FMB Capital Holdings Plc (FMBCH), the holding company for First Capital Bank operations in Africa has announced its half year results to 30 June 2021.
The Group’s subsidiary banks operating in Botswana, Malawi, Mozambique, Zambia, and Zimbabwe were all profitable in the first six months of the year despite the ongoing impact of Covid-19 and the hyper-inflation accounting in Zimbabwe, which produces unavoidable volatility in the reported numbers.
According to a press release from the Bank, The Group posted a combined profit after tax of US$13,1 million compared to US$14,3 million as of 30 June 2020.
Before tax profits rose to US$22,5 million from US$20 million in the same period last year.
Commenting on the half year performance, The Interim Group Managing Director of FMBCH, Mahendra Gursahani said; “These results reflect FMBCH’s resilience and how well their teams and businesses have navigated the pandemic as they continued to serve their customers and deploy relevant and new products into the markets.
Gursahani said despite the regular disruptions to operations, the Group’s businesses have successfully sustained uninterrupted banking operations ensuring that customers can access banking services safely whilst also protecting their staff and partners.
“I am thankful to all our people and colleagues across FMBCH who are dedicated and committed to the Group and continue to provide great service to our clients,” he said.
The group recorded growth in its Net Interest income to US$44,2 million compared to US$29,1 million in the same period last year. Non-Funded Income rose to US$32,5 million from US$23,9 million in the first half of 2020.
Total Income improved to US$76,7 million from US$52,9 million whilst operating expenses increased to US$46,3 million from USD$35.9 million.
Total Assets increased from US$1,09 billion to US$1,22 billion.
The Group also benefited from improved equity markets, with the market value of listed investments in Malawi and Zimbabwe increasing substantially in the first half of 2021.
The capital adequacy and liquidity ratios of all Group banks comfortably meet the prescribed prudential minimum ratios in their respective territories giving the Group capacity to selectively grow its balance sheet.
Earnings per share for the period under
review increased by 7% to US$0.3751 cents per share compared to US$0.3518 cents per share for the six months ended June 2020.
FMBCH indicated that it will, however, continue to exercise prudence in its balance sheet management across the territories where it operates leading with a focus on generating sustainable customer deposits.
Gursahani said the group is committed to evolve and introduce to its customers
new and leading-edge digital solutions to address their needs.
“We are investing substantially in
improving our offerings from WhatsApp banking to a much-enhanced internet banking platform, the design and development of which is well underway.
“We are always taking the feedback from our customers so that we remain relevant and supportive to them and their own business aspirations,” added Gursahani.
As a result of the positive half year performance for the group, FMBCH Directors have resolved to pay an interim dividend of USD$ 1,966,600 representing 0.08 cents (USD) per share during October 2021.
“This is is good news as no dividend was paid during the same period last year,” said Gursahani.Follow and Subscribe Nyasa TV :