MAURITIAN-BASED firm FMBcapital Holdings (FMBCH) posted a 29% increase in profit after tax to US$78,7 million in the financial year ended December 31, 2023, owing to a strong performance by its subsidiaries.
In the previous year, profit after tax was US$61,19 million.
FMBCH has operations in Botswana, Malawi, Zambia, Mozambique and Zimbabwe. Locally, the group operates through its subsidiary, First Capital Bank Zimbabwe.
In the period under review, FMBCH’s Botswana unit achieved the highest return on equity in the local industry through diversified ventures while in Malawi the group’s performance demonstrated a robust effort across various sectors.
In Mozambique, the group excelled by leveraging opportunities in the energy and natural resources sectors while in Zambia the firm managed fiscal and liquidity challenges effectively, maintaining steady progress, it said.
In Zimbabwe, the group said the listing of its unit on the Victoria Falls Stock Exchange allowed it to operate with a more stable currency resulting in no net monetary loss being recorded. This was from a net monetary loss of US$7,66 million in 2022.
The group said its Zimbabwe unit ensured stability and strategic growth amid hyperinflation and regulatory changes.
“Investments in digital banking platforms, including internet and mobile banking, coupled with a focus on consumer lending and relationship banking, have fuelled significant growth,” FMBCH said.
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“Despite a strong US$, the FMBCH group saw a 5% year-on-year increase in deposits and other liquidity sources. Customer loans and advances rose by 10% and income-yielding financial instruments grew by 5%.”
FMBCH managing director Jaco Viljoen said the group’s performance reflected the dedication and skill of its workers, who had been instrumental in executing the company’s strategy.
“We are committed to fostering a culture of service excellence, ensuring that we not only achieve our growth targets but also strengthen our market position and brand equity,” Viljoen said.
FMBCH’s customer loans and advances increased by 10% to US$716,4 million in the period under review from the prior year.
Deposits, during the same period under review, rose by 5% exceeding US$1,09 billion realised in 2022.
“Enhanced transactional, trade and foreign exchange treasury services drove a 39% increase in non-funded income to US$115 million, contributing to 46% of the group’s operating income, which rose to US$251 million,” it said.
“Operating expenses increased by 28% to US$123 million, resulting in a cost-income ratio of 49% [2022:50%]. The cost of credit risk increased to 1,9% from 0,7%, a favourable metric relative to industry standards. These comprehensive efforts resulted in a 29% increase in post-tax consolidated profit to US$78,7 million.”
The group said it remained well-capitalised across the markets it operates in supported by strong capital and liquidity risk management frameworks.
Total assets rose by nearly 10% to US$1,52 billion as of last year from 2022, driven by loans and advances to customers.
