Published: 02 May 2025

First Capital Bank has posted robust financial results for the year ended December 31, 2024, highlighted by a 150 percent surge in its loan book, signaling a deliberate pivot towards bolstering key economic sectors through increased lending and a strong digital push.

In a statement accompanying the full-year results, chief executive officer Mr Tafara Mushoriwa said the bank had expanded its lines of credit to US$50 million, targeting strategic sectors such as manufacturing, mining, tourism, and agriculture.

"This aggressive loan growth aligns with our broader mission of enabling sustainable economic activity," said Mr Mushoriwa. "We have deliberately expanded our credit capacity to provide tailored, market-relevant solutions."

The expansion of the loan book helped propel the bank's net operating income up by 26 percent to ZWG1.3 billion. This was attributed to increased customer activity and broader use of digital banking channels, even amid headwinds such as fee caps, local currency devaluation, and a dip in foreign currency trading volumes.

Despite these pressures, First Capital Bank on-boarded more than 70,000 new customers in 2024, with digital platform adoption reaching 80 percent — a sign of strong traction in its digital transformation strategy.

Chairman Mr Patrick Devenish acknowledged a 12 percent drop in earnings per share to ZWG16.51 cents, but noted the bank's fundamentals remain solid. Operating profit after tax stood at ZWG356.8 million, slightly down from ZWG403.2 million the previous year.

"While the macroeconomic landscape presented challenges, our core capital rose 19 percent to US$61 million — more than double the regulatory minimum," said Mr Devenish. "Our capital adequacy ratio of 29 percent and liquid assets ratio of 53 percent position us well for continued growth."

The bank's board declared a final dividend of US$0.315 cents per share, bringing the total payout for the year to US$0.661 cents per share.

Operationally, 2024 marked a "pivotal shift" in the bank's transformation, according to Mr Mushoriwa, who highlighted improvements in governance, decision-making agility, and cost structures. While the cost-to-income ratio climbed to 63 percent, this was largely attributed to the short-term costs of business realignment.

"Costs will normalise as the benefits of our transformation are realised," he said.

Importantly, asset quality improved during the year. The loan loss coverage ratio dropped to two percent from five percent in 2023 — a development the bank attributed to stronger loan monitoring and improved underwriting practices.

Looking ahead, Mr Devenish was cautiously optimistic, pointing to a projected six percent GDP growth in 2025, supported by gains in agriculture, mining, tourism, and overall fiscal stability.

"Our focus going forward is to invest in SME banking and digital infrastructure to support inclusive growth," he said. "We are building a resilient institution that drives value for both the economy and our shareholders."

With a strengthened capital base, improved risk management and an expanded customer base, First Capital Bank appears well-positioned to play a leading role in Zimbabwe's economic resurgence.
- the herald

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