FMBcapital Holdings Plc Reports Strong First Half of 2023 with 67% Increase in Profit after Tax, but Outlook for Second Half Remains Challenging
- What is the outlook for FMBCH Group's growth and profitability for the second half of 2023?
- While the first half of 2023 saw strong performance for FMBCH Group, the board anticipates that the second half of the year may not exceed the first in terms of growth and profitability, due to expected global economic slowdown and the challenging growth forecast.
Summary
- FMBcapital Holdings (FMBCH) had a strong performance in the first half of 2023, including robust balance sheet growth across its subsidiaries.
- Key figures for the period include a 25% increase in net interest income and 28% in non-interest income, resulting in total operating income of USD 121 million (26% growth).
- Profit after tax rose by 67% to USD 42 million, with the portion attributable to FMBCH owners reaching USD 30 million (73% growth).
- Loans and advances to customers grew by 12% to USD 700 million, and customer deposits increased 26% to over USD 1.13 billion.
- The credit loss ratio on customer advances increased slightly from 0.5% to 0.94%.
- FMBCH’s Zimbabwe operation switched its currency from Zimbabwe Dollar to USD starting January 2023 due to its listing on the Victoria Falls Stock Exchange.
- The Group continues to focus on growth and diversification, with risk governance being crucial in the allocation of capital and resources.
- Global growth is expected to decline, with the IMF predicting a drop to 3.0% in 2024, making the outlook challenging.
- Interim results were supported by equity investment gains in Malawi and high trading margins in Malawi, Mozambique, and Zimbabwe, which are unlikely to be replicated at the same scale in the remaining half of the year.
- An interim dividend of USD 5,162,325 or 0.21 US cents per share will be paid to shareholders listed in the Register of Members by 10 November 2023.
Useful links
- FMBcapital Holdings Plc (FMBCH.mw) HY2023 Interim Report
- FMBcapital Holdings Plc on AfricanFinancials
- Corporate Website
About FMBcapital Holdings Plc (FMBCH.mw)
FMBcapital Holdings (FMBCH) is the Mauritius based holding company for the FMBcapital Group and was listed on the Malawi Stock Exchange in September 2017 following a one for one share swap with First Merchant Bank of Malawi shareholders. FMBCH has banking and finance operations in Botswana, Malawi, Mozambique, Zambia and Zimbabwe. It is primarily an investment holding company with interests as follows:
- First Capital Bank, Malawi – 100% (established June 1995)
- First Capital Bank, Botswana – 38,60% (established July 2008)
- Capital Bank Mozambique – 70% (acquired June 2013)
- First Capital Bank, Zambia – 49% (acquired June 2013)
- First Capital Bank in association with Barclays – 62% (acquired October 2017)
Through its subsidiaries, FMBCH offers a comprehensive range of financial products and services to both corporate and retail sectors. The Global Credit Rating Co. has consistently given FMB an annual Long Term Rating of A+ and a Short Term Rating of A1 since 2007. FMBcapital Holdings Plc is listed on the Malawi Stock Exchange
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