First Capital Bank’s profit surges 100%, issues positive outlook amid growth in deposits

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  • Total income grew by 58% to ZWL1.9 billion
  • Local and foreign currency deposits grew by 73% and 3% respectively
  • The Bank confident of surpassing the Q3 performance

HARARE – First Capital Bank has reported a trading income in inflation adjusted terms of ZWL1.9 billion for the third quarter which ended Sept. 30, representing an increase of 58% compared with ZWL$1.2 billion achieved in the corresponding period in 2019.

The period under review was characterized by exchange rate and price stability while the easing of lockdown enabled various sectors of the economy to start operating normally, resulting in increased transaction volumes.

According to the Bank’s Secretary, Violet Mutandwa, the increase was largely driven by ZWL657 million increase in local currency loans, together with an increase in transactional volumes and inflation adjusted price increases.

She said inflation adjusted after tax profit increased by 100% from ZWL188 million a year earlier to ZWL376 million. In historical cost terms, operating profit increased by 450% from ZWL57 million to ZWL314 million.

“This growth in profit exclude property revaluation impact”, she said.

Local currency deposits grew by 73% from ZWL1.5 billion to ZWL2.6 billion resulting in an 83% increase in loans from ZWL779 million to ZWL1.43 billion. Foreign currency deposits increased marginally by 3% from USD61 million in the same period last year to USD63 million during the period under review whilst foreign loans reduced significantly due to repayments.

Meanwhile, operating cost increased by 69% in inflation adjusted terms from ZWL766 million to ZWL1.3 billion.

Looking ahead she said the Bank will most likely surpass third quarter performance given the growth in deposits.

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