FBC Holdings records $8.1bn profit after tax

FBC Holdings Limited recorded $12.2 billion profit before tax in the six months to June 2022 with the bank attributing the positive performance to enhanced adaptation, resilience and tenacity in a volatile operating environment.

In a financial statement for the six months period, group chairman Mr Herbert Nkala said the bank’s profitability was achieved on the back of a 212 percent improvement in total income to $43.2 billion, 68 percent of which was in favour of the group’s hedging and investment strategies.

He added that 32 percent was derived from core business revenue lines.

“FBC Holdings Limited achieved a profit before tax of $12.2 billion and an after tax profit of $8.1 billion, which is a testimony to the group’s adaptation, resilience and tenacity in a volatile operating environment,” said Mr Nkala.

“FBC Holding’s profitability was achieved on the back of a 212 percent improvement in total income to $43.2 billion, 68 percent of this amount was in favour of the group’s hedging and investment strategies and 32 percent was derived from core business revenue lines.”

The board chair said net interest and related income improved by 89 percent to $7.3 billion, leveraging on the group’s higher foreign currency lending portfolio proportion.

“Loans and advances totaling $68.8 billion improved by 34 percent compared to the audited position as at 31 December 2021,” said Mr Nkala.

“Net fee and commission income registered a growth of 44 percent to $4.7 billion, largely emanating from the group’s digital thrust, which has positively impacted our payments and processing systems.”

The group’s net earned insurance premium of $1.9 billion increased by a marginal five percent compared to the prior year, reflecting subdued consumer capacity in the face of declining disposable incomes.

The use of multi-currencies in the economy has provided an opportunity for the group’s insurance subsidiaries to increase underwriting in foreign currency.

As at 30 June 2022, FBC Holding’s total asset was at $186.2 billion, representing a 34 percent increase on the 31 December 2021 inflation adjusted figure of $138.6 billion.

Balance sheet growth was largely driven by a 22 percent increase in deposits from $81 billion to $98.7 billion.

Commenting on the operating environment, Mr Nkala said despite the exchange rate and inflation-induced weaknesses, positive economic milestones have been noted in the domestic economy and these include increased foreign currency receipts, restraint on reserve money growth and a sustained current account surplus and high infrastructure investments.

Money. Image taken from Shutterstock

“Resultantly, economic growth prospects have remained positive at a projected 4.6 percent albeit a decrease from the initial projection of 5.5 percent.

“The economic growth is anchored on increased activity in the mining sector (9.5 percent), construction sector (10.5 percent), accommodation and food services sector (50 percent).”

Mr Nkala said the group is optimistic that recent policy pronouncements by the Government, together with the requisite industry support, will manage to stabilise the inflation and exchange rate environment and sustain positive economic growth.

He noted that the Government continues to implement measures aimed at addressing speculative behaviour and exchange rate manipulation.-chronciel.o.zw