Malawi: FMB Group Reports U.S.$21 Million Profit

FMB Capital Holdings Plc (FMBCH), the holding company for First Capital Bank operations in Africa has posted an after-tax profit of US$ 21.3 million for the year ending December 2020 coming from a loss of US$18.6 million in the previous year.

The Group's subsidiary banks located in Botswana, Malawi, Mozambique, Zambia, and Zimbabwe had a successful year with impressive organic growth due to the Group's business model, which is built for strong and sustainable performance, said the group in a statement.

The group said its combined Net Profit before Tax for the 2020 full year grew to US$35,5 million before tax.

"The company's financial performance in 2020 was robust as we made significant progress in growing and optimizing our Group's operations. Despite the challenges from the Covid-19 pandemic and flow on to a slowdown in economic activity, we remained not only open for business but continued with even greater resolve to offer and deliver new and innovative digital and customer service enhancements" said Mahendra Gursahani, Interim Group Managing Director for FMBCH.

In the period under review Net Interest for the Group grew by 18% to US$65,7 million while Non-Funded Income rose by 21% to US$61,5 million from US$50,7 million in December 2019. Total Income improved by 19% to US$127.3 million whilst Operating Expenses decreased by 7% to US$79.7 million. Total Assets increased by 2% from US$1.05 billion to US$1.07 billion.

"The performance of the Zimbabwe operations was the most impressive success story for the period. Improved economic stability in the country, coupled with our focused business growth interventions, saw the negative performance figures of 2019 (US$29.5 million loss) transforming into a profit of US$4.7 million in 2020," said Gursahani.

"We are making good strategic progress through disciplined emphasis on our Performance, People and Purpose priorities. Our expectations for the Group in 2021 are positive although we remain cautious of the Covid-19 pandemic which has caused economic uncertainty, not only in the markets that we operate in, but globally as well."

"Our focus as a Group remains on delivering premium value for our customers, employees, and shareholders. We will continue to innovate and evolve our operating model to be more flexible and provide our clients with a banking experience that truly meets their financial aspirations. We therefore look forward to executing at an encouraging pace and momentum as we optimize our cost structures, increase our liquidity, and strengthen our balance sheet, adding value to our Group and valued stakeholders" explained Gursahani.

In 2020 FMBCH celebrated its 25-year milestone in business after being granted the first private sector commercial banking licence in Malawi, opening the doors of the first branch on 26 June 1995.

"Over the years the Group acquired banks in adjacent SADC countries and today, it is a strong regional bank with a solid track record of financial strength and stability. Currently the Group has over US$ 1 billion in assets, 1500 employees and serves the financial needs of over 800 000 customers," said Gursahani.

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