest shareholder, owning 24.08% of the bank's shares. This indicates a significant level of foreign investment in the bank.

Other notable shareholders include Workers' Compensation Fund Control Board, Stanbic Bank Zambia Pension Scheme, and Justin Bevin Zulu, each holding 4.0%, 4.0%, and 3.0% of the shares, respectively.

The Bank of Zambia took management control of Investrust Bank Plc on 2 April 2024.

Investrust Bank Plc became insolvent, meaning its assets were worth less than its liabilities.

High overhead costs and accumulated losses over the years led to a negative capital position.

The bank's losses exceeded k11 million at the time of takeover.

Investrust Bank Plc underwent restructuring, including the divestiture of original shareholders.

The Bank of Zambia took control of Investrust when it was no longer deemed to be a going concern.

Efforts to ensure its ongoing operations failed, and the central bank stepped in to prevent asset devaluation, protect depositors, and maintain financial stability.

At the time of the takeover, Investrust's shareholding consisted of 74% ZCCM-IH, 24.1% Bank of Nervis International Limited, and 4.5% Others.

At the time the Bank of Zambia took control, Investrust's shareholding was made up of a significant stakeholder, ZCCM-IH, holding 74% of the shares.

ZCCM-IH was the largest shareholder of Investrust at the takeover.

Bank of Nervis International Limited held 24.1% of the shares, a notable presence in the company's ownership structure.

The remaining 4.5% of shares were held by others, indicating a diverse range of investors in the company.

The Bank of Zambia took control of Investrust when it was no longer considered a going concern, which means efforts to keep the bank running failed. This was a necessary step to prevent asset devaluation and protect depositors.

The bank's financial situation had become unsustainable, and the Bank of Zambia had to step in to maintain financial stability. This decision was made to prevent a bigger crisis from unfolding.

Investrust was no longer a viable business, and the Bank of Zambia had to assume control to protect the interests of depositors and prevent further losses. This move was aimed at stabilizing the financial system and ensuring that depositors' funds were safe.

Despite efforts to find a solution, the bank's financial woes persisted, leading to the Bank of Zambia's decision to take control.

Investrust Bank has a dedicated customer service team that is available to assist depositors with any concerns or issues they may have. They can be reached through various channels, including phone, email, and in-person visits to the bank's branches.

Depositors can also access their accounts online or through the bank's mobile app, allowing them to manage their finances and track their transactions in real-time. This level of accessibility has been a game-changer for many customers, making it easier for them to stay on top of their finances.

Staff at Investrust Bank undergo regular training to ensure they are equipped to handle a wide range of customer concerns, from account queries to complaints about service. This commitment to staff development has helped to build trust with customers and has contributed to the bank's reputation for excellent customer service.

As an account holder with Investrust, it's essential to stay informed about updates on takeover status from the Bank of Zambia.

You can find these updates through print and digital media, so be sure to keep an eye out for them.

If you're unsure about anything or have concerns, it's always a good idea to reach out to Investrust directly for clarification.

Investrust will be able to provide you with the most up-to-date information and guidance on the takeover process.

If you're an employee of Investrust, you're likely wondering what will happen to your situation after the takeover. Investrust employees (323 at the time of takeover) will have their situation addressed by the Central Bank.

The Central Bank will engage with the employees and the Ministry of Labour to determine the appropriate course of action based on legal provisions once the Statement of Affairs is completed.

The government has committed fiscal support of K1 billion to plug the estimated K850 million funding gap between assets and liabilities.

This significant investment will help clear 90% of depositor's accounts, granting them full access to their deposits.

The government's contribution is a crucial step towards resolving the takeover saga at Investrust Bank.

Investrust Bank offers a range of financial services, including savings accounts, loans, and investments.

Their savings accounts are designed to help customers grow their wealth over time, with competitive interest rates and flexible withdrawal options.

Investrust Bank's loan products include personal loans, business loans, and mortgage loans, catering to various customer needs.

Their loan interest rates are competitive, with some loans offering rates as low as 12% per annum.

Investrust Bank also provides investment services, allowing customers to invest in stocks, bonds, and other financial instruments.

Their investment team is experienced and knowledgeable, helping customers make informed investment decisions.

Investrust Bank's financial products are designed to be user-friendly, with online banking and mobile banking services available for customers to manage their accounts on the go.

Their customer support team is available to assist customers with any queries or concerns they may have.

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