First Capital Bank reported a 58% increase in revenue in the third quarter ended September 30, driven by returns to growth in the loan portfolio and increased transaction volumes, reports 263Chat Business.
Revenue reached ZWL $ 1.9 billion during the period, up from ZWL $ 1.2 billion previously earned, company secretary Violet Mutandwa said in the latest business update.
“This increase is largely due to a ZWL $ 657 million increase in local currency loans, as well as increased transaction volumes and inflation-adjusted price increases,” he said. she declared.
Operating costs increased 69% in inflation-adjusted terms, from ZWL $ 766 million to ZWL $ 1.3 billion.
This is mainly due to hyperinflation in the economy which saw the inflation rate reach record highs of 837% in July, year-on-year.
After-tax operating profit increased 100% from ZWL $ 188 million to ZWL $ 376 million. The growth of the result excludes the impact of the real estate revaluation.
“Balance sheet growth was driven by local currency deposits which increased 73% from ZWL $ 1.5 billion to ZWL $ 2.6 billion. As a result, loans increased 83% from ZWL $ 779 million to ZWL $ 1.43 billion, ”Mutandwa said.
The operating environment improved somewhat during the quarter under review, as restrictions related to COVID-19 were gradually relaxed, resulting in increased transaction volumes.
However, foreign currency deposits edged up 3%, from $ 61 million to $ 63 million, while foreign currency loans declined significantly due to repayments.
The Bank is optimistic about improving performance in the last quarter, citing growth in deposits.