First Capital Bank Declares 5 Cents Per Share Dividend

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By Alois Vinga

TOP financial services provider, First Capital Bank Limited Zimbabwe, has declared a 5 cents per share dividend payout which will be paid out before the end of September 2021.

In a recent update, the firm’s acting company secretary, Sarudzai Binha said the payouts will be paid out within the next two weeks.

“Notice is hereby given that the board has declared an interim dividend of 5 cents per share for the year ended December 31 2021. The dividend will be paid per following timelines, Trade cum-dividend 14 September 2021, trading Ex- dividend 15 September 2021,” she said.

She said Withholding Tax will be deducted at applicable rates and said that payments to foreign shareholders will be subject to exchange control approval and payment guidelines for foreign remittances.

The development comes shortly after the bank posted an operating profit of $ 669 million compared to $97 million in 2020 in inflation adjusted terms in the first half of 2021.

In historic reporting terms the operating profit is $935 million compared to $122 million in 2020 attributed to progress on the execution of the group’s corporate-led growth strategy underpinned by stable digital platforms.

In the period under review First Capital Bank maintained a quality loan book with a loan loss ratio of 0.6%, NPL ratio of 0.14% with market average at 0.3%. Impairment coverage was at 1.8%. The strong operating profit performance was as a result of loan book growth and increased transactional volumes.

The bank remains a going concern with a very solid loan book having achieved the minimum capital requirement of US$ 30 million as required by 31 December 2021, allowing the payment of a dividend for the period.