First Capital Bank’s sustainable banking model cre...

First Capital Bank’s sustainable banking model creates shareholder value

Audrey Galawu

First Capital Bank, a subsidiary of FMB Capital Holdings Plc has released their 2023 interim results which reflect sustainable growth within their business operations.

The Bank’s performance shows their agility, in the face of a challenging macroeconomic environment supported by a sustainable banking model that continues to create shareholder value.

The Bank reported an adjusted profit of US$9.05 million which was supported by income growth at US$32.1 million over the six months to June 2023.

This growth was driven by an improvement in the underlying business namely increase in customer base, growth in loan book and exchange gains.

The bank continues to actively pursue cost optimisation strategies to manage their overall cost base.

During the period under review, net interest income and net fees and commissions increased by 35% and 23% respectively while operating expenses increased by 22% from US$16.6 million in the first half of 2022 to US$20.3 million in the period under review.

This resulted in the cost to income ratio moving from 58% in June 2022 to 63% in June 2023. The adjusted total comprehensive income for the period amounted to US$8.2 million for the six months to June 2023, 43% lower than the US$14.4 million total comprehensive income reported for the corresponding period in 2022.

The Bank’s capital adequacy ratio remained strong, closing the period at 37% well above the regulatory minimum of 12%.

First Capital Bank Limited Managing Director, Ciaran McSharry said customers and clients are central to the business.

“We are motivated by their aspirations and our ability to bring world class banking solutions that will proffer viable economic growth.

“Our robust service delivery framework is designed to not only provide market relevant solutions but to uniquely provide convenience, efficiency, and increased security.

“This has seen the bank continue to accelerate innovation through relevant digital enhancement on Point of Sale, gold card and one-stop-shop bancassurance capabilities among others,” he said.

First Capital Bank Chief Finance Officer, Fanuel Kapanje said that providing funding to the productive sectors of the economy remains a key focal area for them.

“Our strategic partnerships and mutually beneficial relationships with other global financial institutions.

First Capital Bank was the first bank to list on the Victoria Falls Stock Exchange in May this year as part of their efforts to unlock value for shareholders whilst providing great opportunities for investors.