By ETimes
HARARE – First Mutual Holdings Limited says the strategic presumptions regarding the economic environment’s outcome have mainly not altered despite policy measures instituted in the first half of 2023 meant to stabilise the economy.
Although there was some hope at the start of the year due to slowing inflation and a steady exchange rate in the last quarter of 2022, things started to go south in the second quarter of 2023.
Market turmoil caused the official exchange rate, which was 671 to the US dollar at the start of the year, to decline and reach 5,700 by the end of June.
Trading, especially in local currency, became nearly difficult as prices increased daily.
“The strategic assumptions for the outturn of the economic environment have remained largely unchanged however policy fluidity may lead to temporary negative outcomes during the realignment period,” Amos Manzai, group chairman, said in a statement accompanying the results.
Lacks of foreign currency persisted, and the foreign auction platform’s backlog persisted with distribution occurring days after the allocation.
“With that background, the various business units within the group will deploy their strategies accordingly and adjust as appropriate to new policy measures but maintaining the aim to achieve sustainable real growth into the future.”
To protect and increase the group’s net assets, he said FMHL will continue to explore value-enhancing strategies, including real estate investments.
The group recorded a profit for the period of $386.4 billion, which represented a 19,409% increase relative to the prior year, underpinned by increases in rental income, net fair value gains in investment properties and listed equities.
The group’s total assets rose 125% to $1.4 trillion in inflation-adjusted terms and 591% to $1.3 trillion in historical cost terms compared to 31 December 2022.