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Zim operations drive FMB Capital

First Capital bank

Profit-after-tax at the regional banking outfit, FMB Capital Holdings rose by 93% to US$25,2 million during the half-year ended June 30, 2022, the firm said on Monday, citing robust profitability across its southern African operations.

FMB Capital has a strong presence in Zimbabwe through the Zimbabwe Stock Exchange listed First Capital Bank, which also reported strong growth during the period.

“The interim period of 2022 followed through strongly on concerted efforts from 2021, and saw the group’s banking operations in Botswana, Malawi, Mozambique, Zambia and Zimbabwe all recording profit growth,” Jaco Viljoen, FMBCH group managing director said.

“Our group has generated growth driven by our country operations’ strong performance, all of which recorded increased profits over the six-month period, despite the macro-economic challenges caused by global events. Our financial position is certainly much stronger and we achieved this by building on the strength of our strategic positioning across the Sadc [Southern African Development Community] region, where economic activity has increased post the COVID-19 pandemic,” the FMB boss noted.

He said the rebound during the review period was driven by a expanding corporate banking deal pipelines and improved cost efficiency.

The firm’s net interest income increased to US$52,1 million during the review period, compared to US$44,2 million during the prior comparable period.

Non-funded income rose to US$43,7 million from US$32,5 million in 2021, the report noted.

It said total income grew to US$95,7 million from US$76,7 million in June 2021 while operating expenses increased marginally to US$48,5 million from US$46,3 million.

Total assets increased from US$1,22 billion to US$1,29 billion, the report added, noting that total income earning assets remained steady at 67% of total assets during the period.

The FMB boss added that average gross yields improved from 16,3% in June 2021 to 17,3% during the review period.

“The group has made pleasing progress with its retail solutions offering,” Viljoen said.

“Further, deposit liabilities across the group’s five banking operation countries grew by an aggregate 36% to US$897 million compared to June 2021 (US$658 million). As a result, the group closed the interim period with a loan to deposit ratio of 70% compared to 78% in June 2021, signifying productive deposit utilisation. The group’s cost to income ratio has improved to 51% from 60% against the same period last year and 58% for the 2021 full year. Business level cost management, as well as the benefits of the Mauritius based banking information technology and operations shared service centre (SSC), have assisted in maintaining flat operating costs period while total operating income grew by 25%. The interim performance is reflective of our new mission — Growth is Our Business — in which we continue to put our customers’ needs at the heart of our business,” the FMB boss said.

“Our personalised services and products have enabled us to solve problems for our customers, driving our operating performance growth. In the second half of the year, we will continue working on further enhancements of our digital offerings to cater for our customers’ evolving banking needs,” added Viljoen.

The FMB board approved an interim dividend of US$3,687 million, representing 0,15 US cents per share.

This was an increase from US$1,966 million during the same period last year.

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