Online Reporter
Tapiwanashe Mangwiro
First Capital Bank has reported a substantial surge in its loan book for the year ended December 31, 2024, underlining a renewed focus on supporting key economic sectors as part of its ongoing transformation strategy.
The bank’s loan portfolio expanded by 150 percent over the year, a move chief executive officer Tapera Mushoriwa said demonstrated the bank’s strategic intent to deepen relationships and provide market-relevant credit solutions.
In a statement accompanying the bank’s full-year financial results, Mr Mushoriwa said, “We have deliberately expanded our lines of credit, which now total US$50 million, to better support strategic sectors such as manufacturing, mining, tourism and agriculture.
“This aggressive loan growth aligns with our broader mission of enabling sustainable economic activity.”
The bank’s net operating income also rose by 26 percent to ZiG1,3 billion, driven largely by expansion of the loan book, increased customer activity and wider usage of banking channels.
“Despite pressures from fee caps, currency devaluation and a decline in foreign currency trading volumes, we maintained a strong earnings trajectory by scaling customer acquisition and expanding wallet share,” Mr Mushoriwa added.
Over the years, the bank onboarded more than 70 000 new customers, with 80 percent adopting its digital platforms, a statistic that reflects the bank’s digital push and growing market footprint.
Chairman Patrick Devenish said that while earnings per share dropped by 12 percent to ZiG 16.51 cents, the bank’s financial position remains strong.
“We recorded a consolidated operating profit after tax of ZiG 356,8 million, compared to ZiG 403,2 million in 2023,” he noted.
He attributed the marginal decline in earnings to the evolving macroeconomic environment but stressed that the underlying fundamentals remain solid.
“Core capital grew 19 percent to US$61 million, maintaining a robust buffer above the US$30 million regulatory minimum.
“Our capital adequacy ratio stands at an impressive 29 percent, and our liquid assets ratio of 53 percent positions us well to support continued asset growth,” he said.
The board proposed a final dividend of US$0,315 cents per share, bringing the total dividend payout for the year to US$0,661 cents per share.
“This reflects our commitment to shareholder value, even as we invest in future growth,” Mr Devenish added.
The bank’s strategic transformation was a central theme in the 2024 performance update.
Mr Mushoriwa said, “The year marked a pivotal shift in operational efficiencies, governance and financial discipline.”
“We have embedded an optimal operating model that has enhanced our structural resilience. The realignment has optimised our cost framework and improved decision-making agility,” he explained.
The cost-to-income ratio, however, increased to 63 percent in 2024, largely reflecting the cost of the ongoing business realignment. “This is a short-term cost. We expect this ratio to trend downwards as transformation benefits fully materialise,” Mr Mushoriwa added.
Despite the ambitious loan book expansion, asset quality appears to have improved.
The loan loss coverage ratio decreased to 2 percent in 2024, down from 5 percent the previous year.
According to Mr Mushoriwa, “This improvement reflects better loan monitoring and control mechanisms, as well as strengthened underwriting standards.”
Looking ahead, Mr Devenish painted a cautiously optimistic picture for 2025.
“With economic growth projected to reach 6 percent, driven by a rebound in agriculture, increased mining and tourism investments, and improved fiscal stability, First Capital Bank is positioned to harness emerging opportunities,” he said.
The bank plans to continue investing in its digital infrastructure and SME banking segment to support inclusive growth.
“We have tailored credit and transaction solutions specifically for SMEs, recognising their critical role in driving economic development,” said Mr Mushoriwa.
As First Capital Bank sharpens its focus on customer-centric solutions and scales its financial footprint, both executives agreed that maintaining sound governance and risk management frameworks would be vital to navigating the risks ahead.
“Our priority remains long-term financial sustainability,” said Mr Devenish. “We are not just lending, we are building a resilient institution that creates wealth, strengthens capital and delivers shareholder value.”
With a growing loan book, improved asset quality, and strong capital buffers, First Capital Bank appears poised for accelerated growth in a changing economic landscape.
