Z$ devaluation hits First Capital capitalisation

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FIRST Capital Bank (First Capital) suffered a US$30,4 million hit on its core capital books in the first half year as a result of the rapid devaluation of the domestic currency.
In a statement accompanying the bank’s reviewed financial results for the half year ended June 30, 2022, First Capital board chairman Patrick Devenish said the pressure on US dollar denominated core capital was increasing.

“The rapid devaluation of the ZW exerted pressure on capital resulting in the bank’s US$ denominated core capital reducing from US$74,8 million as at December 31, 2021 to US$44,4 million as at June 30, 2022,” he said.