Monday 26 June 2023

Operational highlights:

• FMBcapital Holdings PLC (FMBCH) banking operations end the 2022 financial year with USD 61.2 million, up 51% on the 2021 year.
• Net interest income for the year grew by 13% and total non-interest income by 8%, resulting in total operating income of USD 191.6 million – a growth of 10% year on year.
• Loans and advances to customers are up 18% at year-end, closing at a net USD 651.7 million.
• Credit loss ratio on customer advances (net impairment expense as a proportion of average advances) was 0.77% (2021: 1.43%).
• Further, the Group’s non-performing loans remain one of the lowest in the regional banking industry, at only 2.8% (2021: 2.9%) of the USD 664.6 million gross advances portfolio (2021: USD 565.3 million).
• Customer deposits were up 17% rising to more than USD 1.04 billion.

Blantyre, Malawi – FMBcapital Holdings Plc (FMBCH), the holding company for First Capital Bank operations in Botswana, Malawi, Mozambique, Zambia, Zimbabwe, and First Capital Shared Services Limited in Mauritius, reported that the banking group had a successful year, with record performances across all Group businesses in the five SADC countries for the fiscal year ended  31 December 2022.

Speaking at the Annual General Meeting of Shareholders, FMBcapital Holdings Group Chief Executive Officer Mr. Jaco Viljoen stated that the results demonstrated a positive shift based on the Group’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” said Mr. Viljoen.

He added that 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, and this has seen the countries coming together as one team and supporting each market’s local agendas.

Speaking on the financial performance, the Group Chief Finance Officer, Mrs. Mythri Sambasivan-George said “The Group delivered strong financial results, closing with a healthy balance sheet, driven by substantial customer growth due to their faith and belief in us. 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”.

FMBCH posted a strong performance for the year ended 31 December 2022, with growth in operating income, income accretive assets and profits across its footprint. Customer numbers grew by 24% to over 555 000, demonstrating the Group’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 and resulting in an improved cost to-income ratio of 50%. Net impairment expense (ECL charge and write-offs net of recoveries) in relation to underlying average net customer advances was 0.77% for 2022 compared to 1.4% in 2021. The Group’s credit origination, vetting and ongoing monitoring and evaluation processes were enhanced during the year. This resulted in the credit portfolio performance coming in at the top of our markets’ ranges, underpinned by strongly secured and risk-mitigated advances. Profit after tax of US$61.2 million was achieved for 2022 across the Group, a 51% 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% total return on average equity versus 25% in 2021.

“The Group is well capitalised, and we have sufficient liquidity, as well as pathways to new liquidity”, added Mrs. Sambasivan-George. Customer deposits were up 17% and reached US$1.04 billion, with loans and advances to customers closing on US$652 million, growing by 18%.”

The Board of directors 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 USD$4.4 million representing 0.18 US cents per share, was paid to shareholders.

Click here to view the 2022 Annual Financial Statements

Media Contact
Kevin Kumalo
Group Communications Manager
Kevin.Kumalo@firstcapitalbank.co.zw