FBC embarks on housing schemes
FBC HOLDINGS says it is actively participating in the residential housing market as the demand for housing soars.
The real estate sector has remained suppressed as evidenced by low volume of transactions, increasing voids in offices occupancy levels in the central business district and limited availability of long-term mortgage finance.
But FBC Holdings last week said demand, however, remains high for residential properties, which are also viewed as value-preserving assets in the face of hyperinflation.
“To this end, the group continues to actively participate in the residential housing market through construction of new housing stock, thereby contributing to the National Development Strategy (NDS) 1 goals. FBC Building Society has completed construction of 257 residential housing units at Kuwadzana Fontaine Ridge with a further 600 housing units targeted on a phased approach,” the group said in a statement accompanying the groups’ financial results for the half year ended June 30 2022.
It said the FBC Building Society was also progressing well with a housing development at Zvishavane Eastlea Project where construction of 98 cluster housing units is underway with the project scheduled for completion by December 31 2022.
Meanwhile, the group is also continually seeking opportunities to preserve and grow shareholder value as well as enhance customer experience.
During the period, the negative real returns characterised the stock market due to contractionary policy interventions that dampened market momentum resulting in the all-share index gaining 83% for the six months compared with cumulative monthon-month inflation of 111% from January to June 2022.
FBC Holdings achieved a profit before tax of ZW$12,2 billion (US$35,1 million) and an after tax profit of ZW$8,1 billion (US$ 23,3 million).
FBC Holdings profitability was achieved on the back of a 212% improvement in total income to ZW$43,2 billion ( US$124,3 million), 68% of this amount was in favour of the group’s hedging and investment strategies and 32% was derived from core business revenue lines.
“Net interest and related income improved by 89% to ZW$7,3 billion (US$ 21 million), leveraging on the group’s higher foreign currency lending portfolio proportion. Loans and advances totalling ZW$68,8 billion (US$ 198 million) improved by 34%, co
mpared to the audited position as at 31 December 2021,” FBC Holdings said.
“Net fee and commission income registered a growth of 44% to ZW$4,7 billion(US$13,5 million) largely emanating from the group’s digital thrust which has positively impacted our payments and processing systems.
“Plans are underway to deploy a sizeable number of Point of Sale (POS) machines in the market, to increase customer acquisition,
Convenience and transaction volumes,” the group added.