Nelson Gahadza
Zimpapers Business Hub
FBC Holdings says liquidity within the banking sector has remained constrained with deposits being largely transitory.
Consequently, the banking group has shifted its focus to funding diversification through lines of credit and new customer segments.
FBC Holdings is a financial services holding company listed on the Zimbabwe Stock Exchange (ZSE), offering a diverse range of services. These include commercial banking, mortgage financing, short-term and reinsurance, securities trading and microfinancing through its various subsidiaries.
In a statement of financials for the half-year ending 30 June 2025, group chairman, Mr Herbert Nkala, said that the company is engaging external financiers for lines of credit.
“Negotiations are at various stages to conclude several credit lines worth more than US$50 million and these are expected to be finalised before the end of the year. This will enhance our ability to support our customers’ funding requirements and grow our revenues,” he said.
Mr Nkala said the group’s banking subsidiaries remain profitable and well-capitalised, with key performance indicators aligning with industry benchmarks.
He added that the business model is, however, undergoing a transformation to remain competitive and the focus has been on increasing investment in technological infrastructure and solutions. The aim is to improve customer experience and convenience and to widen product offerings.
“These interventions are also complementary to the national agenda on financial inclusion through the provision of improved access to financial services at an affordable cost,” he said.
Mr Nkala also said several system enhancements and upgrades are underway, particularly for front-end systems such as mobile banking and internet banking platforms, to improve the customer experience.
“The group has gone further to embrace Artificial Intelligence (AI), focusing on improved processes, product development and enhancements. These initiatives should result in improved efficiency, robust processes, and superior customer service,” he said.
During the period under review, Mr Nkala said the group’s insurance subsidiaries are fully compliant with the new minimum capital requirements and are trading profitably.
He noted that the group’s focus locally is to align with local economic sector growth prospects and enhance its underwriting capacity to offer relevant products that target these economic sectors.
He also highlighted that FBC Re Botswana, on the other hand, continues to register growth in regional markets.
“On the regulatory front, the Government, through the Insurance and Pension Commission (IPEC), issued a new regulatory framework, Statutory Instrument (SI) 67 of 2025, setting the new minimum capital requirements for players in the insurance sector in June 2025. This is meant to promote a stable insurance industry, which, if achieved, will improve confidence and growth,” said Mr Nkala.
In terms of financial performance, group operating income was ZiG1,85 billion, a decline from the ZiG4,06 billion recorded in the corresponding period of 2024. Consequently, profit after tax amounted to ZiG915,7 million, representing a 22 percent decrease from the prior period’s ZiG1,18 billion.
“The outcome underscores a deliberate strategic realignment of the group’s business model in response to the new, stable macroeconomic environment. The composition of the group’s income has shifted markedly towards core business activities, with reduced reliance on gains arising from hedging assets,” said Mr Nkala.
He concluded that the group will continue exploring opportunities to diversify its business portfolio, both locally and regionally.