Zimbabwe: First Capital Bank's U.S.$ Deposits Surge to $3.7b

LEADING financial services provider, First Capital Bank's (FCB) sound management practices coupled with the obtaining exchange rate stability has prompted its foreign currency deposits surging to an equivalent of $3.7 billion.

Last year, the Reserve Bank of Zimbabwe (RBZ) introduced the foreign exchange auction system which has been hailed by companies for bringing about exchange rate stability and restoration of the banking public's confidence to deposit their foreign currency.

In a recent update, FCB managing director Ciaran McSharry said the financial institution saw foreign currency deposits registering significant growth.

"Foreign currency deposits grew by $3.7billion however, foreign currency loans declined in value due to the repayments of high value corporate loans held prior year, although volumes increased compared to prior year," he said.

The bank's total deposits grew by 331% driven by a 298% growth in local currency deposits to $4billion.

These local currency deposits were deployed into loans, which grew by 279% to $2.3billion, a 63% loan to deposit ratio.

Last month the RBZ recorded foreign currency deposits surge to an equivalent $102 billion across the banking sector as at November 30 2020.

The figure rose from $92 billion recorded in the month of November 2020 confirming sustained growth.

A similar growth pattern was observed in the previous month of October 2020 where foreign currency component of total deposits increased from $11.16 billion in October 2019 to $98 billion.

Over the past year, the bank made significant system investments which have resulted in increased platform stability, creating a springboard for more innovative product developments and seamless customer experience.

Within the Retail Banking space, the bank introduced its first money transfer agency partnership with Ria Financial Services, offering customers a safe and secure channel to send and receive money internationally.

"Our strategic partnership with Zimnat Insurance saw the launch of an inflation sensitive funeral plan which has helped customers to retain value. ATM services were resuscitated to allow customers to safely access cash services, thereby reducing footfall in branches," McSharry said.

On the commercial front, product development was driven by customer feedback and the evolving needs of corporates and SME businesses among others.

More From: New Zimbabwe

Don't Miss

AllAfrica publishes around 900 reports a day from more than 130 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.