marble nkomo
Tapiwanashe Mangwiro
FBC Holdings Limited has embarked on a major restructuring of its operations, as the diversified financial services group positions itself for long-term growth in an evolving economic landscape.
Group chief executive Mr Trynos Kufazvinei said the organisation consolidated its retail banking businesses during the year, merging FBC Bank Limited and FBC Building Society into a single banking entity.
At the same time, the group transferred property development operations into a new specialist unit, FBC Properties, which will focus exclusively on property development and management.
Mr Kufazvinei said the restructuring was designed to sharpen operational efficiency and unlock value within the group’s core businesses.
“The restructuring is expected to enhance operational efficiency and unlock value across both banking and property businesses,” he said.
The changes form part of a broader strategic repositioning aimed at streamlining operations while strengthening the group’s capacity to support economic activity.
FBC Holdings reported a strong financial performance for the year, buoyed by higher transactional activity, diversified revenue streams and tight cost control.
The group recorded an 84 percent increase in profit before tax to ZiG815,2 million, reflecting improved earnings from its core banking operations.
According to Mr Kufazvinei, income from trading activities remains the main driver of the group’s earnings.
“Income from core trading activities, which accounted for 80 percent of total income, is trending positively, driven by net interest income and transaction and payment processing fees,” he said.
Banking operations accounted for roughly four-fifths of the group’s income, while insurance and investment operations contributed the remaining 20 percent.
Cost management also positively impacted the performance results. Operating expenses declined significantly to ZiG2,64 billion from ZiG4,58 billion in the previous year, largely due to the ongoing digital transformation programme.
Automation initiatives and process consolidation have helped streamline operations and reduce overhead costs.
The group’s financial position also improved significantly during the period, supported by strong deposit mobilisation and balance sheet expansion.
Total assets grew by 20 percent to ZiG21,8 billion, driven primarily by a 65 percent surge in customer deposits to ZiG12,5 billion.
Loans and advances increased by 21 percent, reflecting targeted lending growth in sectors viewed as key to economic expansion.
Cash and bank balances rose by 20 percent to ZiG5,4 billion, reinforcing the group’s liquidity position and enabling it to meet growing client funding requirements.
Equity also strengthened, rising 19 percent to ZiG4,1 billion on the back of a 31 percent increase in retained earnings.
However, the growth in equity was partially tempered by prior period adjustments linked to currency changes in Zimbabwe’s financial system.
Across the group’s subsidiaries, banking operations remained the largest contributor to earnings.
FBC Bank generated a profit before tax of ZiG302,2 million for the year, supported by strong growth in funded income and transaction fees.
Net interest income reached ZiG864,4 million, while fees and commission income climbed to ZiG1,1 billion, reflecting increased use of digital banking platforms and multiple service delivery channels.
The bank’s loan book stood at ZiG8,6 billion, underscoring its role in financing productive sectors of the economy.
Meanwhile, wholesale banking subsidiary FBC Crown Bank Limited reported profit before tax of ZiG132 million, representing a 22 percent increase on the previous year.
Growth was driven by expanded lending activity and a broader customer base among corporate and institutional clients.
Microfinance arm Microplan Financial Services posted profit before tax of ZiG112,4 million, up 8 percent from the prior year as lending activity expanded.
The company continues to serve salaried workers, farmers and small businesses, with loan products supporting initiatives such as solar energy installations, borehole drilling and agricultural inputs.
Within the group’s insurance division, FBC Insurance Company recorded premium growth during the year but saw profitability decline due to a higher claims ratio, particularly within the motor vehicle segment.
Profit before tax fell to ZiG16,9 million from ZiG28,2 million in the previous year.
Reinsurance arm FBC Reinsurance Limited generated profit before tax of ZiG31,2 million, supported by premium growth and investment income.
However, elevated claims also weighed on earnings, prompting the company to introduce price adjustments and tighter risk selection.
On the capital markets front, brokerage subsidiary FBC Securities benefited from strong performance on the Zimbabwe Stock Exchange and Victoria Falls Stock Exchange, where returns compared favourably against inflation and other asset classes.
Looking ahead, Mr Kufazvinei said the group would continue focusing on strengthening resource mobilisation while directing lending toward high-impact sectors such as agriculture, mining and small to medium enterprises.
Digital transformation will remain central to the group’s strategy, with investments planned in system upgrades, innovation and automation to deepen transactional activity and widen product offerings.
The newly established FBC Properties unit is also expected to play a growing role in the group’s long-term growth plans by driving property development projects both within the organisation and for external clients.
With operations spanning banking, insurance, reinsurance, securities and microfinance, the group believes its diversified structure positions it well to navigate Zimbabwe’s changing financial landscape.
“Our focus will continue to be on robust risk management, asset quality and ESG integration to ensure sustainable performance,” Mr Kufazvinei said.
“We remain committed to delivering long-term value for shareholders while supporting community development and building a resilient, future-ready organisation.”
Online Reporter