– Wealthtalk News
FBC Holdings posted a healthy revenue increase of 559.71% from ZWL$374.13mn in the 2019 financial year to ZWL$2.47bn in 2020 driven by an uptick in interest income which went up 684.96% from ZWL$224.51mn to ZWL$1.76bn on the back of lending interest rates review. Total income for the Group closed the year at ZWL$4.74bn, up 591.34% from last year’s ZWL$685.70mn.
This was underpinned by the group’s key business of lending as FBC Bank registered a 986.09% growth in profit after tax for the period under review to ZWL$3.21bn from ZWL$295.87mn registered same period prior year.
The group’s financial performance was defensive posting stable earnings and declaring a final dividend of ZWL44.65cents per share. This is in addition to the interim dividend of ZWL29.76cents per share which was paid in September 2020. All this solid performance was regardless of a challenging operating environment characterized by hyperinflation and the unprecedented COVID-19 pandemic. The foreign currency exchange auction system which was introduced by the Reserve Bank of Zimbabwe improved the trading environment as this resulted in price and exchange rate stability as well as reduction in the parallel market rate premium.
Market analysts project that with the inflation rate predicted to close the year at below 30%, and assuming the current disinflation trend is sustained, FBC is expected to register growth in real terms on loans as lending rates currently average 40%.