FBC Holdings has reported a robust financial performance for the third quarter ending September 30, 2024, showcasing the group’s resilience and ability to navigate a challenging economic environment.
Despite persistent macroeconomic headwinds, the ZSE-listed banking group posted impressive figures, highlighting its strong position in the financial services sector.
For the third quarter of 2024, FBC Holdings recorded a total income of ZiG 4.9 billion, primarily driven by strong net foreign currency dealing and trading income.
The group’s profit before tax stood at ZiG 2.1 billion, with a profit after tax of ZiG 1.9 billion, underscoring its capacity to generate consistent returns despite fluctuations in the broader economic landscape.
The company’s operating expenses were effectively managed, coming in at ZiG 1.97 billion, which led to an impressive cost-to-income ratio of just 40 percent. This efficient cost management highlights FBC Holdings’ ability to operate profitably while maintaining a disciplined approach to expenditures in a volatile operating environment.
As of September 30, 2024, the group’s total assets were valued at ZiG 17.3 billion, while shareholder funds amounted to ZiG 3.9 billion, reflecting a strong financial position and solid capital base.
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Tichaona Mabeza, the company secretary, attributed the group’s strong performance to the stability created by the introduction of the Zimbabwe Gold (ZiG) currency in April 2024.
Despite some exchange rate volatility and inflationary pressures during the quarter, Mabeza highlighted the positive impact of recent monetary policy interventions, which have contributed to a more stable business climate.
“The operating environment has been relatively stable since the introduction of Zimbabwe Gold in April 2024. Although we did experience some challenges with exchange rate fluctuations and inflation, the broader economic framework and policy measures have provided a conducive environment for businesses to operate,” said Mabeza.
A key factor behind FBC Holdings’ resilience is its diversified business model, which spans various sectors of the financial services industry.
This diversification acts as a hedge against market fluctuations and systemic risks, allowing the group to absorb shocks from external economic pressures.
“We have a diversified portfolio that helps mitigate risks and smoothens out volatility,” Mabeza explained. “Our diversified financial service clusters not only shield us from market fluctuations, but also strengthen our ability to manage downside risks and create value for our shareholders.”
Additionally, the group’s long-standing relationships with clients have provided a stable revenue base, enabling FBC Holdings to weather economic turbulence and continue to deliver positive financial results.
Despite the group’s strong performance, the Zimbabwean economy continues to face several challenges. Economic growth projections for 2024 have been revised to just 2 percent, as soft commodity prices, except for gold, and the El Niño-induced drought have reduced agricultural output and negatively impacted hydropower generation.
These factors have created additional stress on the domestic economy, though FBC Holdings has managed to remain resilient. However, Mabeza remains optimistic about the group’s prospects, emphasizing the strength of its business model, management team, and ability to adapt to changing market conditions.
“While the operating environment still presents macroeconomic challenges, we are cautiously optimistic. Our diversified business model, experienced leadership team, and strong client base provide a solid foundation for navigating these complexities. We remain confident in our ability to continue delivering sustainable growth in the long term,” said Mabeza.
Looking ahead, FBC Holdings is focused on adapting to evolving economic conditions while maintaining a sharp focus on maximizing shareholder value. The group remains committed to implementing proactive strategies that capitalize on opportunities in the financial services sector.
“We will continue to pursue strategies that create value, ensuring we remain well-positioned to take advantage of emerging opportunities in the market,” Mabeza concluded.
“With stability in exchange rates and inflation dynamics showing signs of improvement, we are confident in our ability to maintain our growth trajectory, leveraging our strong asset base and strategic focus.”
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