FBC upbeat despite severe headwinds
CLOUDINE MATOLA
FBC Holdings, a publicly traded financial services group, is upbeat about the future despite the severe headwinds plaguing the economy, Business Times.
It comes at a time when Zimbabwe’s fragile economy is battling a chronic liquidity crunch and currency volatility, among many other problems.
Hebert Nkala, the board chairman of FBC Holdings, said the group’s top priorities would include resource mobilisation and expanding market share, among many other issues.
“Notwithstanding the projected slowdown in economic growth for the year 2024 on account of the drought and tight liquidity conditions, the group expects to continue trading profitably across its business segments.
The group is focusing on resource mobilization, market share growth, hedging and capital rationalization among other key strategic issues,” Nkala said.
Moreover, Nkala stated that FBC Holdings would also focus on leveraging on small and medium-sized enterprises (SMEs) growing demand for central business district (CBD) office space.
“SMEs have become the main drivers of demand for CBD office space. Through our building society, we are focusing on this segment given the strong demand. The commercial office market is however, experiencing subdued activity in the CBD, as businesses increasingly favour of office locations outside the CBD to minimize operational costs,” Nkala said.
He added that, the group’s project pipeline is across several cities and towns, which include Zvishavane, Marondera, Hwange, Masvingo and Harare.
In its financial results for the six months to June 30, 2024, total income dipped to ZWG$2.1bn from ZWG$3.4bn reported in the prior comparative period.
Consequently, profit for FBC Holdings slumped to ZWG$613.2m from ZWG$1,4bn reported in the same period last year.
Operating costs in the period under review were ZWG$659m from ZWG$1.4bn reported in the prior comparative period.
Total assets for the group stood at ZWG$9.99bn in the period under review from ZWG$8.87bn reported in the prior comparative period.
Nkala also said: “The group’s strategic thrust is liquidity mobilization to support balance sheet growth and to meet customers’ funding requirements. We, however, remain cautious in our lending practices due to the high inherent credit risk. Our loan portfolios are performing well and are in line with our expectations and regulatory thresholds.”
FBC Holdings, Nkala said targets to maintain a solid financial position and ensure business units are adequately capitalized to underwrite business in line with our growth targets.
“The group is currently undertaking a capital rationalization exercise in line with the group’s Capital Allocation Framework, following the acquisition of Standard Chartered Bank Zimbabwe. Our strategy focuses on efficient capital allocation, in line with the risk-return profile of each business and ensuring compliance with minimum regulatory capital requirements,” Nkala said.
He said FBC Holdings is also focusing on information technology investments, in line with the group’s digitalization thrust and the need to provide seamless customer experience.
