First Capital Bank Zimbabwe Limited

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First Capital Bank Zimbabwe Limited (2021-09)
  • First Capital Bank Zimbabwe Limited
  • Year : Sep 2021
3 Tokens
USD 300.00
Summary

The bank has a relatively sound competitive position supported by consistent market shares in both customer deposits and advances. Franchise strength is sound, reflected partly by good customer retention and low cost of funds. Revenue stability and creation is broadly in line with banking sector peers with some reliance on market sensitive income. In the above consideration, GCR also takes into account the risk of value erosion of the net monetary balance sheet and capital as a result of hyperinflation and exchange rate devaluation.

Additional Information

The evolving outlook is premised on the volatile operating environment and monetary policy, exacerbated by hyperinflation creating high likelihood of frequent change on the financial profiles of financial institutions operating therein. In this regard, GCR will increase monitoring and surveillance of rated peers. National scale ratings reflect relativities to the local Zimbabwean peers only. Given the operating environment there is implied volatility in the ratings. A positive or negative ratings movement could follow a change in capitalisation, asset quality or liquidity.

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