Harare – Malawi-headquartered banking group FMBcapital Holdings said on Wednesday it posted a US$21,3 million profit after tax during the year ended December 31, 2020, from a US$18,6 million loss in 2019.
The group has a footprint in five SADC economies – Botswana, Malawi, Mozambique, Zambia and Zimbabwe.
Interim MD Mahendra Gursahani said the group’s performance was underpinned by organic growth and a solid business model, “which is built for strong and sustainable performance”.
“The company’s financial performance in 2020 was robust as we made significant progress in growing and optimising our group’s operations,” Gursahani said in a shareholder update.
“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” he said.
Net interest income for the group grew by 18 percent to US$65,7 million. Non-funded income rose by 21 percent to US$61,5 million from US$50,7 million in December 2019.
Total income improved by 19 eprcent to US$127,3 million whilst operating expenses decreased by 7seven percent to US$79,7 million.
Gursahani said total assets increased by two percent 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.
“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 optimise our cost structures, increase our liquidity, and strengthen our balance sheet, adding value to our group and valued stakeholders” said Gursahani.