FBC Holdings Limited has announced a profitable first half for 2024, driven by the successful integration of its newly acquired Crown Bank, formerly Standard Chartered Bank Zimbabwe.
In its trading update for the six months ended June 30, 2024, financial services group recorded a profit before tax of ZWG669.7 million for the six months ended June 30, 2024, despite operating in a challenging macroeconomic environment.
The acquisition of Crown Bank has significantly expanded FBC Holdings’ market share in the banking sector. The bank was bought for the total price of US$26.7 million in May this year.
The bank, rebranded as FBC Crown Bank Limited, is expected to generate substantial value for shareholders in the coming years.
“The Group’s balance sheet strengthened, with total assets reaching ZWG9.99 billion, buoyed by the acquisition of FBC Crown Bank Limited, formerly Standard Chartered Bank Zimbabwe,” said Herbert Nkala, Group Chairman.
The chairman further stated that FBC Holdings was targeting to maintain a solid financial position and ensure business units are adequately capitalized to underwrite business in line with their growth targets.
He added that the Group was currently undertaking a capital rationalization exercise in line with the Group’s Capital Allocation Framework, following the acquisition of Standard Chartered Bank Zimbabwe.
“Our strategy focuses on efficient capital allocation, in line with the risk-return profile of each business and ensuring compliance with minimum regulatory capital requirements,” Nkala stated.
“FBC Holdings completed the acquisition of Standard Chartered Zimbabwe on May 18, 2024, further consolidating our market share in the banking sector and the business has since been integrated into FBC Holdings.
“Standard Chartered Bank Zimbabwe Limited was successfully renamed to FBC Crown Bank Limited trading as Crown Bank on the 17th of August 2024 after obtaining regulatory approvals.
“The focus is now on driving business growth, in line with the Group’s market segmentation. We are confident that this acquisition will generate substantial value for our shareholders in the years to come.”
The Group’s total assets reached ZWG9.99 billion, with shareholder funds increasing by 31% to ZWG2.4 billion.
However, the Group’s monetary loss of ZWG774 million due to hyperinflationary conditions and foreign currency fluctuations weighed down its operational profit.
“The monetary loss reflects the impact of the hyperinflationary environment on the Group’s net financial assets, which subsisted during the year’s first quarter,” Nkala stated.
Looking ahead, FBC Holdings remains cautious due to Zimbabwe’s projected economic slowdown, but expects to continue trading profitably across its business segments.
The company has proposed an interim dividend of 0.25 US cents per share, payable on October 7, 2024.
