FMBcapital Holdings Plc Announces Strong Set of Results in First Half of 2023

Wednesday 30 August, 2023

 Operational Highlights: 

  • Net interest income for the half year is up 25% and total non-interest income is up 28%, resulting in total operating income of US$ 121 million – a growth of 28% period on period.
  • Profit after tax is US$ 42 million – up 67% from June 2022.
  • Loans and advances to customers are up 12% at period end, closing at US$ 700.5 million.
  • Credit loss ratio on customer advances (net impairment expense as a proportion of average advances) was 0.94% (2022: 0.5%). The Group’s non-performing assets in relation to loans and advances remain amongst the lowest in the industry.
  • Customer deposits are up 26% to more than US$ 1.13 billion.
  • Over the six months to 30 June 2023, our banking operations grew their combined customer base from 555,016 to 585,966 – bringing in over 30,000 new clients in the first half of the year.

Wednesday 30 August 2023 – FMBcapital Holdings Plc (FMBCH) the holding company for First Capital Bank operations (in combination, “the Group”), has today announced a strong set of results for the first 6 months of 2023, showcasing significant growth in financial performance. The Group reported a profit after tax of US$ 42 million, which is up by 67% from the same period last year (2022 interim profit after tax: US$ 25 million). The results as at the end of June 2023 come on the back of an already impressive full-year performance in 2022 which yielded a profit after tax of US$ 61.2 million.

“I am pleased to report a solid set of results for the 2023 half year. Our commitment to service excellence and strategic investments in our people and technology have been integral to our growth so far,” said Mr. Jaco Viljoen, Group Chief Executive Officer at FMBCH. “We are delighted with our half-year results and remain intent on positioning each First Capital Bank operation as a leading financial institution in its markets and across the region. We will continue to pursue our strategic priorities by driving long-term, sustainable performance and growth. These priorities include: deepening First Capital’s brand equity with existing and new customer, increasing the active customer base, and developing our people. We believe that, if we take care of our first principles, the business growth will organically follow; at the FMBCH Group: “belief comes first.”

Mrs. Mythri Sambasivan-George, the FMBCH Group Chief Finance Officer added that the Group’s total operating income had grown by 26% period on period to US$ 121 million, despite challenging macro-economic conditions in each of the Group’s five operating markets. Mrs. George added that FMBCH remains well-governed and intent on maintaining a healthy financial position that enables long-term, sustainable performance and growth. “The Group’s commitment to service excellence and customer-centric solutions has already yielded a strong top-line revenue growth, adding 30,000 customers to the FMBCH Group’s five hundred and fifty-five thousand customers reported at the end of 2022.  We anticipate steady progress in the future, albeit subject to economic challenges, and possible non-recurrence of significant profit drivers in 1H2023,” she added.

FMBCH grew its consolidated customer advances by 12% to close at US$ 700 million, and investment instruments by 40% to US$ 297 million. These assets were funded by a customer deposit base of US$ 1.13 billion; registering a pleasing 26% growth in crucial liquidity. This balance sheet growth yielded total operating income of US$ 121 million from US$ 95.7 million in the six months to June 2022, while operating expenses increased to US$ 57.4 million from US$ 48.5 million in the previous period. The Group’s cost to income ratio has improved to 47% from 51% against the same period last year. Total assets increased by a healthy 20% from  US$ 1.29 billion to US$ 1.54 billion.

Each country operation has performed positively during the first half of 2023, growing the client base by over 30,000 to 585,966 customers. Botswana contributed US$ 7.65 million (1H2022: US$ 6.53m), Malawi and Mozambique almost doubled their respective outturns at US$ 16.33 million (1H2022: US$ 8.71m) and US$ 8.93 million (1H2022: US$ 3.78m) respectively, while Zambia achieved US$ 4.5 million (1H2022 US$ 5m) and Zimbabwe more than trebled its profitability to US$ 6.8 million (1H2022: US$ 1.25m).

The Board of directors has resolved to pay an interim dividend of USD 5 162 325 being 0.21 US cents per share (June 2022: 0.15 US cents). The interim dividend will be paid on or about 15 November 2023 to shareholders whose names will appear on the Register of Members at close of business on 10 November 2023. The Board’s intent is to maintain a regular dividend policy subject to the Group’s growth aspirations.

Click here to view the 2023 FMBCH Interim Consolidated Results

Media Contact
Kevin Kumalo
Group Communications Manager

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