LEADING financial institution, FBC Bank says inflation decline targeted measures coupled with improved electricity generation will spur economic growth going forward.
Presenting the performance for the Half Year period ended June 30 2023 group chairman Herbert Nkala said domestic economic prospects are projected to remain robust, with economic growth revised to 5, 3% from an initial projection of 3, 8% in 2023.
The perceived growth will be driven by the mining, agriculture, tourism and information and communications technology (ICT) sectors. He commended the government for implementing a raft of monetary and fiscal policy measures aimed at stabilising exchange rates and curbing inflation.
“Improvements in electricity generation will greatly enhance production, manufacturing, mining and other related activities to the benefit of the economy. Relative stability has been witnessed towards the end of the period under review, in response to the implementation of fiscal and monetary measures announced to stabilize the economy.
“The local currency depreciated to USD 1: ZWL6 926.57 at its peak as at 20 June 2023 but has since recovered to USD1: ZWL4 517.14 as at 31 July 2023,” said Nkala.
Meanwhile, during the HY period, the group recorded a total income of ZW$854 billion out of which a Profit after Tax of ZW$366 billion was realised.
The bank advised shareholders that the company has proposed an interim dividend of US0.45 cents per share payable end of September 2023 amid a commitment by the board to ensure a fair dividend return to the owners of the company whilst concomitantly preserving capital for business growth opportunities.
The Group, through its various subsidiaries, has been proactive in managing this risk by investing in various hedged assets and this has sustained the Group’s balance sheet. Focus has also been directed towards increasing US$-based business underwriting to preserve capital and achieve sustained growth.
“The post-reporting exchange rate developments, where the local currency has gained against major trading currencies, is expected to impact the Group’s exchange profit revenue stream outturn and may necessitate a reassessment of the foreign currency hedging positions,” added Nkala.
Source NewZimbabwe
