First Capital Bank posted a 58 percent jump in income during third quarter ended September 30, on account of returns in registered growth in the loan portfolio and increased transactional volumes, 263Chat Business reports.
Income reached ZWL$ 1.9 billion during the period from ZWL$ 1.2 billion realized previously, said Company secretary Violet Mutandwa in the latest trading update.
“This increase was largely driven by ZWL$ 657 million increase in local currency loans, together with an increase in transactional volumes and inflation adjusted price increases,” she said.
Operating costs increased by 69 percent in inflation adjusted terms from ZWL$ 766 million to ZWL$1.3 billion.
This was mainly due to the hyperinflation in the economy which saw inflation rate reach peak levels of 837 percent in July, year-on-year.
After tax operating profit increased by 100 percent from ZWL$ 188 million to ZWL$ 376 million. The growth in profit excludes property revaluation impact.
“Balance sheet growth was driven by local currency deposits which grew by 73 percent from ZWL$ 1.5 billion to ZWL$ 2.6 billion. As a result loans increased by 83 percent from ZWL$ 779 million to ZWL$ 1.43 billion,” said Mutandwa.
The operating environment somewhat improved during the quarter under review as COVID-19 restrictions were gradually relaxed resulting in increased transaction volumes.
However, foreign currency deposits slightly increased by 3 percent from US$ 61 million to US$ 63 million whilst foreign currency loans reduced significantly due to repayments.
The Bank is optimistic of improved final quarter performance citing growth in deposits.
