Income for FBC Holdings Limited has surged by 59 percent notwithstanding the impact of Covid-19 on Zimbabwean businesses and the generally difficult operating environment, the financial institution’s latest trading update has shown.
Hyperinflationary conditions continue to weigh heavily on the Zimbabwean economy, although the country has witnessed a marked reduction in both the year-on-year and month-on-month inflation.
In his trading update for the third quarter ended 30 September 2020, company secretary, Tichaona Mabeza, said they managed to register growth in spite of the challenges.
“Despite the challenging operating environment, FBC Holdings Limited recorded a 59% growth in total income to ZWL$6.3 billion, compared to the same period last year,” said Mabeza. “The income was mainly driven by a strong growth in net trading income and net interest income. Administrative expenses for the period were up 33% to ZWL$3.2 billion on the back of a devaluation of the local currency. Group profit before tax increased eight fold to ZWL$2.7 billion.”
The group’s statement of financial position as at 30 September 2020, Mabeza said, increased by 19% to ZWL$29.5 billion from the 31 December 2019 position of ZWL$24.8 billion.
“Equity attributable to shareholders of the parent company increased by 52% to ZWL$6.1 billion from ZWL$4 billion as at 31 December 2019, supported by improved retained revenue reserves.
Mabeza said during the period under review, economic activity remained generally constrained due in part to the Covid-19 pandemic while its adverse impact continues to negatively affect business activity.
“Consequently, this has also negatively impacted on the volume of transactions the group has processed during the quarter under review,” he 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.”
