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Sunday, June 16, 2024
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First Capital Posts Strong HY Profit

First Capital Bank posted an adjusted profit of US$9,05m for the half year (HY) period to June which was supported by income growth driven by an improvement in the underlying business namely increase in customer base, growth in loan book and exchange gains.

The bank moved to the Victoria Falls Exchange in May adopting USD as the reporting currency.

During the period under review net interest income and net fees and commissions increased by 35% and 23% respectively to give total income of US$ US$32.1 million, 13% ahead of comparable period last year.

However operating expenses increased by 22% from US$16.6m in the first half of 2022 to US$20.3m in the period under review.

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.

‘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,” said Ciaran McSharry, First Capital Bank Limited, Managing Director.

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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.

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 has secured a steady stream of foreign lines of credit that have nurtured the growth of our client’s business in the current environment. We will continue to structure similar transactions to create a solid reservoir for drawdowns and leverage on opportunities that will contribute to key developmental projects that are key to the economy.”

The EUR12.5 million European Investment Bank (EIB) line of credit was close to being fully drawn during the period under review providing significant capital relief to medium sized corporate customers.

A further USD20 million line of credit has been mobilized with the African Export-Import Bank (Afreximbank) and is now at drawdown stage.

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