By Kudzaishe Chimonera
Zimbabwean financial services group FBC Holdings has reported a 23.8% increase in profit before tax to ZWG468.62m for the six months to June, despite a significant fall in profit after tax.
The group’s unaudited condensed consolidated financial results show that total income increased by 17.2% to ZWG2.15bn, up from ZWG1.83bn during the same period last year.
FBC Holdings chairman Herbert Nkala said the group’s performance was supported by growth across its main revenue streams.
“The Group delivered a resilient performance for the six months ended 30 June 2026, underpinned by broad-based growth across our core revenue streams,” Nkala said.
He attributed the performance to the group’s diversified financial services model and increased contributions from customer-focused and transactional activities.
Core revenues, comprising net interest, payments and processing, as well as net fee and commission income, accounted for 73% of total income.
Net interest income rose by 7% to ZWG774.2m, while net fee and commission income increased by 12.4% to ZWG793.3m.
Dealing and investment-related income recorded the strongest growth, rising 75% to ZWG530m, which the group attributed to improved liquidity conditions and higher returns from its investment portfolio.
Nkala said the changing composition of the group’s income was helping to make its earnings more resilient.
“This evolution in our income mix is an important strategic development. It strengthens earnings resilience, enhances the scalability of our business and provides a stronger platform for sustainable growth,” he said.
The stronger operating performance lifted profit before tax from ZWG378.51m in the first half of 2025 to ZWG468.62m.
However, profit after tax fell by 61.3% to ZWG344.22m, compared with ZWG909.69m recorded in the corresponding period last year.
FBC Holdings said the sharp decline was largely due to tax adjustments in the previous reporting period.
The adjustments followed the tax authorities’ position on the deductibility of interest expenses associated with certain borrowings from financial institutions in earlier periods.
The group’s balance sheet also expanded during the period, with total assets increasing by 17.5% to ZWG26.33bn from the December 2025 position.
Customer deposits and lines of credit rose 24.5% to ZWG19.53bn, while loans and advances increased 8.8% to ZWG11.96bn.
“The Group’s balance sheet also strengthened materially during the period,” Nkala said.
He said rising deposits reflected continued customer confidence and improved the group’s ability to provide financing.
Shareholders’ equity increased by 7.2% to ZWG4.50bn.
The board declared an interim dividend of US$0.32 cents and ZWG1.95 cents per share for the six months ended 30 June.
Nkala said the dividend demonstrated the board’s confidence in the group’s financial position while allowing it to retain enough capital to fund future growth.
“The declaration of an interim dividend reaffirms the Board’s continued confidence in the Group’s financial position and its commitment to delivering returns to shareholders while retaining sufficient capital to support future growth,” he said.
Looking ahead, FBC Holdings said it remained confident about its prospects despite continuing global economic and geopolitical uncertainties.
Nkala said improving domestic economic conditions, the group’s diversified business model, established customer base and strong financial position provided a solid foundation for future growth.
The group said it would focus on sustainable income generation, strengthening its balance sheet, improving efficiency, diversifying funding sources and investing in technology and its workforce.
“As we look ahead, we remain focused, confident and committed to delivering sustainable growth and long-term value for all our stakeholders,” Nkala said.
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