3 September 2024

FMBcapital Holdings Plc Announces 2024 Interim Results, profiling sustainable growth in its operations.

 Key highlights of the Group’s 2024 first half performance include:

• Profit after tax (PAT) is USD 46.8 million – up 11% from June 2023.
• Total operating income of USD 128 million – a growth of 6% period on period.
• Customer loans and advances grew by 4%, closing at USD 729 million.
• Credit loss ratio continues to be market leading at 1.39% (June 2023: 0.94%).
• Customer deposits are up by 8%, closing at over USD 1.23 billion.

FMBcapital Holdings Plc (FMBCH) the holding company of First Capital Bank operations (in combination, “the Group”), has announced a strong set of results for the first 6 months of 2024, showcasing significant growth in financial performance. In the six months to 30 June 2024, FMBcapital Holdings plc successfully navigated a difficult economic environment to record a profit after tax of USD 46.8 million and deliver a 12-month rolling return on average equity (ROE) of 36%.

Terence Davidson, the Group Chairman, stated, “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.”

Robust Subsidiary Performance

“Our 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,” shared Jaco Viljoen, FMBCH Group Managing Director. “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.”

FMBCH’s subsidiaries have  performed positively in their respective markets during the first half of 2024 (1H2024), including the following highlights:

• Botswana: Contributed 8% to the Groups’ overall PAT with US$ 12.08 million (1H2023: 18%, at US$ 7.65m).
• Malawi: Achieved US$ 9.76 million PAT across various sectors, despite significant economic challenges (1H2023: US$ 16.33m).
• Mozambique: Continued to deliver profit growth, with a PAT of US$ 11.81 million (1H2023: US$ 8.93m).
• Zambia: Maintained steady progress with US$ 4.08 million (1H2023: US$4.50m) despite continued currency volatility and trading uncertainty.
• Zimbabwe: Recorded commendable growth, registering 69% growth US$ 11.51 million PAT (1H2023: US$ 6.81m).

These achievements underscore the FMBCH Group’s robust governance and strategic capabilities as the Group remains well-capitalised across its geographies.

Commenting on the Group’s risk management and financial strategy, Mythri Sambasivan-George, FMBCH Group CFO, 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.”

 Dividend

The Board of Directors has resolved to pay an interim dividend of USD 5 162 325 being 0.21 US cents per share (1H2023: 0.21 US cents). The interim dividend will be paid on or about 9 October 2024 to shareholders.

Click here to view the 2024 FMBCH Interim Consolidated Results

Media Enquiries

Fadzai Marowa
Group Marketing Manager
fadzai.nyoka@firstcapitalbank.co.zw