FBC Holdings (FBC) witnessed a remarkable 255 percent surge in pre-tax profit for the full fiscal year ending December 2023, reaching $403.5 billion.
This robust performance, amidst challenging economic conditions, underscores the group’s resilience and strategic focus, as highlighted by Group Chairman Herbert Nkala. The substantial profit growth primarily stemmed from a 138 percent increase in total income, reaching $1.3 trillion, driven by growth across various revenue streams except for insurance and property sales.
Notably, net interest income rose by 69 percent to $239.8 billion, supported by a 121 percent surge in loans and advances, predominantly in US dollars. This growth reflects heightened demand for foreign currency-denominated loans due to increased usage of multiple currencies in local transactions.
Furthermore, net fee and commission income soared by 179 percent to $231.5 billion, driven by expanded transactional volumes across digital channels, showcasing the group’s commitment to leveraging technology for revenue enhancement and customer satisfaction.
Despite economic challenges, FBC reported strong financial results, with adjusted pre-tax profit increasing by 255 percent compared to the previous year. However, challenges persisted in the insurance sector, with group subsidiaries recording an insurance service loss of $12.4 billion due to operational inefficiencies.
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Nonetheless, FBC bolstered its financial position, with total assets reaching $3.4 trillion and shareholders’ funds experiencing significant growth, rising by 141 percent to $706 billion.
Mr. Nkala noted the stability in the broader financial services industry throughout the year, despite tightening liquidity before elections. Regulatory developments, such as the National Financial Inclusion Strategy (NFIS) II and Insurance (Amendment) Regulations, 2023, aimed to enhance inclusivity and regulatory compliance within the sector.
Regarding the property market, despite economic challenges, certain sectors exhibited resilience, with a slight growth in residential construction towards the end of the year. FBC Holdings remained committed to supporting national housing initiatives, contributing to community development through rental units and townhouse construction.
Looking ahead, Mr. Nkala reiterated FBC Holdings’ dedication to shareholder value preservation and sustainable growth amid evolving market dynamics. The group remains poised to adapt and thrive, driven by its strong financial performance and strategic foresight.
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