23rd June, 2019

CAVMONT BANK ANNOUNCES RESTRUCTURING OF ITS OPERATIONS

Cavmont Bank today announced that steps have been taken to optimize the performance of the Bank to ensure its long-term sustainability.

A major step in this process is the restructuring of the Bank which will consist of two main components, being the rationalisiation of the Branch network and the streamlining of Head Office support functions.

The rationalization of branches will be subjected to the following key changes i.e. branch mergers (Lusaka and Tazara); centralization of Branch Back Office operations (All branches) and branch closures (Industrial; Mpulungu; Mwense; Mufumbwe).

Customers of the Industrial branch can continue to access the ATM network as well as the other Lusaka-based branches. Clients of the Mpulungu, Mwense and Mufumbwe branches will continue to have access to local Cavmont Bank ATMs, make use of electronic and digital channels and they can access banking services from Mbala, Mansa and Solwezi.

Cavmont Bank has sought approval from the Bank of Zambia to ensure full compliance with statutory regulations and approval was granted for this restructure. Cavmont Bank has also met with the representative trade union, Zambia Union of Financial Institution and Allied Workers (ZUFIAW) and the Ministry of Labor and Social Security, to inform them of the intended restructure and the regrettable impact of it.

The details of the restructure was discussed with the Cavmont Bank Trade Union in advance. Communication regarding the bank's restructuring will in addition be sent to affected customers and employees of Cavmont Bank as well as to affected service providers.

"The Cavmont Bank Board of Directors and Executive Management Team have considered many options as part of the exercise to ensure the long term continuity of the Bank and is confident that the turnaround strategy will bear fruits in the short to medium term, in turn, repositioning the Bank as a more agile, competitive, customer-focused financial service provider that addresses the needs of its customers". Said Peet Van der Walt (Cavmont Bank CEO).

Cavmont Bank is committed to providing its customers with the best service experience possible and would like to assure all stakeholders that although such an exercise is a difficult one, it is a necessary one to ensure continued operational excellence.