- Total income jumped by 39% to ZW$58 billion
- Foreign currency exchange gains soared by 798% during the quarter
- After tax profit of ZW$10.8 billion was attained
Harare- Financial services giant, First Mutual Holdings Limited has reported a 39% income jump to ZW$58 billion during the third quarter ended 30 September 2022 from ZW$42 billion recorded in the 2021 comparative period.
The group’s trading update for the period under review shows that major contributing factors were high net premium earned, fair value gains on investment property and foreign currency exchange gains.
Foreign currency exchange gains peaked to ZW$3 billion from ZW$116 million in 2021’s third quarter, translating to a 798% jump while net premium earned climbed by 58% to ZW$39.3 billion from ZW$24.9 billion with fair value gains on investment property accelerating by 221% to ZW$21.8 billion from ZW$6.8 billion.
Interest expenses eased to ZW$174 million from ZW$352 million in 2021 with finance costs almost doubling from ZW$5 million to ZW$10 million. Resultantly, total expenditure for the period registered a mild growth from ZW$36 billion to ZW$42.7 billion during the period.
Income tax expenses were up by 73% to ZW$4 billion from ZW$2 billion to ZW$4 billion.
As a result, profit for the period was firmer at ZW$10.8 billion from ZW$3.2 billion recorded in 2021. This translated to a 238% uptick.
Meanwhile, total asset grew up by 20% to ZW$137.8 billion from ZW$115 billion against liabilities of ZW$41 billion, placing the group in a solid financial position as far as going forward is concerned.
“This increase to assets was attributable to increases in the fair value of the investment properties and the revaluation of the foreign currency denominated assets, predominantly cash and cash equivalents and premium receivables,” the group said in a trading update.
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