Trustco exits commercial banking portfolio in Namibia

Trustco Group Holdings Ltd, the parent company of Trustco Bank Namibia Limited (Trustco Bank), has announced its decision to exit its investment in its commercial banking portfolio, which accounts for less than 1% of its total investments. Trustco Bank Namibia Limited (“Trustco Bank”) has resolved to return its banking license to Bank of Namibia for cancellation, effective immediately. All depositors funds are 100% fully secured and held by Bank of Namibia.

Dr Quinton van Rooyen, Chairman of the Board Investment Committee of Trustco Group Holdings, commented on the decision: “In light of recent developments, Trustco has made the decision to exit from investing in deposit-taking institutions in Namibia. Our focus is now shifting towards nondeposit taking financial services, where we see tremendous growth potential. This pivot is exemplified by our recently announced transactions. On April 23, 2024, we announced our intention to increase our stake in Legal Shield Holdings Limited to 91.35% by acquiring an additional 11.35% interest for NAD 468 million. This move 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.

Furthermore, on June 24, 2024, we announced an agreement to repurchase a significant block of publicly traded shares on the JSE, while also acquiring the remaining 8.65% equity interest in Legal Shield Holdings. This completes our ownership of this key asset, which includes our insurance operations and an extensive real estate portfolio of 2,473 sellable hectares across Namibia.”

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