First Capital Bank, a subsidiary of FMBcapital Holdings Plc (FMBCH), has released their 2023 interim results which reflect sustainable growth within their business operations. The Bank’s performance shows their agility, in the face of a challenging macroeconomic environment, supported by a sustainable banking model that continues to create shareholder value.
The Bank posted an adjusted profit of US$9,05m which was supported by income growth at US$32.1m over the six months to June 2023. This growth was driven by an improvement in the underlying business namely increase in customer base, growth in loan book and exchange gains. First Capital Bank Limited continues to actively pursue cost optimisation strategies to manage their overall cost base.
During the period under review net interest income and net fees and commissions increased by 35% and 23% respectively. Operating expenses increased by 22% from US$16.6m in the first half of 2022 to US$20.3m in the period under review. This resulted in the cost to income ratio moving from 58% in June 2022 to 63% in June 2023. The adjusted total comprehensive income for the period, amounted to US$8.2m for the 6 months to June 2023, 43% lower than the US$14.4m total comprehensive income reported for the corresponding period in 2022.The Bank’s capital adequacy ratio remained strong, closing the period at 37% well above the regulatory minimum of 12%. With a liquid assets ratio of 49%, the Bank carried a comfortable buffer above the regulatory minimum of 30% representing capacity to underwrite more business. Shareholder returns were attained seeing them declare an interim dividend of US$0.14cents per share.
Mr Ciaran McSharry, First Capital Bank Limited, Managing Director said, ‘Our customers and clients are central to all that we do. We are motivated by their aspirations and our ability to bring world class banking solutions that will proffer viable economic growth. Our robust service delivery framework is designed to not only provide market relevant solutions but to uniquely provide convenience, efficiency, and increased security. This has seen the bank continue to accelerate innovation through relevant digital enhancement on Point of Sale, gold card and one-stop-shop bancassurance capabilities among others.’
First Capital Bank was the first bank to list on the Victoria Falls Stock Exchange in May this year. This was part of their efforts to unlock value for shareholders whilst providing great opportunities for investors. Through a memorandum of agreement with the VFEX, the Bank has offered to lend its technical capacity in solutioning for the deepening of capital markets. This includes providing custodial, clearing and settlement facilities for the different market opportunities in a safe and secure manner.
Chief Finance Officer for First Capital Bank, Mr. Fanuel Kapanje said that providing funding to the productive sectors of the economy remains a key focal area for them. ‘Our strategic partnerships and mutually beneficial relationships with other global financial institutions.