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Natasha Chamba, Business Reporter
FIRST Capital Bank’s core capital closed year 2018 at $107 million, surpassing the 2020 minimum capital requirement of $100 million set by the Reserve Bank of Zimbabwe.
The bank also revealed in its financial statements for the period ended 31 December 2018, that profit after tax surged by 23 percent to $24, 3 million compared to $19, 8 million in the prior year, resulting in a basic earnings per share of 1, 13 cents up from 0, 92 in the prior year.
In a statement accompanying the financial report, chairman, Mr Sydney Mutsambiwa, said the bank sustained positive growth on the back of macro-economic environment improvement in the first half of the year.
“The bank sustained a steady growth trajectory, posting a good set of results for the year. While the macro-economic environment improved in the first half, the second half was notably more challenging, as foreign currency shortages and inflation further constrained capacity to service cross border payments and the overall level of business,” he said.
“Through this period, management and staff continued to demonstrate commitment and dedication to serve clients.”
The bank’s managing director, Mr Samuel Matsekete, also reported net interest income growth of 86 percent in the comparable period from $21 million to $41 million.
“Net interest income grew by 86 percent compared to prior year driven by growth in interest earning assets. Surplus liquidity was invested mainly in Government securities to optimise return on assets, whilst efforts to grow customer assets also yielded a strong outcome,” he said.
“Gross loans and advances to customers grew by 72 percent from $117 million at the end of 2017 to $201 million as at 31 December 2018. Net interest income constituted 49 percent of total income compared to 30 percent for prior year.”
Due to economic uncertainties, the bank did not propose a dividend for the year ended 31 December 2018.
FCB recently announced the withdrawal of a cautionary statement in which it envisaged to restructure its balance sheet, a process which is still under review.
While the bank has surpassed the 2020 minimum capital requirement of $100 million, board and management have said uncertainties in the economic environment still necessitate more prudent approaches.
Mr Matsekete further noted that the bank’s transition programme was progressing well and investments in new and enhanced technology platforms were on track for delivery in the first half of 2019.
— @queentauruszw.
Online Reporter