Africa-Press – Malawi. First Capital Bank (FCB) has posted a profit of K7.4 billion in the six months period ended June 30 2022, a published summary of unaudited consolidated and separate results shown. This represents a 37 percent growth in profit when compared to the K5.4 billion the company posted during the same period last year.
The performance is attributed to the bank’s ability to reduce its total liabilities by 10.5 percent to K284.4 billion in the first half of 2022 from K317.8 billion during the same period last year.
The statement signed by its Chief Executive Officer Spyridon Georgopoulos and Chairman Terence Davidson describes the first six months of 2022 as challenging.
“The headline inflation at 19.1 percent was at the highest point since December 2016. The country continues to experience foreign exchange shortages and high debt levels. The engagements with the International Monetary Fund (IMF) to start the next phase of the extended credit facility have yet to be concluded.
“Notwithstanding the challenges, the bank performed above expectations in the first half of 2022 driven by growth in the quality lending book, close monitoring of operating expenses and recovery efforts of previously impaired loan assets,” the statement reads.
It further says: “Our deposit base continues to grow mainly driven by the current and savings accounts. We closed the period with deposits totalling K204.5 billion, a 26 percent increase year on year, giving us an opportunity to deploy funds in quality lending activities. Net loans and advances grew by 16 percent year on year to close the period at K121.7 billion.”
The bank expects the business environment to remain challenging owing to the recent 25 percent devaluation of the Kwacha and an upward trajectory on food, commodities and fuel prices which will exert pressure on the inflation rate for the rest of the year.
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