Almot Maqolo, Staff Writer 
FBC Holdings’ (FBC) say its loan book grew by 228 percent to $1,5 trillion during the first six months of 2023.
In a statement accompanying results, the financial services group’s chairman, Herbert Nkala said banking subsidiaries’ focus was supporting customers across major sectors of the economy.
“Efforts are also underway to mobilise funding at an affordable cost through lines of credit and other institutional depositors and investors,” he said.
Meanwhile, the group’s inflation-adjusted income was up by 318,88 percent to $853,97 billion from $203,86 billion in the comparative period. This was attributed transactional, investment and hedging activities.
“Over 80 percent of the group’s assets and core revenues are in foreign currency and this position is expected to subsist until the end of the year.”
“Net interest and related income at $63,4 billion was consistent with the general lending activities across all lending portfolios,” Nkala said.
“Over 80 percent of the group’s assets and core revenues are in foreign currency and this position is expected to subsist until the end of the year.”
FBC’s push for innovation and digitisation resulted in net transactional sales of $56,9 billion for the six-month period ending June 30, 2023.
“The group continues to invest in digital platforms and channels to widen its product offering and enhance customer convenience in line with changes in the technological space. Automation and digitalisation initiatives are being pursued to lower the cost to serve our customers,” he said.
Inflationary trends and currency rate changes contributed to a portion of the $360,7 billion in total other operating expenditures for the period under review. With an impairment allowance of $76,2 billion during the period under review, the group has continued to be conservative with its provisions.
The group’s balance sheet closed the period at $2,9 trillion, representing a growth of 180 percent from 31 December 2022 position.
“Focus remains on investing in assets less impacted by currency and inflation developments, to preserve capital whilst concurrently providing a base for underwriting additional business,” Nkala said.
The durability of the group’s diverse business model and capacity to adjust to the difficult environment are shown in its achievement of a profit before tax of $427 billion and a profit after tax of $366 billion in the first half of 2023. FBC’s cost-to-income ratio stood at 51 percent.
The chairman said fiscal and monetary policies implemented in the first half of the year were effective in reducing inflation and speculative pricing tendencies.
“It is our expectation that authorities will ensure that the policies in place will address some of the economic challenges whilst at the same time creating an environment conducive for economic growth,” he said in his outlook. newsdesk@fingaz.co.zw
