* Up by 11% realised in June 2023 and to pay an interim dividend of US$5,162,325 being 0.21 US cents per share
* Total operating income of US$128 million — a growth of 6% in same period last year
* The Group’s strategy remains growth oriented, with sustained impetus to build into a significant regional bank
* With a diversified portfolio of corporate, business and consumer banking solutions, complemented by relevant treasury activities
By Duncan Mlanjira
In the first half financial performance of 2024, FMBcapital Holdings Plc, the holding company of First Capital Bank (FCB) operations, has has posted sustainable growth in its operations with an interim US$46.8 million profit after tax.
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In its statement, the Group says the profit after tax is a growth of 11% from June 2023 while the total operating income is US$128 million – a growth of 6% in same period last year.
Customer loans and advances grew by 4%, closing at US$729 million while credit loss ratio continues to be market leading at 1.39%, of which the June 2023 performance was 0.94%).
Customer deposits are also up by 8%, closing at over US$1.23 billion and the Group announces that the strong set of results for the first six months of 2024, showcase significant growth in its financial performance.
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The statement adds that in the six months to June 30, 2024, FMBcapital Holdings Plc successfully navigated a difficult economic environment to record the profit after tax of US$46.8 million and is expected to deliver a 12-month rolling return on average equity (ROE) of 36%.
The statement quoted Group chairperson, Terence Davidson, as saying: “The Group’s strategy remains growth oriented, with sustained impetus to build into a significant regional bank with a diversified portfolio of corporate, business and consumer banking solutions, complemented by relevant treasury activities.”
Terence Davidson
While Group Managing Director, Jaco Viljoen added that the performance “reflects a healthy and growing brand, in which our efforts to enhance customer centricity, invest in our technology and our people, and remain well governed, are reflected”.
“We are committed to delivering superior client experience, building sustainable solutions to enable the Group to deliver against its strategy and invest in clients and digital capabilities that will support continued business growth.”
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The Group further says the FMBCH’s subsidiaries have performed positively in their respective markets during the first half of 2024 (1H2024), that include the following highlights:
* Botswana — contributing 25.8% to the Groups’ overall profit after tax with US$12.08 million (1H2023: 18%, at US$7.65m);
* Malawi — achieved US$9.76 million profit after tax across various sectors, despite significant economic challenges (1H2023: US$16.33m);
* Mozambique — continuing to deliver profit growth, with a profit after tax of US$11.81 million (1H2023: US$8.93m);
* Zambia — maintaining steady progress with US$4.08 million (1H2023: US$4.50m) despite continued currency volatility and trading uncertainty; and
* Zimbabwe — recording commendable growth, registering 69% growth of US$11.51 million profit after tax (1H2023: US$ 6.81m).
These achievements, says the statement, “underscore the FMBCH Group’s robust governance and strategic capabilities as the Group remains well-capitalised across its geographies”.
On the Group’s risk management and financial strategy, FMBCH Group CFO, Mythri Sambasivan-George said: “Strong governance and enterprise risk management are mainstays of the oversight process, such that capital, liquidity, and other resource allocation is optimal.
“This approach to liquidity and performance management has enabled us to achieve continued balance sheet growth and higher margins.”
Mythri Sambasivan-George
The Board of Directors has thus resolved to pay an interim dividend of US$5,162,325 being 0.21 US cents per share (1H2023: 0.21 US cents) — to be paid to shareholders on or about October 9, 2024.
FMBcapital Holdings Plc provides banking and finance solutions through its operating subsidiaries in five Southern African Development Community (SADC) markets — Malawi, Botswana, Mozambique, Zambia and Zimbabwe, with an information technology and operations shared service centre in Mauritius.
The Group has a total asset base of over US$1.7 billion, employs over 2,000 staff and services the financial needs of customers across Africa.
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