FIRST Capital Bank Zimbabwe’s (FCB) operating income, including net open position gains, grew 25% to US$57 million in the year-on-year (y-o-y) period ended September 30, 2024, owing to the bank optimising operations.
In the comparative 2023 period, FCB recorded operating income, including net open position gains of US$45,6 million.
In its third quarter trading update for 2024, FCB said the bank’s asset base grew by 23% in the first nine months, driven by an increase in foreign currency holdings.
“Regulatory capital increased by 20% in the nine months to September 30, 2024, resulting in a capital adequacy ratio of 30%, well above the regulatory minimum of 12%,” FCB said.
“Core capital and liquidity ratios also remained comfortably above their respective thresholds of US$30 million and 30%.”
During the y-o-y period under review, total deposits rose 30% to US$158,1 million from the 2023 comparative.
Loans were up 26% in the same period to US$112,4 million from the comparative timeframe last year.
FCB said higher import bills were negatively affecting the balance-of-payments outlook and that demand for foreign currency continued to exert pressure on the base currency with a devaluation recorded and subsequent monetary interventions.
“The Monetary Policy Committee of the Reserve Bank of Zimbabwe implemented several measures on September 27, 2024, expected to alleviate inflationary and exchange rate pressures,” FCB 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.
“Post the business realignment, the bank’s board and management are 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.”