FBC Holdings Q3 income up 59 percent

Business Reporter
FINANCIAL services group, FBC Holdings Limited, says its total income rose by 59 percent to ZWL$6,3 billion in the third quarter ended 30 September 2020 compared to the same period last year.

This was despite a challenging operating environment, which has been constrained by the spread of the deadly Covid-19 pandemic into the country early this year. The adverse impact of the disease continues to affect business activity with the general volume of banking transactions also being hampered.

Although the bank incurred administrative expenses of up to ZWL$3,2 billion on the back of a devaluation of the local currency, which was a 33 percent increase compared to prior period, FBC attributed the solid increase in its income to “strong growth” in net trading income and net interest income.

“Group profit before tax increased eight-fold to ZWL$2,7bn. The group’s statement of financial position as at 30 September 2020 increased by 19 percent to ZWL$29,5bn from 31 December 2019 position of ZWL$24,8bn,” said company secretary, Mr Tichaona Mabeza, in a trading update for the period.

“Equity attributable to shareholders of the parent company increased by 52 percent to ZWL$6,1bn from ZWL$4bn as at 31 December 2019, supported by improved retained revenue reserves.”

In a drive to enhance improved product service and client satisfaction, the banking group has introduced a number of digital products targeting niche markets.

For instance, FBC has launched the “Noku”, a smart digital assistant equipped with the capabilities to assist clients in accessing banking and insurance services via WhatsApp platforms at any time of the day. The group has also introduced a WhatsApp capability of “YAKO”, which is a digital insurance onboarding product that allows vehicle owners to purchase third party insurance instantly using their mobile devices.

“Over the three-month period, the above innovations resulted in our banking and insurance subsidiaries improving the pace of customer acquisition,” said Mr Mabeza.

On the outlook, FBC has projected that the emergence of the second wave of Covid-19 pandemic in countries that are major trading partners and source markets for tourists, could further impact negatively on the country’s economic recovery prospects.

“We nevertheless remain cautiously optimistic that normalcy will return, as we continue to activate, review and strengthen our business continuity and disaster recovery plans,” said Mr Mabeza.