Zimbabwe: First Capital Bank’s Operating Income Up $1,4 Billion

Zimbabwe’s leading financial services provider, First Capital Bank (FCB) has seen operating income surging by $1,4 billion on the back of increased loans and transactional income.

Presenting a trading update, the bank’s company secretary, Sarudzayi Binha said sound financial strides were made during the period.

“The Bank’s year to date inflation adjusted operating income increased by $1,4 billion from the second quarter to $3,7 billion in the third quarter whilst in historical terms, the increase was $1,4 billion to $3,6 billion,” she said.

The growth was attributed to both increase in loans and transaction income realised during the reporting period.

“In inflation adjusted terms, year to date operating expenses increased by $1billion to $2,6 billion while in historic cost terms, the increase was $692 million to $1,9 billion,” she said .

Year to date operating profit excluding investment property gains and tax increased by $814 million to $1,5 billion in inflation adjusted terms whilst in historic cost it increased by $674 million to $1,6 billion.

During the period, profit after tax was $393 million and $1,3 billion in historical terms.

Customer deposits grew by $2,8 billion to $12,6 billion driven by growth from local and foreign currency depositors with foreign currency constituting 46 % of the total deposits.

Loans grew by $1,3 billion to $6,1 billion and the loans book continued to perform well with non-performing loans at 0,19 % of the loan book.

First Capital Bank is affiliated to FMB capital Group, the Mauritius based holding Company, which has a 38.6% shareholding in First Capital Bank, with the remaining shares being held by local and international investors.

The First Capital Bank also has banking operations in Zimbabwe, Malawi, Zambia and Mozambique.