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FINANCIAL services group, FBC Holdings Limited posted an after-tax profit of $25,4 billion in the first quarter ended 31 March 2023 and anticipates that the reduction of interest rates by the Reserve Bank of Zimbabwe will stimulate demand for credit and promote production.
In a trading update, group secretary, Mr Tichaona Mabeza said the financial institution expects the monetary authorities to continue reviewing measures to mitigate and stimulate economic activities.
During the period under review, the Central Bank reduced the bank policy rate from 150 percent to 140 percent per annum and reviewed the Medium-term Bank Accommodation (MBA) facility for productive sectors from 75 percent to 70 percent per annum.
“It is anticipated that the reduction of interest rates will stimulate demand for credit and promote production. In addition, the central bank also recently introduced the gold-backed digital currency that will be used as legal tender and a store of value, alongside the Zimbabwean dollar and bond notes, as part of the measures introduced to promote currency stability,” said Mr Mabeza.
He said FBC Holdings Limited’s total income was $49 billion as the group maintained a prudent approach to expense management, achieving a cost-to-income ratio of 41 percent for the period under review.
“Subsequently, the group recorded a profit before tax of $28,79 billion and an after-tax profit of $25,4 billion.
“The group’s total assets were recorded at $495,4 billion with underlying shareholder funds of $90,5 billion and a return on equity of 28 percent,” he said.
The gold-backed digital tokens have already mopped out $14 billion from 135 bids received on first issue, the Reserve Bank of Zimbabwe said on Friday.
A total of 132 bids in local currency were received with three in United States dollars.
Mr Mabeza said that overall, the bank expects the monetary and fiscal authorities to continue putting in place measures to promote economic growth, currency stability and to boost market confidence for the well-being of the economy.
Last week, the Finance and Economic Development minister, Professor Mthuli Ncube announced a raft of measures geared at stabilising the exchange rate and the economy.
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