FMBcapital overturns loss to US$21.3 million

Says the performance of the Zimbabwe operations was the most impressive success story for the period

  • Total income improved by 19% to US$127.3 million
  • Total assets grew to US$1.07 billion
  • Focusing on optimising cost structures, increase liquidity, and strengthening balance sheet

FMBcapital Holdings Plc (FMBCH), the holding company of First Capital Bank operations in Africa reported a robust 2020 full-year financial performance overturning prior-year loss by 215% as the business made significant progress in growing and optimising operations.

Net profit for the period rose to US$21.3 million from a loss of US$18.6 million in 2019. Net Interest for the Group grew by 18% to US$65,7 million. Non-Funded Income rose by 21% to US$61,5 million from US$50,7 million in December 2019.

Total Income improved by 19% to US$127.3 million whilst Operating Expenses decreased by 7% to US$79.7 million.

FMBCH Interim Group Managing Director Mahendra Gursahani said: “The company’s financial performance in 2020 was robust as we made significant progress in growing and optimising our Group’s operations. Despite the challenges from the Covid-19 pandemic and flow on to a slowdown in economic activity, we remained not only open for business but continued with even greater resolve to offer and deliver new and innovative digital and customer service enhancements.”

Mr Mahendra noted that the performance of the Zimbabwe operations was “the most impressive success story for the period” where improved economic stability in the country, coupled with the Group’s focused business growth interventions, saw the negative performance figures of 2019 (US$29.5 million loss) transforming into a profit of US$4.7 million in 2020.

“We are making good strategic progress through disciplined emphasis on our Performance, People, and Purpose priorities. Our expectations for the Group in 2021 are positive although we remain cautious of the Covid-19 pandemic which has caused economic uncertainty, not only in the markets that we operate in but globally as well.

“Our focus as a Group remains on delivering premium value for our customers, employees, and shareholders. We will continue to innovate and evolve our operating model to be more flexible and provide our clients with a banking experience that truly meets their financial aspirations. We, therefore, look forward to executing at an encouraging pace and momentum as we optimise our cost structures, increase our liquidity, and strengthen our balance sheet, adding value to our Group and valued stakeholders,” said Mr. Mahendra Gursahani.

FMBCH subsidiary banks are located in Botswana, Malawi, Mozambique, Zambia and Zimbabwe.

It’s total Assets increased by 2% during the period under review from US$1.05 billion in 2019 to US$1.07 billion.

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