First Capital Bank Limited (FCB) has revealed a 26% increase in adjusted profit after tax in its abridged consolidated financial statements for the year ended December 31, 2023.
The profit reached US$15.4 million, compared to US$12.2 million in the previous year.
An important caveat, however, exists. The abridged statements do not include all the disclosures mandated by International Financial Reporting Standards (IFRS).
Deloitte & Touche, the independent auditor, notes that for a complete picture, stakeholders should refer to the full audited financial statements. The abridged version serves as a summary and lacks crucial details.
“The abridged consolidated financial statements of First Capital Bank Limited do not contain all the disclosures required by International Financial Reporting Standards (IFRS), and the requirements of the Banking Act.
“Reading the abridged financial statements of First Capital Bank Limited and the auditor’s report thereon, therefore, is not a substitute for reading the audited consolidated financial statements of First Capital Bank Limited and the auditor’s report thereon,” the auditors noted.
Despite the abridged format, the report highlights positive performance for FCB. The bank attributes this growth to an expanding customer base, loan book growth, and foreign exchange gains.
Key metrics also reflect a financially sound institution. The core capital increased from US$50.9 million to US$52.5 million, exceeding the regulatory minimum by a comfortable margin.
Capital adequacy and liquidity ratios sit well above regulatory requirements, indicating the bank’s capacity to absorb risks and handle future business.
FCB chairman, Patrick Devenish, acknowledged the challenging global economic climate but expressed cautious optimism for Zimbabwe’s growth prospects in 2024.
He highlighted potential headwinds like the El-Nino weather phenomenon and subdued global commodity prices impacting mining revenue. The recent rapid devaluation of the Zimbabwean dollar adds another layer of uncertainty.
Devenish pledged FCB’s commitment to Zimbabwe, showcasing the construction of a new environmentally friendly headquarters and the strategic listing on the Victoria Falls Stock Exchange (VFEX).
The VFEX listing aims to attract high-quality funding and contribute to the country’s economic development.
“As a growing Bank, to consolidate our commitment to Zimbabwe, we have firmly established our roots and commenced the construction of a Head Office that is inspired by the desire to project our contribution to environmental stewardship.
“Our listing on the Victoria Falls Stock Exchange further consolidates our commitment and positions the Bank strategically to attract high quality funding and make a lasting contribution to the growth of the economy,” he said.