FMB Capital Holdings (FMBCH), the parent company of First Capital Bank, says its regional diversification strategy is bearing fruits, with Zambia, Mozambique and Botswana making good progress in terms of growth.
Speaking on the sidelines of the Malawi Stock Exchange-listed firm’s annual general meeting in Blantyre on Wednesday, FMB Capital Group chairperson Terence Davidson said this is despite continuous challenges on numerous policy changes, macroeconomic uncertainty and lack of business confidence in Zimbabwe.
“Our Zimbabwe operation, acquired from Barclays in 2017, continues to contend with that country’s well-publicised economic challenges which have resulted in severe shortages of foreign currency and spiraling inflation,” he said.
Davidson said profit at First Capital Bank in Malawi fell marginally due to a continued reduction in interest rates, which impacted interest income and higher than normal operating costs incurred because of the extensive one-off rebranding and corporate restructuring exercise. During the year under review, the group registered an 11.5 percent decline in profit before tax from $42.5 million (about K32 billion) to $37.6 million (about K28.5 billion).