FINANCIAL services behemoth FBC Holdings Limited achieved an inflation-adjusted profit after tax of ZWL$1,1 trillion for the quarter ending March 31, 2024, driven mainly by exchange profit.
Total income stood at ZWL$2,7 trillion, while inflation-adjusted total assets were ZWL$14,6 trillion.
“The operating environment in the first quarter of 2024 was characterised by local currency volatility, inflationary pressures and economic uncertainty ahead of the 2024 Monetary Policy Statement pronouncement,” the bank said in a first quarter update.
“Despite the recent volatility in the exchange rate, domestic economic prospects remain favourable, albeit at a slower pace, with economic growth projected at 3,5% in 2024 from 5,3% in 2023.”
The lower estimate is due to the El Niño-induced drought threat and adverse spill-over effects of risks and vulnerabilities on the global economy.
In addition, the International Monetary Fund revised the country’s 2024 real gross domestic product growth projections downwards from 3,5% to 3,25%, reflecting the combined effects of drought and lower commodity prices.
FBC said Zimbabwe presents a compelling case for robust economic expansion and improved living standards, driven by a dynamic private sector.
“The nation’s competitiveness in agricultural value chains remains strong, despite the El Niño-induced drought,” it noted.
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“Furthermore, the potential for tourism and the significant reserves of energy transition minerals, particularly lithium, are poised to impact economic activity positively.
“Recognising this potential, FBC Holdings is strategically positioned to identify and capitalise on opportunities that promote sustainable growth.”
The bank said the strategic acquisition of Standard Chartered Bank Zimbabwe was expected to enhance group earnings and deliver sustainable shareholder value.
It said the Zimbabwe Gold (ZiG) currency, backed by a basket of foreign currencies and precious metals, is expected to restore confidence in the local currency and safeguard the multi-currency system.
“We commend the central bank’s continued efforts to contain inflationary pressures and exchange rate volatility, to foster confidence in the local currency,” FBC further indicated.
