Profit-after-tax for First Capital Bank (FCB) grew by 39 percent in the first half year ended June 30 2021 to K5.4 billion from K3.9 billion in 2020, the bank’s published financial statement shows.
According to the statement co-signed by FCB Chairperson Hitesh Anadkat and Chief Executive Officer Jaco Vilijoen, the rise in profitability is despite a challenging business environment stemming from the Covid pandemic.
The statement adds that the bank’s total assets grew by 19 percent on account of utilisation of credit lines available from financial institutions and growth in deposit base which grew by 20 percent during the period.
“It remains challenging to contain costs in the current macroeconomic environment but overall operating expenditure is in line with our expectation in the period,” the statement reads.
On outlook, the bank indicates that there is uncertainty on the performance of the economy in the second half due to numerous reasons including currency remaining under pressure due to higher appetite for the hard currency from importers.
The financial institution adds that there is also a heightened risk of periods of insufficient liquidity in the banking sector in the coming months.
“There is uncertainty of economic recovery in the medium term and, as such, the bank will continue to conservatively manage our balance sheet and remain averse to excessive credit risk,” it reads.
The banking sector is one of the sectors which have been seen to be resilient to the unfavourable business environment brought about by the pandemic.
Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk.
He is however flexible as he also writes about current affairs and national issues.