FIRST Capital Bank Zimbabwe (FCB) is set to leverage its Victoria Falls Stock Exchange (VFEX) listing to attract “high-quality funding,” the financial institution said.
Last year, the bank secured credit lines worth US$33,32 million. Of this amount, a €12,5 million (US$13,32 million) credit line came from the European Investment Bank and US$20 million from the African Export-Import Bank.
In its 2023 annual report for the period ended December 31, 2023, FCB chairperson Patrick Devenish revealed that the bank was expecting to secure US$25 million worth of credit lines this year from global institutions.
Last month, FCB secured US$15 million from the African Development Bank as a trade financing package to boost local trade.
“The bank is also advanced in steps to secure a US$10 million export finance facility with the Trade and Development Bank which will have a positive impact on supporting trade,” Devenish said.
He said the bank will leverage its listing on the foreign currency-only bourse.
“In 2023, we made history as the first bank to list on VFEX, broadening access to global capital markets for our stakeholders. Following our listing, a memorandum of understanding was signed with VFEX to promote the bourse. These efforts will help to deepen Zimbabwe’s capital markets and support the country’s efforts to attract new investment,” Devenish said.
“To consolidate our commitment to Zimbabwe, we have firmly established our roots and commenced the construction of a head office that is inspired by the desire to project our contribution to environmental stewardship.”
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“Our listing on the Victoria Falls Stock Exchange further consolidates our commitment and positions the bank strategically to attract high-quality funding and make a lasting contribution to the growth of the economy.”
In the outlook, growth prospects for the Zimbabwean economy for 2024 are expected to be subdued on account of the El-Nino weather phenomenon and its impact on the 2023/2024 summer cropping season. This would reduce earnings from mining as a result of low levels of global commodity prices, the bank said.
The bank posted a consolidated adjusted profit after tax of US$15,4 million for the year 2023, up 26% from the 2022 comparative.
This was supported by a 33% increase in total income to US$71,2 million for the year ended December 31, 2023, from US$53,4 million in the prior year.
“This growth was driven by an improvement in the underlying business, growth of the customer base, increase in loans and advances and an increasing proportion of US$ transactions,” FCB chief executive officer Tapera Mushoriwa said.
“We are a growing bank and will continue to pursue strategies that will deliver an improved quality of service to our 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.”
