• Fri. Apr 19th, 2024

First Capital says new head office capex is ‘a double-digit amount in USD’

ByETimes

Oct 16, 2023

By ETimes

HARARE – VFEX-listed First Capital Bank expects the construction of its new head office in Borrowdale to be completed within a year’s time, saying that it is being funded from internal resources.

A number of financial institutions have relocated from Harare’s central business district to the wealthy area of Borrowdale to set up their head offices in order to avoid crowding and traffic.

Without mentioning the total cost of the project, Managing Director Tapera Mushoriwa told the media on the sidelines of the ground-breaking ceremony that the money would be channelled through a phased approach.

“It’s approximately within a year with a capex range of, I think, quite an amount; it’s a double-digit amount in US dollars. This is organic from retained earnings,” he said.

“So, it will be in pieces; it’s not like we have put the whole amount, but we will be setting those amounts. We have got a rolling cash flow plan that we have put in place.”

According to the bank, this modern and environmentally friendly building also presents an opportunity to provide a world-class working environment for its staff, who are instrumental in driving the business.

First Capital Bank reported a half-year profit after tax of US$4.3 million which represented a 232% rise from the 2022 comparative.

The group’s performance was weighted on by a loss of US$3.8 million stemming from a joint venture investment.

Rising income was supported by 23% growth in net fees and commissions to US$11.5 million, which the group attributed to several initiatives to increase USD transaction services for customers.

The group also expanded to offering vehicle insurance and licensing services to its customers.

Net interest income increased by 35% to US$11.6 million while other income declined by 14% to US$9 million.

The group’s operations generated a cash flow deficit of US$26.8 million, which saw an overall decline of US$24.5 million to its cash position.

Total assets declined by 12% to US$233.94 million, with cash holdings of US$53.5 million, and investment securities of US$16.1 million. Loans and advances contributed US$79.5 million after increasing by 21%.

Also read: https://etimes.co.zw/analysis-newly-vfex-listed-first-capital-sees-after-tax-profits-rise-to-us4-3-million/

By ETimes

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