First Capital posts US$9,05m half year profits
Victoria Falls Stock Exchange (VFEX) listed financial services provider, First Capital Bank (FCB), posted an adjusted profit of US$9,05 million for the six months to June 2023.
The posted profit was supported by income growth at US$32,1 million in the period under review.
Ciaran McSharry, FCB managing director said; “This growth was driven by an improvement in the underlying business namely increase in customer base, growth in loan book and exchange gains.”
The bank added that it will continue 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 percent and 23 percent respectively as operating expenses increased by 22 percent from US$16,6 million in the first half of 2022 to US$20,3 million in the period under review.
This resulted in the cost to income ratio moving from 58 percent in June 2022 to 63 percent in June 2023.
“The adjusted total comprehensive income for the period, amounted to US$8,2 million for the six months to June 2023, 43 percent lower than the US$14,4 million total comprehensive income reported for the corresponding period in 2022,” the managing director continued.
FCB’s capital adequacy ratio remained strong, closing the period at 37 percent well above the regulatory minimum of 12 percent.
With a liquid assets ratio of 49 percent, they carried a comfortable buffer above the regulatory minimum of 30 percent representing capacity to underwrite more business.
Chief finance officer for FCB, 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’, said Kapanje.
The bank emphasized that its clients are central to all that they do including their ability to bring world class banking solutions that proffer viable economic growth.
McSharry added; “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.”
The board of FCB decided to declare an interim dividend of US$0.14 cents per share.
-ebusinessweekly
