malvernmugadzikwa
Business Writer
First Capital Bank (FCB) says growth in foreign currency holdings drove the bank’s growth in asset base by 124 percent in the first nine months 2024.
FCB, the only listed banking institution on the Victoria Falls Stock Exchange (VFEX) in a trading update, said regulatory capital also increased by 115 percent in the nine months to September 30, 2024, resulting in a capital adequacy ratio of 30 percent, well above the regulatory minimum of 12 percent.
In terms of USD performance, the bank’s asset base grew by 23 percent in the first nine months, driven by an increase in foreign currency holdings.
Regulatory capital increased by 20 percent in the nine months to September 30, 2024, resulting in a capital adequacy ratio of 30 percent, well above the regulatory minimum of 12 percent.
Core capital and liquidity ratios also remained comfortably above their respective thresholds of US$30 million and 30 percent.
The Bank’s core capital and liquidity ratios also remained comfortably above their respective thresholds of ZiG 746,5 million and 30 percent.
“Business realignment, strengthening of the control environment and cost rationalisation continued during the quarter under review, with a restructuring exercise in the current quarter aimed at optimising the operating model,” reads the trading update.
For the period under review, operating income including net open position gains increased 28 percent year on year to ZiG785,6 million compared to ZiG617,8 million in the prior year.
Bank deposits increased by 136 percent to ZiG3,933.6 million from ZiG1,671.8 million while loans rose 128 percent to ZiG2,780.3 million from ZiG1,224.1 million. The Banks non-performing loan ratio for the period was 2,7 percent, down from 13,3 percent year on year.
The bank noted that during the period under review, the Monetary Policy Committee of the Reserve Bank of Zimbabwe implemented several measures that are expected to alleviate inflationary and exchange rate pressures.
The bank said increased statutory reserve ratios and the Bank Policy rate are anticipated to limit the bank’s lending capacity and loan book growth.
“Therefore, continued expansion in lines of credit will remain key in 2025,” the bank said.
It added that post the business realignment, management is confident in the Bank’s ability to deliver solutions for its clients, expanding its sectoral base to support the growth of key sectors within the Zimbabwean economy, including mining, agriculture, tourism, and manufacturing
Bongani Ndlovu