Omega Ukama 
FIRST Capital Bank (FCB), formerly Barclays, says its inflation adjusted income grew by 35 percent to $2,3 billion during the half-year to June 30, 2021, driven by a 76 percent increase in interest income.
The bank said its interest income for the period was $924 million compared to $524 million in the prior comparable period.
In a statement accompanying the institution’s results, board chairman Patrick Devenish said the “strong performance was underpinned by loan book growth from the second half of last year to the current period coupled with transactional volumes and fee increases”.
The bank’s loan book grew by 55 percent to $4,5 billion during the period boosted by an increase in foreign currency loans.
“During the period under review, the bank’s total deposits have, in historic terms, grown to $9,8 billion, an 11 percent increase from $8,8 billion recorded in December 2020.
“Foreign currency loans grew to US$18,7 million in June 2021 from US$1 million in December 2020, driven by the growth in foreign currency deposits,” managing director, Ciaran McSharry, said.
The bank’s cost-to-income ratio improved from 66 percent to 56 percent, also due to “a combination of the growth in loans and transactional income”.
“We are optimistic about the economic environment and look forward to a second half characterised by further growth in loans and deposits in both local and foreign currency whilst maintaining a quality loan book,” McSharry said.
Despite the improved income, the bank’s profit for the period was $166 million, down from $423 million in the prior comparable period.
The deterioration in profitability was due to $141 million in property revaluation losses, as well as a $155 million loss from the bank’s joint venture with Barclays Pensions Fund ― Makasa Sun ― which owns a hotel in the tourist resort town of Victoria Falls.
The bank owns a 50 percent investment in Makasa Sun.
McSharry said while there remains considerable uncertainty on how the rest of the year will unfold, the bank is confident of its ability to continue its digital transformation journey.
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