First Capital Bank appoints EY as new auditor, shares flat

First Capital Bank (FCB) on Wednesday appointed Ernst & Young, Chartered Accountants (Zimbabwe), as its new auditor, replacing Deloitte & Touche Chartered Accountants after five years of service.

This action comes shortly after Deloitte Africa’s recent withdrawal from the country. Later, following a management buyout, Deloitte Zimbabwe changed its name and is currently known as Axcentium.

At the company’s annual general meeting, shareholders approved the remuneration of US$236 338 paid to Deloitte & Touche (Zimbabwe) for the past audit.

“External auditors, Deloitte, Zimbabwe, completed their five-year auditing cycle in 2023,” FCB chairman Patrick Devenish told shareholders attending the virtual annual general meeting.

“I would like to thank them for the diligent manner in which they acquitted themselves during their tenure and wish the local team access to the rebranding as Axcentium,” FCB said.

The AGM endorsed US$102 000 paid as directors’ fees for the past year.

Shares of the financial institution closed the week’s opening session flat at US$0.0300.

Devenish added that the company has entered a closed period ahead of the upcoming half-year financial results, during which no additional updates will be shared until the financial results are publicly announced.

This comes after the board of directors of the African Development Bank Group, has approved a US$15 million trade finance package for First Capital Bank (FCB) in Zimbabwe to help bolster intra-African commerce in line with the goals of the Africa Continental Free Trade Area.

The package, comprising a US$7,5 million trade finance line of credit and a US$7,5 million transaction guarantee, is expected to catalyse about US$146 million in trade over the next three years.

The line of credit will provide the much-needed hard currency financing to support FCB to close its trade finance gap and expand its trade finance support for SMEs and local corporates in Zimbabwe, a transition country.

The transaction guarantee will provide a 100 percent guarantee to international confirming banks (CBs) for the non-payment risk taken on FCB’s trade finance transactions conducted on behalf of SMEs, and women-led businesses. The approval came on 30 April.-eusinessweekly