Business - Companies & Markets - Featured - Finance - Local - November 24, 2020

FBC Holdings records a ZWL6.3 billion revenue surge despite economic constraints

By Staff Writer

FBC Holdings Limited recorded a 59% growth in total income to ZWL6.3 billion compared to the same period last year and this was mainly driven by strong growth in net trading income and net interest income.

In a financial statement ending 30 September 2020, the company Secretary Mr. Tichaona Mabeza explained the positive financial strides made during the third quarter.

“Despite the challenging operating environment, FBC Holdings Limited recorded a 59% growth in total income to ZWL6.3 billion, compared to the same period last year.

“The income was mainly driven by strong growth in net trading income and net interest income. Administrative expenses for the period were up 33% to ZWL3.2 billion on the back of a devaluation of the local currency. Group profit before tax increased eightfold to ZWL2.7 billion.

“The Group’s statement of financial position as at 30 September 2020 increased by 19% to ZWL29.5 billion from the 31 December 2019 position of ZWL24.8 billion.

“Equity attributable to shareholders of the parent company increased by 52% to ZWL6.1 billion from ZWL4 billion as at 31 December 2019, supported by improved retained revenue reserves”, explained Mabeza.

Mabeza further added that “On a year-on-year basis, average consumer prices increased by 659.40% in September 2020, coming down from 761.02% in August 2020, and 838% recorded in July 2020.

‘” On a month-on-month basis, average consumer prices increased by 3.83% in September 2020, down from 8.44% and 35.53% in August 2020 and July 2020 respectively”.

“From 01 July 2020 to 30 September 2020, the local currency (ZWL) depreciated by approximately 28% against the United States Dollar (US$). However, in the last two months of the third quarter of 2020, the ZWL started appreciating, gaining 9% in August and a further 2% in September, closing the month of September at ZWL81.43 to the US$”.

 

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