Harare – First Capital Bank reported positive growth in profit and revenue for the half year ended 30 June 2019, highlighting that a significant part of the earnings reflects the revaluation of investments which includes the effect of change in functional currency.
The Bank’s profit grew by 400% to ZWL$68.1 million translating to 3.16 cents a share compared to ZWL$13.6 million recorded in the same period last year (0.63 cents per share).
Total income increased by 198% to ZWL$65.0 million from ZWL$40.5 recorded in the prior year as net interest income and total non-interest grew 3% and 110% respectively.
“The first half of 2019 saw the Bank implementing changes to respond to significant changes in the operating environment that included currency change,” Managing Director Samuel Matsekete said in a statement.
“At the same time the Bank had to execute a complex migration of the core banking information technology platform and ancillary systems which was completed within the first quarter.”
Interest income grew by 9% to ZWL$20.9 million compared to ZWL$19.2 million in the same period last year driven by growth in customer assets.
Gross loans and advances to customers grew by 91% to ZWL$283 million as at 30 June 2019.
“Of this growth, net new disbursements account for ZWL$36 million,” Mr Matsekete said.
The Bank’s net fee and commission income grew by 74% inclusive of the effect of exchange rate movements while deposits closed the period at ZWL$1 billion.
The Bank sustained a strong liquidity position with a ratio of 58%, which is significantly above the regulatory benchmark of 30%.
The total regulatory capital base closed at ZWL$229 million of which core capital was ZWL$174 million as at 30 June 2019.
Looking at the second half of the year, Mr Matsekete said even as the macroeconomic environment is undergoing significant changes, the Bank will continue to explore opportunities for growth, whilst also being conscious of the need to monitor and contain any new risks that may emerge.
“The second half will see the Bank extending an enhanced digital channel offering to customers,” he said.
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Raynold Mhotseka is a Journalism and Media Studies student at the University of Zimbabwe. He serves as a news writer at financial research firm, Equity Axis where he is currently on attachment. He can be contacted through the following email links, firstname.lastname@example.org and email@example.com.