- Revenue Surge: Total income up at ZWG 2.1 billion, despite exchange losses
- Operational Profit:ZWG 1.4 billion operational profit, driven by growth in net interest income and insurance services
- Dividend Payout: Proposed 0.25 US cents per share interim dividend, payable on October 7, 2024
Harare- FBC Holdings’ total income has surpassed ZWG2 billion in the half-year to June 2024 despite experiencing a currency carnage in the first quarter.
The group reported ZWG2.1 billion during the period under review despite incurring a monetary loss of ZWG774 million.
“The monetary loss reflects the impact of the hyperinflationary environment on the Group’s net financial assets, which subsisted during the year’s first quarter.
“Following the implementation of Zimbabwe Gold, exchange rates stabilised, and inflation levels significantly reduced,” said group chairperson Hebert Nkala in a statement accompanying the half-year financials.
However, despite the group lauding the stability in the second quarter, the ZiG lost its value in these three respective months by 75% meaning it also contributed largely in narrowing the operating profit.
The Group achieved an operational profit of ZWG1.4 billion, weighed down by a monetary loss of ZWG774 million.
However, total income of ZWG2.1 billion was recorded for the period, with core revenue streams of net interest income and insurance services experiencing growth and increased contribution.
Net interest income and related rose to ZWG373 million from ZWG255 million while net fee and commission income was at ZWG204 million from ZWG229 million.
Other income, which comprises net foreign currency trading and dealing income, net gains from financial assets, and fair value gains on investment property, experienced a significant decline compared to the same period last year.
This was largely due to the local currency’s stability, the ZWG, following its introduction in the second quarter of the year on 5 April 2024.
There was general stability in the Group hedging asset prices in the second quarter of the year, and this weighed down our total income compared to the same period last year.
Operating costs for the period under review were ZWG659 million driven by the mixed macroeconomic conditions during the first half of the year.
“Inflationary trends were experienced during the first quarter. However, there was relative stability in the second quarter of the year, which improved our cost management.”
The Group’s balance sheet strengthened, with total assets reaching ZWG9.99 billion, buoyed by the acquisition of FBC Crown Bank Limited, formerly Standard Chartered Bank Zimbabwe.
Shareholder funds increased by 31% to ZWG2.4 billion from ZWG1.8 billion as of 31 December 2023, reflecting the Group’s improved financial performance and capital position.
The group proposed an interim dividend of 0.25 US cents per share. This dividend will be paid out on or about 7 October 2024. The Group is committed to provide shareholders with a fair return on their investment, while also retaining resources to support future growth opportunities.
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