Bombardments unsettle forecast-busting FBC
REVENUE at FBC Holdings Limited, the quoted banking group, rose by 157% during the first quarter as footfall into banking halls improved, responding to government moves to ease pandemic restrictions, according to official filings released on Monday.
Company secretary Tichaona Mabeza said inflation adjusted revenue climbed to $9,29 billion during the review period, as profit after tax improved to $3 billion.
Mabeza did not specifically comment on last week’s hasty policy shifts and changes forcing banks to apply breaks on lending, which have sparked price hikes and basic commodity shortages.
But he said the Zimbabwe Stock Exchange-listed outfit was worried that pockets of instability were mounting on the domestic market partly imported from developments on the international markets where a bloody conflict in Eastern Europe has frustrated international trade and pushed critical commodity prices up.
“The group surpassed performance expectations, largely benefiting from the relaxation of COVID-19 restrictions, which restored business-operating hours,” Mabeza said.
“The group recorded a total income growth of 157% on the prior year comparative period to $9,29 billion in inflation adjusted terms. Net interest and related income was 110% higher than prior year while net fee and commission income improved by 64%. Other income comprising mainly trading profit on exchange and fair value gains was recorded at 274% above prior year, reflecting the local currency depreciation. The group achieved a commendable profit before tax position of $3,84 billion and an after tax position of $3,09 billion, being an improvement of 160% and 165% respectively,” Mabeza added.
He said Zimbabwean households’ efforts to tackle the domestic crisis had been jeopardised by blowbacks from the Russian bombardments in Ukraine, which have escalated an erosion of incomes and shifted spending patterns.
Zimbabwe, along with the rest of the global economy, have been caught up in a conflict that millions least expected to have far-reaching implications on a wide scale.
Pass through inflationary pressures and rioting prices have hit domestic consumers’ pockets, FBC said in its analysis of why domestic markets are in a tailspin.
“In the global context, the conflict touches on the economic, ideological, military and strategic interests of most superpowers,” he explained.
“There have been punitive disruptions to the availability and pricing stability of various global supply chains spanning from energy, agriculture, mining, banking systems and cybersecurity sectors of the global economy.
Locally, the ripple effects of the afore-mentioned conflict continue to be felt in the economy, particularly in the form of pass-on increases in basic commodity prices, such as fuel, cooking oil and wheat, which has negatively affected consumption at household level at a time our own country is dealing with addressing the structural weaknesses in the economy and the vagaries of climate change. Aside from the afore-mentioned global disruptions, the group is conscious of the persistent local macro-economic vulnerabilities, including but not limited to run-away inflation, unstable foreign exchange markets and speculative arbitrage activities as well as increased climate change vulnerabilities affecting both access to energy and nutrition in our communities,” he said.
Last month FBC chairperson Herbert Nkala urged authorities to address economic problems.