Investrust Bank Board Chairman Dr. Jacob Mwanza has retired from the role paving way for Peter Banda who has since been appointed as his replacement, according to a statement issued by the Bank.
“In accordance with Section 3.59 of the Lusaka Securities Exchange Listing Rules, the Board of Directors of Investrust Bank Plc (“the Board”) wishes to announce the retirement of Dr Jacob M. Mwanza as chairperson of the Board effective 31st July 2019”, read the SENS announcement issued by Brian Msidi, Company Secretary on behalf of the Board, on 9th August 2019. “Furthermore, the board would also like to announce the appointments of Mr. Peter H. Banda as the new chairperson and Dr. Womba K. Zulu as a non-executive director”.
Dr. Mwanza has held the position of Board Chair for over 3 years through a turbulent period for the bank that has continued to seek profitability. According to an extract from 2018 annual report Investrust Bank Plc (“Investrust”) recorded a 19.9% decrease in net interest income to K48.91 million during the year ended 31st December 2017 (2016: K40.82 million). Total operating expenses increased marginally by 1% on a year-on-year basis to K149.65 million (2016: K148.23 million).
Although the Board wishes to thank Dr Mwanza for his service to the Bank and wishes him well in his future endeavours, it is clear that incoming Chairman Mr Banda and non-executive Director Dr Zulu enter a board room searching for answers.
Following their last Annual General Meeting held at Radisson Blu hotel on the 31 July 2019, anxiety for growth in earnings was evident as some shareholders voiced their concern on the protracted capitalisation and return to profitability of the bank, according to sources who attended the event.
One of the last major capital raising initiatives the then Jacob Mwanza led board pursued was the Mandatory Offer in which ZCCM IH offered to purchase some or all of the shares at K12 per shares of minority shareholders.
Despite the share price of the bank’s listed security remaining flat during most of Dr. Mwanza’s tenure at K13.50 per share, the share price lost 11.11% of its value dropping to K12.00 in September 2018.