- Total income surpassed ZWL1 trillion and profits of approximately ZWL500 billion
- The Group reported a remarkable 138% growth in total income, driven by expansion in all revenue streams
- FBC successfully acquired Standard Chartered Bank's operations in Zimbabwe, outbidding competitors from Guinea and Nigeria, with the complete takeover expected in the second half of the year
Harare - FBC Holdings, a prominent blue-chip company listed on the Zimbabwe Stock Exchange (ZSE), has reported a total income of ZWL1.3 trillion, representing a 138% increase from ZWL533 billion in the previous year. This growth was attributed to the expansion across all revenue streams, from the insurance, banking, and to property sales.
As a result of the significant growth in total income, and revenue reaching ZWL$500 billion, it achieved a Profit After Tax (PAT) of ZWL327.387 billion despite operating in a complex environment.
FBC Holdings experienced significant growth in its flagship banking sector, particularly in aggregate loans.
The quality of assets remained favorable, with an asset quality ratio of 3.5%, well below the regulatory threshold of 5%.
The Group's net interest income witnessed a notable surge, rising by 69% to reach ZWL239.8 billion, compared to ZWL142.2 billion in 2022.
This increase was supported by 121% growth in loans and advances, which closed the year at ZWL1.6 trillion.
In response to the increased usage of multiple currencies for local transactions, the Group highlighted that a significant portion of the loans were denominated in US dollars.
"The loan book is now predominantly US dollar related," stated Herbert Nkala, the Group's chairperson.
To date, FBC has successfully acquired the operations of Standard Chartered Bank in Zimbabwe, outbidding competitors from Guinea and Nigeria.
The complete takeover of the business is expected to occur in the second half of the year. The Group plans to operate the acquired bank as a separate entity and is currently in the process of obtaining necessary approvals for its new name.
This will add more revenue to the banking sector and the Group as a whole, which is already breaking profitability records.
FBC Bank is the fourth largest bank in Zimbabwe based on its loan book, with major shareholders including NSSA (35%), Public Service Fund (11%), and John Mushayavanhu, the former CEO and current RBZ Governor, who owns a 7% stake through his Tirent Investments.
During the period, the Group expanded its presence in the property market by constructing over 300 rental units at Fontaine Ridge (Harare), Eastlea (Zvishavane), and thirteen townhouses in Glen Lorne.
Microplan Financial Services, a subsidiary of FBC Holdings, also experienced substantial profitability growth, with profits surging from ZWL1.6 billion to ZWL9.01 billion, representing a remarkable growth of 463%.
This increase was due to the heightened demand for loans from micro, small-to-medium enterprises, as well as low-income households seeking additional income sources.
Net income improved from ZWL7.8 billion to ZWL66.3 billion, primarily driven by robust growth in vendor financing partnerships across the information, communications, technology, solar, and agriculture sectors.
Notably, Microplan Financial Services' net interest income for the year reached ZWL61.4 billion, accounting for 93% of its net income.
The microfinance sector plays a crucial role in Zimbabwe's aspirations of becoming an upper-middle-income society by 2030, as it provides essential financial services to low-income individuals, marginalized communities, and micro and small enterprises.
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