Notwithstanding a challenging operating environment characterized by exchange rate and inflation headwinds, the Group’s financial performance showed resilience and tenacity. In historical terms, net interest income surged 287.20% from ZWL$1.25bn in 1H21 to ZWL$4.85bn in the period under review, leveraging on the Group’s higher foreign currency lending portfolio proportion. Net fees and commission income registered a growth of 219.37% largely emanating from the Group’s digital thrust which has positively impacted payments and processing systems. The Group’s net earned insurance premium increased by 109.63% to ZWL$1.10bn from ZWL$524.48mn realised same period prior year, which is relatively low compared to other lines of business revenue growth, reflecting subdued consumer capacity in the face of declining disposable incomes. The use of multi-currencies in the economy has however provided an opportunity for the Group’s insurance subsidiaries to increase underwriting in foreign currency. The real estate sector remained suppressed as evidenced by low volumes of transaction, increasing voids in offices occupancy levels in the CBD and limited availability of long-term mortgage finance. Demand however has remained high for residential properties and on this backdrop, FBC continues to actively participate in the residential housing market. There was a significant uptick in net foreign currency trading and dealing income from ZWL$900mn to ZWL$16.36bn owing to depreciation of the local currency which deteriorated 237% in 1H22. Consequently, total income for the Group increased 787.05%, outperforming inflation which stood at 192%, from ZWL$4.82bn in 1H21 to ZWL$42.80bn. Despite FBC’s efforts to contain costs, administrative expenses for the Group increased by 572.66% in 1H22 from ZWL$2.19bn to ZWL$14.73bn mainly due to forward pricing premiums in a hyperinflationary environment. Overall, the bank registered a 1,367.34% growth in PAT for the period under review to ZWL$21.79bn from ZWL$1.48bn registered same period prior year. The Group closed the period with loans and advances worth ZWL$68.81bn an improvement from ZWL$18.06bn registered in 1H21 while deposits surged by 179% from 1H21 value of ZWL$25.92bn to ZWL$72.42bn in the period under review. Consequently, LDR ratio increased from 70% to 95% buttressing the view that banks have increased lending. NAV for the Group closed the period under review at ZWL$39bn from ZWL$6.81bn recorded same comparative period prior year. As at 30 June 2022, all of FBC Holdings Limited subsidiaries were in compliance with their regulated capital thresholds. FBC declared an interim dividend of ZWL148.82cents per share.
