…BoN says bank is liable to repay all depositors’ funds
Trustco Group Holdings Limited has exited the commercial banking market in the country, with the surrender of Trustco Bank Namibia’s (TBN) banking licence to the Bank of Namibia (BoN).
Chairman of the Board of Investment Committee at Trustco Group Holdings, Quinton van Rooyen, said the group decided to exit from investing in deposit-taking institutions in Namibia which represents less than 1% of its total investments.
“Trustco Bank Namibia Limited has opted to return its banking licence to the Bank of Namibia for cancellation, effective immediately. All depositors’ funds are fully secured and held by the Bank of Namibia. Our focus is now shifting towards non-deposit-taking financial services, where we see tremendous growth potential,” he said.
Van Rooyen highlighted recent strategic moves, including the 23 April 2024’s announcement of an intention to increase Trustco’s stake in Legal Shield Holdings Limited to 91.35% by acquiring an additional 11.35% interest for N$468 million.
“This pivot is exemplified by our recent transactions, which will significantly strengthen our position in Namibia’s insurance and real estate sectors—both of which are poised for substantial growth in the post-pandemic era,” he said.
This follows a June 24 agreement to repurchase a significant block of publicly traded shares on the JSE and acquire the remaining 8.65% equity interest in Legal Shield Holdings.
The acquisition completes full ownership of this key asset, which includes insurance operations and an extensive real estate portfolio of 2,473 sellable hectares across Namibia.
The Bank of Namibia on Friday, however, said although it takes note of Trustco’s decision and effected the process of winding down the bank as per the Act, depositors’ funds held by Trustco Bank remains its responsibility to repay.
“The Bank of Namibia reiterates that TBN holds depositors’ funds, and that it remains TBN’s responsibility to repay all depositors’ funds. The Bank of Namibia had previously issued a directive to TBN to ringfence depositor funds in a bank account held with a banking institution in Namibia. The Bank has directed TBN to present its deposit repayment plan to the Bank on Tuesday, 27 August 2024. The Bank wishes to assure members of the public that the Bank will endeavour to ensure that depositors are not negatively impacted by the decisions taken by TGH and TBN,” BoN Spokesperson Kazembire Zemburuka said.
This comes as BoN, in consultation with the Minister of Finance and Public Enterprises, Ipumbu Shiimi, last year temporarily suspended Trustco Bank’s authorisation to operate as a banking institution.
Trustco Group Holdings Ltd, headquartered in Windhoek, Namibia, manages a diverse investment portfolio spanning insurance, real estate, non-deposit-taking financial institutions, micro-finance, education and mining sectors.
