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FIRST Capital Bank (FCB), which mobilised US$20 million line of credit with the African Export-Import Bank (Afreximbank) last year is seeking further lines of credit and engagements with the African Development Bank and Trade Development Bank.
In its financial year ended December 31, 2023, chief executive officer, Mr Tapera Mushoriwa indicated that the financial institution secured a EUR12,5 million (US$13,32 million) credit line from the European Investment Bank.
“The EUR12,5 million European Investment Bank (EIB) line of credit was 81 percent fully drawn during the period under review, providing significant capital funding relief to medium-sized corporate customers.
“A further US$20 million line of credit has been mobilised with the African Export-Import Bank (Afreximbank) with US$6m already drawn down as at 31 December 2023.”
Mr Mushoriwa added that the bank continues to engage various financiers for additional lines of credit with the African Development Bank and Trade Development Bank at varying stages.
He indicated that the bank will continue to pursue strategies that will deliver an improved quality of service to customers while generating value and growth for all stakeholders.
“We are shaping our operating model for long-term sustainability while we impact all critical sectors of the economy and will endeavour to remain relevant in all our chosen markets.”
In the period under review, the bank’s total deposits turned out at US$123,2m, which is nine percent lower than US$136,1m as of 31 December 2022.
The reduction was largely driven by the loss of value on ZWL-denominated deposits following a 788 percent depreciation of the ZWL over the period.
The bank said US dollar-denominated deposits increased by six percent during the period under review.
Loans to customers increased by 30 percent over the same period to close at US$86,1m, compared to US$65,9m as of 31 December 2022, with 92 percent of business having been underwritten in US dollar as at 31 December 2023.
The Bank posted a consolidated adjusted profit after tax of US$15,4m for the year 2023 supported by a 33 percent increase in total income over the period from US$53,4m in 2022 to US$71,2m, for the year ended 31 December 2023.
The growth was driven by an improvement in the underlying business, driven by the growth of the customer base, increase in loans and advances and an increasing proportion of US dollar transactions.
Operating expenses increased by 55 percent from US$30m in 2022 to US$46,7m in the year under review.
The loan loss ratio increased from two percent in 2022 to five percent in 2023 with exposures exhibiting increased credit risk being largely within the agriculture portfolio.
The bank’s core capital increased by three percent from US$50,9m as of 31 December 2022 to US$52,5m as at 31 December 2023.
The level is above the regulatory minimum of US$30m with a comfortable margin of safety being maintained.
The Bank’s capital adequacy ratio remained strong, closing the period at 28 percent, which is well above the regulatory minimum of 12 percent.
With a liquid assets ratio of 52 percent, the Bank carried a comfortable buffer above the regulatory minimum of 30 percent representing capacity to underwrite more business.
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