LEADING financial services provider, First Capital Bank (FCB) has seen profits soar by 168% in the year’s first half period on the back of securing additional US$20 million credit lines to support local industry.
Presenting the group’s performance ended June 30 2024, FCB chairperson Patrick Devenish said the period witnessed a strong performance for the group.
“The Bank posted a profit of ZWG155,5 million equivalent to US$11,5 million for the six months to June 2024, being a 168% improvement from the ZWG equivalent of ZWG58 million posted in the corresponding period in 2023.
“This translates to Earnings per Share of ZWG7.19 cents (US$0.53 cents), up from ZWG2.70 cents (US$0.20 cents),” he said.
Devenish said the bank’s capital has always been maintained above the regulatory minimum of US$30 million whilst closing the period at US$59,2 million with a capital adequacy ratio closing at 31%, representing capacity to underwrite more business.
“Similarly, the liquidity ratio was maintained above the regulatory threshold of 30%, creating capacity for the Bank to manage market shocks,” he said.
During the period total deposits closed at ZWG1, 9 billion (US$137.1m) as at 30 June 2024, 12.5% higher than ZWG1, 7 billion (US$123.1m) reported on 31 December 2023.
FCB attributed the trend to a reflection of a rebound after balances had marginally come off in the first quarter against the backdrop of an unstable currency framework which experienced relief after the monetary interventions announced by the central bank at the beginning of the second quarter.
Foreign currency deposits contributed 83% of total deposits, reducing from 87% at 31 December 2023, reflecting early signals of the resurgence of local currency activity on the market.
Loan quality remained satisfactory, with the nonperforming loans ratio having improved from 8% to 3% over the six-month period. A loan loss ratio of 1.4 was recorded.
“In early 2024, First Capital Bank secured an additional US$20 million line of credit from the African Export-Import Bank (Afreximbank). This facility will support foreign currency generating business, with a focus on small to medium enterprises and midcap companies in Zimbabwe.
“The African Development Bank (AfDB) approved a combined US$15m Trade Finance Package, comprising a US$7.5m Trade Finance Transaction Guarantee and a US$7.5m Trade Finance Line of Credit,” added FCB. — NewZimbabwe
