First Capital loan book performs well after lockdown relaxation

First Capital Bank loan book has been performing so well in the third quarter of the year with non-performing loans at 0.19%, the group’s trading update reveals.

According to the bank, loans for the period under review grew by ZWL1.3 billion to ZWL6.1 billion.

“The bank noticed an increase in both local and foreign currency loans due to increased economic activity after the lockdown measures had been eased,” reads the update.

Also, the bank has recorded an increase in customer deposits to ZWL12.6 billion, its third quarter Deposits in the same quarter the prior year amounted to a total of ZWL2.8 billion.

According to the company’s acting secretary Sarudzai Binha, an increase in customer deposits was driven by increases in both local and foreign currency depositors with foreign currency constituting to 46% of the total deposits.

“The Bank’s year to date inflation adjusted operating income increased by ZWL1.4 billion from the second quarter to ZWL3.7 billion in the third quarter whilst in historical terms, the increase was ZWL1.4 billion to ZWL3.6 billion. The increase was driven by both the increase in loans and transactional incomes,” she said.

Additionally, inflation adjusted year to date operating expenses for the group increased from ZWL1 billion to ZWL2.6 billion whilst in historic cost terms the increase was ZWL692 million to ZWL1.9 billion.

However, in the update, the group’s action company secretary Sarudzai Binha said the third quarter of the year had some headwinds due to Covid which affected the business operating hours hence transactional levels were lower.

On the Zimbabwe Stock Exchange (ZSE), First Capital traded on the negative as at 09 November 2021 trimming $0.1960 to end at $3.3001.

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