eBusiness Weekly
Oliver Kazunga
FMB Capital Holdings Plc (FMBCH), the parent company for First Capital Bank, has recorded a 51 percent spike in profit after tax of US$61,2 million across the group in the financial year ended December 31, 2022.
The group has footprints in five Sadc countries namely: Zimbabwe, Botswana, Malawi, Mozambique and Zambia as well as in Mauritius where it operates First Capital Shared Services Limited.
In a statement on the group’s financial performance for the year under review, FMBCH said; “Profit after tax of US$61,2 million was achieved for 2022 across the group, a 51 percent growth on 2021 levels of US$40 million. “Total assets increased from US$1,29 billion to US$1,39 billion.
“All of these contributed to a 32 percent total return on average equity versus 25 percent in 2021.”
During the financial year under review, the group also posted a strong performance with growth in operating income, income accretive assets and profits across its footprint.
Customer numbers grew by 24 percent to over 555 000, demonstrating FMBCH’s commitment to providing quality services that meet clients’ needs.
Net operating income grew to US$192 million compared to US$173 million in the previous period.
Total expenses were contained through process standardisation and simplification, cost control and operational efficiency, staying flat at US$96 million for the year under review and resulting in an improved cost to-income ratio of 50 percent.
Net impairment expense (ECL charge and write-offs net of recoveries) in relation to underlying average net customer advances was 0,77 percent for 2022 compared to 1,4 percent in 2021.
Speaking at the Annual General Meeting of shareholders, FMBCH group chief executive officer, Jaco Viljoen, stated that the results demonstrated a positive shift based on the firm’s strategic thrust, which leveraged on each country’s strength.
“When I assumed the role of group CEO in January 2022, my top priority was to reinforce our group strategy, with an underlying vision to amalgamate a regional banking group under a strong brand, focused on delivering relevant products and appropriate solutions to the customers we serve,” he said.
Viljoen said the group’s achievements are attributable to the hard work and efforts of the team, which has seen growth in the past year with internal appointments as well as the on-boarding of several talented senior leaders.
This, he said has seen the countries coming together as one team and supporting each market’s local agendas.
On their financial performance, the group’s chief finance officer Mythri Sambasivan-George, was quoted as saying they delivered strong financial results, closing with a healthy balance sheet, driven by substantial customer growth due to their faith and belief in FMBCH.
“This was enabled by a passionate and dedicated team across our six countries, deepening our brand affinity and supported by like-minded partners.
“The results for the year reflect quality earnings in line with our growth trajectory,” she said.
In 2022, the group also managed to enhance its credit origination, vetting and ongoing monitoring and evaluation processes.
This resulted in the credit portfolio performance coming in at the top of the markets’ ranges, underpinned by strongly secured and risk-mitigated advances.
“The group is well capitalised, and we have sufficient liquidity, as well as pathways to new liquidity”, said Mrs Sambasivan-George.
During the period under review, customer deposits were up 17 percent and reached US$1,04 billion with loans and advances to customers closing on US$652 million, growing by 18 percent.
Meanwhile, FMBCH board has resolved to pay a dividend of US$12 million out of 2022 profits, representing 0,4881 US cents per share.
This is an increase from 2021 levels, when a final dividend of US$4,4 million representing 0,18 US cents per share, was paid to shareholders.
