First Capital Bank Expands Credit Lines and Initiatives for Growth

April 30, 2024
First Capital Bank | Report Focus News
First Capital Bank

First Capital Bank (FCB) has actively engaged the African Development Bank (AfDB) and Trade Development Bank (TDB) for fresh lines of credit, following substantial drawdowns on previous loans. The drawdown on €12.5 million from the European Investment Bank has been exhausted, while 30 percent of the US$20 million facility secured from the African Export-Import Bank (Afreximbank) has been utilized.

FCB reports that the funds from earlier loans primarily supported medium-sized corporate customers with capital funding relief. This initiative aligns with the bank’s commitment to seek new lines of credit to enhance its capacity in supporting the country’s productive sectors. FCB’s efforts are part of its initiatives to leverage its core banking system to create value for stakeholders.

FCB CEO Mr. Tapera Mushoriwa highlighted in the statement of results for the year ending December 2023 that the €12.5 million EIB credit line was 81 percent fully drawn, while US$6 million has been utilized from the US$20 million Afreximbank credit line as of December 31, 2023.

The bank continues to engage various financiers for additional credit lines, including the African Development Bank and Trade Development Bank, at different stages of negotiation.

Mushoriwa also mentioned several forthcoming initiatives aimed at unlocking potential, including platform upgrades, mobile facility with Zimra, US dollar POS acquisition, bill payments in US dollars, security enhancements, in-branch Zinara licensing, and strategic partnerships with global brands like Emirates.

The bank introduced new products in 2023, such as sole trader accounts, low-cost accounts, host-to-host, a seamless payments platform for corporates, and USD Individual and Group savings.

Operationally, FCB’s total comprehensive income for the year ending December 2023 was US$16.6 million, a 20 percent decrease from the US$20.7 million reported in 2022. Profit after tax for the same period closed at US$15.4 million, reflecting a 26 percent growth from the previous year’s US$12.2 million.

Core capital increased by three percent to US$52.5 million as of December 31, 2023, from US$50.9 million in 2022, exceeding the regulatory minimum of US$30 million with a comfortable margin of safety maintained. The bank’s capital adequacy ratio stood at 28 percent, well above the regulatory minimum of 12 percent.

First Capital Bank Chairman Mr. Patrick Devenish announced a final dividend of US0.22 cents per share, bringing the total dividend for the year ended December 31, 2023, to US0.36 cents per share.