By ETimes
HARARE – In a year marked by economic uncertainties and evolving regulatory landscapes, FBC Holdings (FBC) emerged with commendable financial results for the full year ending December 2023.
Chairman Herbert Nkala, in a statement released alongside the financial report, highlighted the Group’s resilience and strategic adaptability in navigating the turbulent operating environment.
“Inflation Adjusted Notwithstanding the challenges faced in 2023, FBC Holdings achieved a commendable set of financial results,” stated Nkala. “The Group’s profit before tax, adjusted for inflation, was ZWL403.5 billion, which represents a 255% increase from ZWL113.7 billion recorded in the previous year.”
The standout performance was primarily attributed to robust growth in total income coupled with effective cost containment measures. FBC Holdings reported a remarkable 443% surge in profit after tax to ZWL327.4 billion, propelled by a 138% increase in total income to ZWL1.3 trillion. This growth was fueled by all revenue streams except for insurance and property sales.
Net interest income soared by 69% to ZWL239.8 billion, supported by a substantial 121% surge in loans and advances, now predominantly denominated in USD. Furthermore, net fee and commission income registered a notable 179% growth to ZWL231.5 billion, driven by increased transactional volumes across digital delivery channels.
However, challenges persisted in the insurance sector, with FBC’s subsidiaries reporting an insurance service loss of ZWL12.4 billion. This loss was attributed to a persistent mismatch between premium recording, collections, and foreign currency-indexed claims.
Despite the hurdles, FBC Holdings strengthened its financial position, with its statement of financial position reaching ZWL3.4 trillion, anchored by a significant increase in loans and advances. Shareholders’ funds also grew substantially by 141% to ZWL706 billion, reflecting increased profitability.
In the broader financial services industry, market stability prevailed throughout the year, albeit with tightening liquidity as elections approached. Nonetheless, the sector invested in hedging strategies, resulting in increased revaluation and foreign exchange gains. The banking sector witnessed substantial growth in aggregate loans, while maintaining favorable asset quality well below regulatory thresholds.
Regulatory developments also shaped the landscape, with the introduction of the National Financial Inclusion Strategy (NFIS) II and the Insurance (Amendment) Regulations, 2023. These initiatives aimed to promote inclusivity and manage high-premium debtors while enhancing regulatory compliance within the insurance sector.
Regarding the property market, FBC Holdings observed resilience in certain sectors despite prevailing economic challenges. The stabilization of the multi-currency regime towards the end of the year contributed to a slight growth in residential construction, although sales remained subdued due to foreign currency payment requirements.
Despite market shifts towards suburban office spaces, FBC Holdings remained committed to supporting national housing initiatives. The Group contributed to community development by providing rental units and constructing townhouses, underscoring its dedication to societal advancement.
Looking ahead, Nkala reaffirmed FBC Holdings’ commitment to preserving shareholder value and fostering sustainable growth amidst evolving market dynamics. As the economic landscape continues to evolve, FBC Holdings remains poised to adapt and thrive in the face of challenges, driven by its strong financial performance and strategic foresight.