Monday 17 August 2020
FMBcapital Holdings Plc (FMBCH), the holding company for First Capital Bank operations in Africa has this week released its result for the first half of 2020. The Group’s subsidiary banks located in Botswana, Malawi, Mozambique, Zambia and Zimbabwe have demonstrated solid resilience where the combined Net Profit Before Tax for the first half of 2020 grew by 156% to US$19.99 million with Profit after tax at US$14.29 million, a growth of 181% from June 2019.
Commenting on the half year performance, The Group Managing Director of FMBCH Mr. Dheeraj Dikshit said “The Group is encouraged by these results which are in line with the holding company’s 2020 financial and strategic goals. I would like to largely thank the extraordinary efforts of all our people who delivered a resilient first half performance in the face of challenging economic environments. Disciplined execution and fast innovation in the face of a crisis contributed to improved organic growth and profitability.”
For the period under review Net Interest for the Group grew by 5% to US$29.06 million. Non-Funded Income rose by 20% to US$23.90 million from US$19.95 million in June 2019. Total Income improved by 11% to US$52.96 million whilst Operating expenses increased by 1% to US$35.99 million. Total Assets increased by 15% from US$950 million to US$1.1 billion. The group has witnessed stellar performance from its Botswana subsidiary owing to increased transactional volumes, a growing customer base and a significant foreign currency income. FMBCH’s Zimbabwe business which had a difficult 2019 owing to exchange rate challenges in that market, also performed well above expectation while businesses in Malawi, Mozambique and Zambia have remained profitable.
“When the COVID-19 pandemic became more pronounced in the earlier months of 2020, the Group’s priority was to ensure the safety of our colleagues, customers, suppliers, partners, and the local communities in which we work in. We firmly believe that our proactive actions in our markets have supported each country’s objective and played a role in the fight against COVID-19. The Group has also shown agility in adapting to the crisis with customers embracing the bank’s digital channels.” said Mr. Dikshit.
Over the years FMBCH has invested in a solid technology hub domiciled in Mauritius to empower its customers to transact better, faster, and simpler. The Mauritius hub has enabled the business to improve its operational efficiency and offer new solutions for its customers. Its major focus for the rest of 2020 is to continue building on its digital platforms and service excellence while minimising the impact of Covid-19 pandemic.
The group indicated that it is poised to end the year in a strong position following a number of initiatives that have been implemented across its markets.
Click here to view the 2020 FMBCH Interim Consolidated Results
Group Communications Manager