Fruitful financial year for FMB Holdings with reco...

Fruitful financial year for FMB Holdings with recorded 51% growth rate

FMB Capital Holdings Optimistic About Continued Growth Through Innovative Strategies

FMB capital Holdings PLC reported impressive performance for the year ended 31 December 2022 in its banking operations recording US$61.2 million, up 51% on the 2021 year.

Net interest income for the year grew by 13% and total non-interest income by 8%, resulting in total operating income of USD 191.6 million, a growth of 10% year on year.

Speaking at the Annual General Meeting of Shareholders, FMB capital Holdings Group Chief Executive Officer Mr Jaco Viljoen stated that the results demonstrated a positive shift based on the Group’s strategic thrust, which leveraged on each country’s strength.

“When I assumed the role of Group CEO in January 2022, my top priority was to reinforce our group strategy, with an underlying vision to amalgamate a regional banking group under a strong brand, focused on delivering relevant products and appropriate solutions to the customers we serve.

“The Group’s achievements are attributable to the hard work and efforts of the team, which has seen growth in the past year with internal appointments as well as the onboarding of several talented senior leaders, and this has seen the countries coming together as one team and supporting each market’s local agendas,” Mr Viljoen said.

Speaking on the financial performance, the Group Chief Finance Officer, Mrs. Mythri Sambasivan-George said customer numbers grew by 24% to over 555 000, demonstrating the Group’s commitment to providing quality services that meet clients’ needs.

“The Group delivered strong financial results, closing with a healthy balance sheet, driven by substantial customer growth due to their faith and belief in us. This was enabled by a passionate and dedicated team across our six countries, deepening our brand affinity and supported by like-minded partners.

"The results for the year reflect quality earnings in line with our growth trajectory.

“Net Operating Income grew to US$192 million compared to US$173 million in the previous period. Total expenses were contained through process standardisation and simplification, cost

control and operational efficiency, staying flat at US$96 million for the year and resulting in an improved cost to income ratio of 50%.

“Net impairment expense (charge and write-offs net of recoveries) in relation to underlying average net customer advances was 0.77% for 2022 compared to 1.4% in 2021.

“The Group’s credit origination, vetting and ongoing monitoring and evaluation processes were enhanced during the year. This resulted in the credit portfolio performance coming in at the top of our markets’ ranges, underpinned by strongly secured and risk-mitigated advances.

Total Assets increased from US$1.29 billion to US$1.39 billion. All of these contributed to a 32% total return on average equity versus 25% in 2021.

This is an increase from 2021 levels, when a final dividend of USD$4.4 million representing 0.18 US cents per share, was paid to shareholders,” Mrs Sambasivan-George reported.

The FMB capital Board of directors has resolved to pay a dividend of US$12 million out of 2022 profits,

representing 0.4881 US cents per share.