FBC Holdings targets US$50 million credit lines to bolster lending capacity
HARARE – FBC Holdings Limited is negotiating credit lines worth more than US$50 million to strengthen its funding base and expand lending to customers, as liquidity constraints continue to weigh on the domestic financial sector.
In its unaudited financial results for the six months to 30 June 2025, the diversified financial services group said the negotiations are part of a broader strategy to diversify funding sources away from short-term and transitory deposits.
The group expects the facilities to be concluded before the end of 2025.
Deposits and lines of credit currently account for 62% of total funding, which rose 4% to ZWG13.5 billion in the period under review.
“Liquidity on the other hand has remained constrained with deposits being largely transitory in nature. This has shifted the Group focus to funding diversification through lines of credit and new customer segments.
“Negotiations are at various stages to conclude several credit lines worth more than US$50 million and these are expected to be concluded before the end of the year.
“This will enhance our ability to support our customers funding requirements and grow our revenues,” FBC’s Chairman, Herbert Nkala stated.
The initiative comes at a time when the group is recalibrating its business model to align with a stabilising macroeconomic environment.
Profit after tax declined 22% to ZWG915.7 million from ZWG1.18 billion in the first half of 2024, largely reflecting reduced income from revaluation gains.
Sector-wide, banking profits have dropped sharply from ZWG10.4 billion in 2024 to ZWG4.96 billion in the first half of 2025, according to the Reserve Bank of Zimbabwe.
Despite the lower earnings, FBC reported a stronger balance sheet. Shareholders’ equity rose 17.2% to ZWG6.03 billion, supported by retained earnings, while total assets closed marginally lower at ZWG21.83 billion. Loans and advances accounted for 47% of assets at ZWG10.24 billion.
Core income streams improved, with net interest income edging up to ZWG729.5 million and fees and commissions surging 80.3%, now constituting the bulk of revenues. Operating expenses fell to ZWG1.17 billion from ZWG1.27 billion due to automation and consolidation of operations.
On the market, FBC Holdings’ share price slipped 30% to ZWG7.60 during the period, cutting market capitalisation to ZWG5.10 billion. The board declared an interim dividend of 0.32 US cents per share, up from 0.25 US cents in the prior period.
Looking ahead, the group said it will prioritise digital transformation, funding diversification and expansion into growth sectors such as agriculture, mining, and energy.
Nkala expressed optimism despite subdued market conditions, noting that the new funding lines and operational efficiencies would position the group to capture emerging opportunities and deliver long-term value to shareholders.
“We are focused on enhancing our performance through business model reconfiguration, adaptation and innovation considering increasing complexities in our operating environment.
“The Group will continue exploring opportunities to diversify its business portfolio, locally and regionally, Increased capital allocation towards digital capabilities is further expected to improve efficiency and adapt our product and service offering.
“The Board is confident that, with the strong governance processes in place and timely execution of initiatives, FBC Holdings will successfully navigate evolving market dynamics, mitigate risks, and deliver long-term value to shareholders, customers, and stakeholders,” he stated.
