FBC posts ZWL6.3 billion income

Author Name
Rufaro Checha
Author
Analysis 6 days ago
  • Total income grew by 59% to ZWL6.3 billion
  • PBT increased eight fold to ZWL2.7 billion
  • Group’s statement of financial position increased by 19% to ZWL29.5 billion

HARARE – FBC Holdings limited, riding on a strong growth in net trading income and net interest income, reported satisfactory third quarter earnings to 30 September 2020 (Q3 2020) despite challenges obtaining in the operating environment chief among them COVID-19 and depreciating local currency.

The Group recorded a 59% growth in total income in inflation adjusted terms to ZWL6.3 billion, compared to same period last year. Profit before tax increased eight fold to ZWL2.7 billion.

Administrative expenses for the period were up 33% to ZWL3.2 billion on the back of a devaluation of the local currency.

Company Secretary Tichaona Mabeza highlighted that the Group’s statement of financial position as at 30 September 2020 increased by 19% to ZWL29.5 billion from the 31 December 2019 position of ZWL24.8 billion.

“Equity attributable to shareholders of the parent company increased by 52% to ZWL6.1 billion from ZWL4 billion as at 31 December 2019, supported by improved retained revenue reserves”, he said.

The Group enhanced its digital offerings during the period under review with a number of exciting digital onboarding capabilities introduced in its targeted niche markets.

The Group launched Noku, a smart Digital Assistant equipped with the capabilities to assist clients in accessing banking and insurance services on WhatsApp at any time of the day. FBCH also introduced a WhatsApp capability on YAKO, a digital insurance onboarding product which allows vehicle owners to purchase Third Party Motor Insurance instantly using a mobile device.

“Over the three months period, the above innovations resulted in our banking and insurance subsidiaries improving the pace of customer acquisition,” said Mabeza.

On the outlook the Group said, “The emergence of a second wave of Covid-19 pandemic in countries which are our major trading partners and source of tourists for the tourism sector will no doubt impact negatively on the recovery prospects for our economy. We nevertheless remain cautiously optimistic that normalcy will return, as we continue to activate, review and strengthen our Business Continuity and Disaster Recovery Plans.”

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