eBusiness Weekly
Michael Tome
FIRST Capital Bank (FCB) says it is formulating several mechanisms to enhance the quality of service and reach in the local market.
Tapera Mushoriwa, FCB chief executive officer, said a number of initiatives were in the pipeline as the bank sought to unlock potential.
Implementation of these measures is part of FCB’s resolve to enhance operations with a broader vision of growing the bank’s footprint across the country.
As it stands the bank began enhancements of some existing platforms to offer upgraded and more relevant service experience options.
New products such as sole trader accounts, low-cost accounts, host-to-host, a seamless payments platform for corporates and USD individual and Group savings were introduced in 2023.
The period also witnessed enhancement on various critical platforms including USSD upgrade, ZIMRA on mobile, USD POS acquiring, USD-denominated bill payments, security enhancement through FCB secure, Zinara licensing in-branch, and strategic alliances with global brands such as Emirates.
“We are a growing bank and will continue to pursue strategies that will deliver improved quality of service to our customers whilst we impact all critical sectors of the economy whilst remaining relevant in all our chosen markets.
“We continue to unlock the extensive capabilities of our core banking system, we aim to reduce cost-to-serve and also bring transactional convenience through continuous innovations and smart partnerships with global brands,” said Tapera in the statement accompanying the bank’s full year results to December 2023.
Also, in the period under review, FCB engaged the African Development Bank (AfDB) and the Trade Development Bank (TDB) for lines of credit after registering significant drawdowns from previous facilities.
This follows 81 percent drawn down from the European Investment Bank (EIB) €12,5 million and a 30 percent draw-down from the US$20 million facility from the African Export-Import Bank (Afreximbank)
According to FCB, the funding was mainly directed at providing capital funding relief to various medium-sized corporate customers.
This development comes as the bank has repeatedly highlighted that it will continue to scout for new lines of credit to bolster its capacity to support the country’s productive sectors.
The efforts are part of the bank’s initiatives directed at unlocking the capabilities of the company’s core banking system to realise value for stakeholders.
“The €12, 5 million EIB line of credit was 81 percent fully drawn during the period under review. A further US$20 million line of credit has been mobilised with the Afreximbank with US$6 million already drawn down as of 31 December 2023.
“The bank continues to engage various financiers for additional lines of credit with the African Development Bank and Trade Development Bank at varying stages,” said Mushoriwa.
Operationally, the bank’s total comprehensive income for the year to December 2023 amounted to US$16, 6 million that is 20 percent lower than the US$20, 7 million reported in 2022.
This was credited to higher fair value gains on the investment property portfolio in 2022 with the translated gains under ZWL being higher than gains recognised under 2023 USD stable currency reporting.
The bank’s profit after tax for the year to December 2023 closed at US$15, 4 million a, 26 percent growth from the previous year’s US$12, 2 million.
Core capital increased by three percent to US$52, 5 million during the year to December 2023 from US$50, 9 million recorded in the year ending December 2022.
“This level is above the regulatory minimum of US$30m with a comfortable margin of safety being maintained.
“The bank’s capital adequacy ratio remained strong, closing the period at 28 percent which is well above the regulatory minimum of 12 percent.
“This performance was underpinned by an increase in the customer base, growth in the loan book, and exchange gains,” said FCB Chairman Patrick Devenish.
A final dividend of US0.22 cents per share was declared.
This brings the total dividend for the year ended 31 December 2023 to US0, 36 cents per share.
The bank’s loan loss ratio increased from two percent in 2022 to 5five percent in 2023 with exposures exhibiting increased credit risk being largely within the agriculture portfolio.
