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First Capital Banks On Consumer Appetite for Credit

First Capital Bank say it is currently pursuing additional lines of credit to meet the growing appetite for credit in the local market.

This follows a substantial draw down of finds from the lines of credit secured during the past year already channeled into various sectors of the economy.

The EUR12.5 million European Investment Bank (EIB) line of credit was 81 percent fully drawn during the period year ended December 2023 providing significant capital funding relief to medium-sized corporate customers.

A further US$20 million line of credit has been mobilized with the African Export-Import Bank (Afreximbank) with US$6 million already drawn down as at 31 December 2023.

“The Bank continues to engage various financiers for additional lines of credit with African Development Bank and Trade Development Bank at varying stages,” said the bank in its financial results statement.

“Our listing on the Victoria Falls Stock Exchange further consolidates our commitment and positions the Bank strategically to attract high quality funding and make a lasting contribution to the growth of the economy.”

The Bank’s consolidated adjusted profit after tax for the year ended 31 December 2023 amounted to US$15.4m, 26 percent higher than US$ 12.2m posted in the corresponding prior year period.

The Bank’s core capital increased by 3 percent from US$50.9m as of 31 December 2022 to US$52.5m as at 31 December 2023.

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This level is above the regulatory minimum of US$30m with a comfortable margin of safety being maintained.

The Bank’s capital adequacy ratio remained strong, closing the period at 28 percent which is well above the regulatory minimum of 12 percent

With a liquid assets ratio of 52 percent, the Bank carried a comfortable buffer above the regulatory minimum of 30 percent representing capacity to underwrite more business.

“Our aim is to reduce cost-to-serve and also bring transactional convenience through continuous innovations and smart partnerships with global brands. Our approach began with the enhancements of existing platforms to significantly improve the service experience and bring more relevant options,” the bank said.

This included initiatives such as USSD upgrade, ZIMRA on mobile, USD POS acquiring, USD denominated bill payments, security enhancement through FCB secure, Zinara licensing in-branch and strategic alliances with global brands such as Emirates.

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