Montreal, Quebec, June 24th, 2011– Hilbroy Advisory Inc. (DeutcheBörse: 2H0) Hilbroy Advisory Reports: Individuals and corporate are forking out between US$20 and US$40 monthly in bank charges, far above regional averages of below US$25, as banks milk account holders through high charges to boost their income and support the infrastructure they put in place when the economy was faring better.
Figures obtained from different banks show that an individual is charged between US$2 and US$8 for a single withdrawal while companies pay up to US$10 to be issued with a draft/RMO. Charges for withdrawals increase depending on the amount being withdrawn.
In South Africa, Botswana, Zambia and Mozambique the average charge or a withdrawal is US$3 dollars.
Telegraphic transfers cost between US$15 and US$30 for both corporate and individuals depending on the amount involved. The same amount is charged for deposits received by telegraphic transfer. The regional average for such transactions is US$14.
However, Bankers Association of Zimbabwe says local bank charges were in line with regional charges.
Some analysts’ said the charges were outrageous and reflect the structural inefficiencies that banks have carried over from the hyper-inflation environment.
Banks are said to be sitting on deposits that from the core business perspective, cannot generate sufficient interest income to cover their operational expenses. The net interest margins, in the range of 2%-7% are too thin especially for small banks that sit on deposits below US$150 million.
Local banks are also charging as much as US$10 for a single deposit. The average regional charge for the same transaction is US$7.
Some banks are not charging for maintaining clients’ accounts, but others are levying between US$2, 90 and US$5. Corporates are being charged between US$8 and US$12 per month for monthly account maintenance. FCA inter account transfers cost between US$1 and US$5 depending on the bank for both individuals and corporate.
Service charges for salary processing tariffs cost between US$1, 50 and US$4 per entry for manual salary payments. Unclaimed salaries cost between US$4 and US$7.
Companies are being charged between US$7 and US$10 per payroll for late salary submissions. Most banks have not set a charge for intermediated money transfer tax. Facility negotiation fees for companies cost 5% of the value of the overdraft or loan. Between US$4 and US$8 is charged for stop orders.
Bankers interviewed said most banks in the region do not use bank charges as a main source of income, a situation which is prevalent in Zimbabwe.
In South Africa for example, high bank charges are levied on people who withdraw huge amounts of cash as a way of discouraging people from withdrawing large amounts of cash.
Accounts closed within six months are attracting a fee of between US$18 and US$25, while reactivation of a dormant account costs between US$20 and US$25. Services for bonds guarantees, securities and indemnities and bills range between 5% and 10% of the amount at hand.
Charges for letters of guarantee, and guarantees are between 4% and 6% of the amount involved. Letters of credit for foreign inward cost US$75 per credit. Foreign outward for commercial banks cost 10% of the amount being transacted.
About Hilbroy Advisory Inc.
Hilbroy Advisory Inc. is a Canadian based advisory and consultancy services company founded in 2000. Our Company provides publicly traded and private companies, institutions and individuals with a series of advisory services enabling these companies to fully reach their corporate objectives and potential.
Our specialists will customize a service package that includes reviewing, identifying and recommending a series of specific action and tasks that help their clients’ management decisions when seeking
• Go Public strategy,
• Debt and or equity financing
• Identify prospective investors
• Hire investor relations firm
• Cross listing decisions
• Planning road-shows and promotional campaigns.
Hilbroy Advisory has established numerous international relationships over the years with Broker Dealers, Hedge Funds, Institutional Investors, High net worth Investors as well as with investor relations firms and consultants. These relationships are made available to all Hilbroy clients and our team will manage the relationships from introduction to post financing activities.
Contact:
Jean François Amyot
HilbroyAdvisory, Inc.
1400 rue Begin
Montreal, QC H4R 1X1
[email protected]
www.hilbroyadvisory.com
Tel: 514-334-3131
Important Information About Forward-Looking Statements
All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as “anticipates”, “believes”, “could”, “expects”, “intends”, “may”, “should” and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.
A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.
