Zim operations underpin FMBcapital

Mahendra Gursahani


FMBcapital Holdings, the regional firm that controls First Capital Bank (FCB) yesterday said it posted a US$21,3 million profit after tax during the year ended December 31, 2020 from a US$18,6 million loss in 2019.

The firm, with a footprint in Botswana, Malawi, Mozambique, Zambia, and Zimbabwe, said its Harare operations contributed the most to its operations.

It said it registered significant organic growth during the period riding on its business model, “which is built for strong and sustainable performance”.

“The company’s financial performance in 2020 was robust as we made significant progress in growing and optimising our group’s operations,” said Mahendra Gursahani, interim group managing director at the firm.

“Despite the challenges from the COVID-19 pandemic and a slowdown in economic activity, we remained not only open for business but continued with even greater resolve to offer and deliver new and innovative digital and customer service enhancements” he said.

Net interest income for the group grew by 18% to US$65,7 million.

Non-funded income rose by 21% to US$61,5 million from US$50,7 million in December 2019.

Total income improved by 19% to US$127,3 million while operating expenses decreased by 7% to US$79,7 million.

He said total assets increased by 2% from US$1,05 billion to US$1,07 billion.

“The performance of the Zimbabwe operations was the most impressive success story for the period. Improved economic stability in the country, coupled with our focused business growth interventions, saw the negative performance figures of 2019 (US$29,5 million loss) transforming into a profit of US$4,7 million in 2020. We are making good strategic progress through disciplined emphasis on our performance, people and purpose priorities. Our expectations for the group in 2021 are positive although we remain cautious of the COVID-19 pandemic which has caused economic uncertainty, not only in the markets that we operate in, but globally as well. Our focus as a group remains on delivering premium value for our customers, employees, and shareholders.

“We will continue to innovate and evolve our operating model to be more flexible and provide our clients with a banking experience that truly meets their financial aspirations. We therefore look forward to executing at an encouraging pace and momentum as we optimise our cost structures, increase our liquidity, and strengthen our balance sheet, adding value to our group and valued stakeholders,” said Gursahani.

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