FBC : FY23 Results & Audit Opinion

52% (2023)

53% (2022)

Interim 0.45

Financial Performance Review - Inflation Adjusted

Notwithstanding the challenges faced in 2023, FBC Holdings achieved a commendable set of financial results. The Group's profit before tax, adjusted for inflation, was ZWL403.5 billion, which represents a 255% increase from ZWL113.7 billion recorded in the previous year. This notable performance was mainly driven by the growth in total income and in part, by cost containment. The Group's profit after tax increased by 443% to ZWL327.4 billion.

Total income for the Group increased by 138% to ZWL1.3 trillion, up from ZWL533.0 billion, driven by the growth in all revenue streams, save for insurance and property sales. The Group's net interest income increased by 69% to ZWL239.8 billion, compared to ZWL142.2 billion in 2022, supported by a 121% growth in loans and advances, which closed the year at ZWL1.6 trillion. The Group's banking subsidiaries experienced a higher demand for foreign-currency-denominated loans in response to increased usage of multiple currencies for local transactions. The loan book is now predominantly USD-denominated.

The Group's net fee and commission income registered a 179% growth to ZWL231.5 billion, mainly due to increased transactional volumes across the various digital delivery channels. The Group's insurance subsidiaries reported an insurance service loss of ZWL12.4 billion due to a persistent mismatch between premium recording, collections and foreign currency-indexed claims.

Total other income, which includes foreign exchange and investment income, grew by 163%, significantly contributing to the Group's total revenue. This income was mainly derived from the Group's hedged positions.

Administration expenses increased by 169% to ZWL955.5 billion from ZWL354.8 billion reported in the previous year as a result of the re-pricing of overheads in line with exchange rate movements and inflation trends. Consequently, the Group's cost-to-income ratio was 75%, compared to 67% in 2022.

The Group's statement of financial position strengthened to ZWL3.4 trillion, anchored by a growth in loans and advances. Shareholders' funds grew by 141% to ZWL706 billion, mainly due to increased profitability for the year. The Group remains committed to preserving shareholder value and growth.

Operating Environment

The Zimbabwean economy experienced growth despite the currency instability and high levels of inflation. According to the International Monetary Fund (IMF), the country achieved a GDP growth of 5.3% in 2023, driven by the remarkable expansion of the agricultural and mining sectors. Foreign currency inflows and remittances continue to support the growth of domestic trade and services, which are heavily dollarized. Remittances are expected to remain strong and the current account is projected to be in a small surplus.

Despite the growing disparity between the Zimbabwean Dollar (ZWL) and the United States Dollar (USD) in both the official and alternative markets, we believe that increased dollarization will continue to stabilize the economy. While power outages have continued to have a significant impact on business productivity across all sectors, there was an improvement in power generation capacity in the second half of the year.

The government is making concerted efforts to re-engage with the international community, restore macroeconomic stability, and establish a track record of sound economic policies. We have faith in the structural reforms being implemented by the government to improve the business climate, strengthen economic governance, and reduce vulnerabilities. FBC Holdings will continually seek opportunities to promote sustained and inclusive growth that complements Zimbabwe's development objectives embodied in the country's National Development Strategy 1 (2021-2025).

Financial Services

The financial services industry remained stable and profitable in 2023. Market liquidity tightened as the election period approached but gradually eased towards the end of the year. As a result, the financial services sector invested in various hedging strategies to preserve shareholder capital and profitability, resulting in increased revaluation and foreign exchange gains.

The banking sector experienced significant growth in aggregate loans in real terms. Asset quality remained favourable at 3.5%, well below the regulatory threshold of 5%.

The Reserve Bank of Zimbabwe launched the National Financial Inclusion Strategy (NFIS) II (2022-2026) to promote sustainable livelihoods; create wealth and employment; and support gender equality. The strategy provides clear guidelines for the financial services sector to follow. In this regard, our microfinance subsidiary and fintech unit are developing products and services that promote inclusivity.

Foreign Exchange

During the reviewed period, the country experienced significant changes in foreign exchange rates. The official exchange rate, which was pegged at ZWL930.00:US$1.00 at the beginning of the year, reached a rate of ZWL6 105.00:US$1.00 by the end of the year. The Reserve Bank of Zimbabwe implemented various measures aimed at enhancing transparency, promoting fair pricing, and stabilizing the foreign exchange market. Some of these measures include increasing the frequency of auctions and introducing a willing-buyer, willing-seller interbank foreign exchange market. Despite these efforts, the foreign exchange market remained volatile throughout the year, negatively impacting economic activity.

Inflation

The government was able to control high annual headline inflation by implementing strict monetary and fiscal policies despite a difficult start to the year. The inflation rate, which began at 34.8%, peaked at 44.1% in February but ultimately decreased to 26.5% by the end of the year. Additionally, the month-on-month inflation rate peaked at 12.1% in June, before dropping to 4.7% in December.

Despite these fluctuations, the Group managed to hedge part of its balance sheet to preserve shareholder value. We commend the government for its continuous efforts to address structural challenges and guide the country towards sustained economic growth and low inflation.

Insurance Sector

The government introduced the Insurance (Amendment) Regulations, 2023 (No. 26), through Statutory Instrument 81 of 2023. This regulation discourages credit insurance and aims to manage high-premium debtors as well as improve the quality of insurance collections. Our insurance subsidiaries are expected to benefit through increased cash inflows and increased investments, subsequently improving the capacity to settle claims. On 28 November 2023, the government launched the third Money Laundering National Risk Assessment (ML-NRA). This initiative encourages all insurance companies to perform sectoral and institutional risk assessments to heighten awareness of money laundering risks on a national scale. I am pleased to report that our Group's insurance subsidiaries remained compliant with all regulatory requirements throughout the year.

Property Market

Although some sectors of the real estate market demonstrated resilience during the period under review, the overall market faced challenges due to the economic environment. Towards the end of the year, the multi-currency regime stabilized and there was increased circulation of the United States Dollar (USD), resulting in a slight growth in the construction of residential properties. Sales of residential properties, however, remained low due to the market's insistence on foreign currency payments. Demand for Central Business District (CBD) office space continued to decline as most occupants shifted their preference to the suburban market. This shift was primarily due to high rentals, increased parking fees, and traffic congestion in the CBD. Resultantly, many corporate entities are migrating to the suburban market. Nonetheless, the rental market remained highly active in 2023, with most rentals denominated in USD.

The Group firmly believes that the development of strong communities is dependent on the country's ability to meet the basic needs of its people. In the review period, we supported national housing initiatives by providing over 300 rental units at Fontaine Ridge (Harare) and at Eastlea (Zvishavane). Additionally, we constructed thirteen townhouses in Glen Lorne, further contributing to the development of the area.

Stock Market Performance

FBCH Share Price Performance

The FBCH share price closed the year at ZWL906.05 after gaining 1,361.37%. Subsequently, the Group's market capitalization improved from ZWL41.7 billion to ZWL608.8 billion. During the year, a total of 9.52 million shares were traded at a weighted average price of ZWL656.18. The Group remains committed to the preservation and growth of shareholder value.

Sustainability

FBC Holdings believes that the organization's long-term success hinges on its connectedness to and alignment of its operations with the environmental and social priorities of the communities it serves. The company has integrated sustainability best practices into its core strategy and is collaborating with partners and stakeholders to create more sustainable and inclusive communities. The primary goal is to redefine finance by making it affordable, accessible, and inclusive, while nurturing sustainable solutions in response to evolving stakeholder needs and the changing global economic and regulatory landscape.

The Group appreciates the regulatory authorities' commitment to facilitating sustainable growth and returns, by prioritizing sustainability and climate-related risks and opportunities. In 2023, the Reserve Bank of Zimbabwe Climate Risk Management Guideline and the International Financial Reporting Standards (IFRS) sustainability disclosures were introduced, capital allocation and compelling all players to consider environmental impact, as they pursue profitability. The Group has significantly progressed in adopting these sustainability best practices.

Our Community Impact

The Group has continued with its community-driven initiatives which are designed to create long-term benefits for vulnerable communities. The Group invested over USD580,000.00 in community-driven initiatives during the review period. Entembeni Old People's Home in Bulawayo, Shungu Dzevana Children's Home farm in Mhondoro and Gurungweni Secondary School in Chikombedzi received assistance in the form of groceries, farming implements, and building materials. The Group also sponsored the 2023 Zimbabwe Open Golf Championship as the title sponsor in association with the Zimbabwe Golf Association (ZGA), which has a vibrant grassroots training program, aimed at exposing disadvantaged youth to the world of golf.

Digital Transformation and Innovation

In today's fast-changing financial landscape, digital transformation and innovation are no longer optional but necessary. FBC Holdings understands this and is committed to the journey of digital transformation. Through our dedicated fintech unit, we continuously review the Group's technology architecture and develop comprehensive strategies that align with the customers' ever-changing needs. Our main goal is to provide a secure, user-friendly, and seamless digital experience, increase resource efficiency and foster a culture of innovation across FBC Holdings.

Our major milestones for the year ending 31 December 2023 include seamless customer onboarding, lending platforms and payment solutions. These digital advancements have enabled FBCH to improve service, operational efficiency and ensure regulatory compliance. We aim to be a leading force in the market, building a future-proof organization centred on customer needs and continuous stakeholder engagement. While we celebrate our achievements in 2023, we understand the importance of exploring and integrating emerging technologies into our business to respond to the evolving needs of our diverse customer base.

Compliance

The Group understands the importance of maintaining stakeholder trust and confidence in its pursuit of providing excellent service. Throughout the reporting period, we have continued to prioritize compliance and governance as fundamental pillars of our business strategy. Our Board of Directors provides robust oversight of our compliance efforts, ensuring that we adhere to the highest standards of corporate governance and ethical conduct. We have established clear lines of accountability and a robust framework for monitoring and evaluating compliance risks, which enable us to identify and mitigate potential issues in a timely and effective manner.

Standard Chartered Bank Zimbabwe (SCBZ) Acquisition Update

During the period under review, the shareholders of FBC Holdings Limited approved the acquisition of Standard Chartered Bank's operations in Zimbabwe. The Group has subsequently received most of the necessary regulatory approvals and is working towards fulfilling conditions precedent to the acquisition. The complete takeover of the business is expected in the second half of the year.

Directorate

The Board of Directors of FBC Holdings wishes to advise that Dr John Mushayavanhu stepped down as Group Chief Executive of FBC Holdings with effect from 31 December 2023, following his appointment as Governor of the Reserve Bank of Zimbabwe. The Group is grateful for his exceptional leadership over the years and wishes him success in his new role.

Subsequently, the Board of Directors of FBC Holdings Limited appointed Mr Trynos Kufazvinei as the Group Chief Executive of FBC Holdings Limited, effective 1 January 2024. Prior to his new role, he was the Deputy Chief Executive of FBC Holdings and has a proven track record of success as part of the core team that has been instrumental in the development and execution of corporate strategy over the years. He is well-positioned to lead the FBCH team and advance the growth of the FBC brand.

Furthermore, the Board wishes to advise that Mr Webster Rusere, the Managing Director of FBC Bank Limited, was appointed Deputy Group Chief Executive of FBC Holdings Limited, effective 1 January 2024. Mr Abel Magwaza was appointed Group Finance Director with effect from 1 January 2024, he was previously an executive director with FBC Bank.

The Board looks forward to a productive stewardship of the new appointees.

Dividend

I am pleased to advise that the Company has declared a final dividend of US 0.45 cents per share. This is in addition to an interim dividend of US 0.45 cents, which was paid in September 2023. The dividend is payable to Shareholders registered in the books of the Company at the close of business on Friday 19 April 2024. The shares of the Company will be traded cum-dividend on the Zimbabwe Stock Exchange up to the market day of 15 April 2024 and ex-dividend as from 16 April 2024. The dividend payment will be made to Shareholders on or about 29 April 2024.

Outlook

GDP is projected to be around 3.5% in 2024, which is a decrease from 5.3% in 2023. This partly reflects the impact of the El Nino drought on agricultural production and lower commodity prices. The Group will continue to scout for opportunities to create value for all key stakeholders, while emphasizing the preservation of capital.

Appreciation

Despite operating in a challenging environment, our Group has managed to not only survive but thrive, thanks to the unwavering support of our esteemed customers. Their loyalty has been a beacon of hope and motivation, enabling us to overcome obstacles and emerge stronger than ever before. We are deeply grateful to all stakeholders for their trust and confidence in us and we remain committed to providing them with the highest standards of service and quality that they have come to expect from us. To the FBC Holdings Board, management, and staff, we extend our heartfelt appreciation for your unparalleled guidance, commitment, and exceptional performance.

FBC Holdings Chairman

Operating Environment

The country has witnessed a strong economic rebound since the COVID-19 pandemic, making it one of the fastest-growing economies in the Southern African Development Community. Growth is, however, expected to slow down to 3.5% in 2024, which is a decrease from 5.3% in 2023, due to depressed global growth and erratic below-average rainfall, caused by the El Niño weather pattern, affecting agricultural output. The mining sector is expected to grow by 7.6% and accommodation and food services by 6.9%, while the agriculture sector is projected to contract by 4.9%. Despite the challenging operating environment, FBC Holdings Limited will strive to facilitate economic growth, manage risk, and promote financial inclusion through various value chain financing initiatives.

Zimbabwe has faced increased global turmoil over the years, notwithstanding an expansionary monetary policy that has added initial pressure on inflation and the exchange rate. The Reserve Bank of Zimbabwe has, however, taken proactive measures to bring down inflation and quell informal market premiums by tightening the monetary policy. The government has also extended the use of the US dollar as legal tender until 2030, inspiring confidence in the local operating environment. It is noted that the attainment of foreign exchange and inflation rate stability is progressive and requires consistent implementation of monetary policy and budget discipline. The extension of the multi-currency environment will allow the Group to mobilize resources and realign investment tenors to achieve business growth.

The first half of 2024 could be challenging, due to local food insecurity, a slowdown in global output, reduced trade and investment and increased volatility in commodity prices. The Group will strive to preserve shareholder value and seek out opportunities for sustained growth and profitability.

Our Consolidated Group Performance

FBC Holdings had a strong financial performance for the period ending 31 December 2023, with solid balance sheet growth and sustained earnings across its various subsidiaries. The Group achieved a commendable profit before tax of ZWL403.5 billion, which is an improvement of 255% compared to the prior year's ZWL113.7 billion. Total net income improved by 138% to ZWL1.3 trillion, largely comprising net interest income and exchange gains emanating from the group's foreign currency net asset position. The composition of the Group's earnings profile demonstrates growth and agility in a challenging operating environment, where capital preservation is critical.

Total operating expenses were recorded at ZWL955.5 billion, which is 169% higher than the previous year. Consequently, the cost-to-income ratio for the review period was recorded at 75%, against a figure of 67% recorded in the previous year. The increase in group expenses was primarily a reflection of the movement in prices of goods and services in the local currency, which responded rapidly to the depreciation in the exchange rate. The government has however, instituted fiscal and monetary measures to re-establish stability in the foreign exchange market. The Group is confident that these measures will relatively stabilize the prices of goods and services.

An increase in lending portfolios, especially in foreign currency by the banking subsidiaries, supported the balance sheet to ZWL3.4 trillion, representing a growth of 113% compared to the ZWL1.6 trillion achieved in the previous year. Total equity increased by 141% to ZWL705.9 billion from ZWL293.1 billion, reflecting the Group's sustained business underwriting capacity. The Group's total equity is hedged through hard currency-denominated assets and investment properties. As of December 31, 2023, all Group subsidiaries complied with their applicable regulatory minimum capital requirements.

Group Segment Reviews

FBC Holdings' performance in 2023 reflects the Group's strength to navigate the challenging environment. The Group achieved growth well ahead of its strategic targets and maintained its focus on cost discipline while investing in key priority areas of growth.

FBC Bank Limited (FBC Bank)

FBC Bank made a profit before tax of ZWL299 billion, representing a 150% increase from the previous year's ZWL120 billion. The impressive performance was driven by strong growth in the lending portfolio and increased transactional fees, thanks to the Group's digitalization strategy. As of 31 December 2023, FBC Bank's lending portfolio was valued at ZWL1.4 trillion, driving interest income to ZWL184.6 billion, registering a 36% growth from the previous year.

The Bank's total payments and processing income improved by 182% to ZWL204.6 billion from ZWL72.6 billion in the previous year, benefitting from the Group's paperless banking initiatives. The Bank has deployed 6 004 Point of Sale machines into the market and has over 300,000 active accounts across its digital banking channels.

Looking ahead, FBC Bank will continue to implement strategies to grow and hedge its balance sheet in both local and foreign currency terms.

FBC Building Society

The Building Society achieved a surplus position of ZWL85.4 billion, which represents a growth of 166% compared to the previous year. The Society's income performance is derived mainly from fair value gains achieved through its investment properties, in line with the Group's value preservation strategy. The Building Society is committed to reducing the country's housing backlog as it undertakes housing development and student accommodation projects, following the Country's Vision 2030.

During the review period, the Building Society constructed 98 high-density cluster homes at the Zvishavane Eastlea project and 13 low-density townhouses at the GlenLorne project in Harare. Rental income from the leasing of investment properties contributes to foreign currency income generation. The Fontaine Ridge Phase 1A project, with 149 units, and Phase 1B project, with 109 units, both have a 100% occupancy rate. The Zvishavane Eastlea Phase 2 project, comprising 24 housing units, had a 95% occupancy rate. In 2024, the Building Society is exploring project funding for other property segments, such as retail and commercial properties. Additionally, the Society has started to incorporate climate-proofing methodologies into its project designs, to address climate risk-related concerns and create sustainable communities.

Microplan Financial Services

Microplan Financial Services experienced a significant increase in profitability from ZWL1.6 billion to ZWL9.01 billion, which represents a growth of 463%. The growth was due to a heightened demand for loans by micro, small-to-medium enterprises, as well as low-income households seeking to supplement their incomes. Net income also improved from ZWL7.8 billion to ZWL66.3 billion, driven by robust growth in vendor financing partnerships across the information, communications, technology, solar, and agriculture sectors. Microplan's net interest income for the year of ZWL61.4 billion accounted for 93% of its net income.

The microfinance sector plays a crucial role in achieving the country's goal of becoming an upper-middle-income society by 2030. It provides essential financial services to low-income and marginalized communities, as well as micro and small enterprises. In 2023, Microplan introduced its digital lending platform, which is expected to significantly boost earnings and create sustainable profitability going forward. With the digitalization of financial services, the long-term outlook for the microfinance sector is expected to be robust in terms of outreach and profitability.

FBC Securities

In 2023, the Zimbabwe Stock Exchange faced another tough year in terms of constrained trading liquidity. Barring tight liquidity conditions which prevailed especially in the second half of the year, the Zimbabwe Stock Exchange achieved positive real returns when compared to inflation altitudes and interbank exchange rate developments. The benchmark All Share Index (ALSI) registered a year-to-31 December 2023 gain of 981.54%.

The Victoria Falls Stock Exchange however, saw a rise in market capitalization by 74% to US$1.2 billion due to the transfer listings from ZSE by some companies. They All Share Index declined by 25.69%.

As a result of the limited trading liquidity in the equities market, FBC Securities recorded a profit before tax of ZWL713 million. The unit remains strategic to the Group's deal origination, structuring, and execution in capital market transactions.

FBC Insurance Company

FBC Insurance reported a ZWL3.8 billion profit before tax, up 65% from last year's ZWL2.3 billion. The gap between the premiums collected and claims paid has been widening due to the foreign exchange rate differentials in the economy. This has made it difficult for industry players to meet the expectations of both policyholders and fund members. As a result, FBC Insurance is focusing on increasing the underwriting of foreign currency-denominated businesses to preserve value.

During the review period, Statutory Instrument 81 of 2023, also known as "no insurance premium, no cover," was introduced to protect the insurance industry from dishonest creditors. The regulation aims to enhance the industry's liquidity and claims settlement capacity. As a result, FBC Insurance will continue to evaluate the company's asset and liability management strategies to align revenues with the risk-based capital requirements.

FBC Reinsurance Limited

FBC Reinsurance reported a profit before tax of ZWL7.3 billion, rebounding from a loss of ZWL2.6 billion in the previous year. The company's investment income contributed significantly to this outcome.

To enhance its product portfolio, FBC Reinsurance is developing new products focusing on Agriculture, Health, and Funeral business. The introduction of these new product segments is aimed at increasing the company's underwriting capacity and improving the quality of earnings. Furthermore, FBC Reinsurance is a signatory to the Nairobi Declaration on Sustainable Insurance, which is supported by the United Nations Environmental Programme (UNEP). The declaration encourages insurance practitioners in Africa to collaborate in the implementation of sustainable insurance solutions. Leveraging its geographical footprint in Botswana, FBC Reinsurance aims to explore opportunities to collaborate in the deployment of sustainable insurance risk solutions.

Our Compliance Priorities

The Group has unwaveringly, maintained its commitment to compliance and regulatory excellence amidst a rapidly changing financial landscape. Over the past year, we have proactively monitored regulatory changes and made necessary adjustments to our policies, procedures, and systems to ensure strict alignment with the latest standards.

Our compliance efforts are driven by a steadfast commitment to integrity, transparency, and accountability. We strongly believe in fostering a culture of compliance throughout the organization, where every employee understands their role in upholding the highest ethical standards and complying with applicable laws and regulations.

Our Digital Transformation Journey

The digitalization thrust of the Group is a key focus area, aimed at providing convenience to customers. To achieve this, the internal software development teams were strengthened to deliver solutions within the shortest possible time. As a result, seamless integrations with customers, back-office automation for increased efficiency, reduced turnaround for compliance with regulators and faster deployment of new products and services were achieved.

In 2023, FBCH completed a data centre upgrade to ensure that its infrastructure continues to provide uninterrupted service. Disaster recovery and business continuity capability remain critical to the operations of the organization. During the review period, the Group also invested in sound infrastructure at its Disaster Recovery site and conducted regular drills to ensure the ability to recover in the event of a disaster.

Furthermore, the organization has included the technology team in its sustainability initiatives to reduce FBCH's carbon footprint and ensure that electronic waste is disposed of in an environmentally friendly manner. In 2024, FBCH will continue to focus on enhancing service delivery through its electronic channels and innovating its technology for increased customer satisfaction.

Our People

FBCH is an equal opportunity employer that highly values its human capital, which is its most valuable asset. Our company firmly believes that the well-being and wellness of employees are crucial factors in ensuring their productivity and service delivery to our customers.

The Group is committed to creating a safe and healthy work environment that is free from any form of harassment, violence, bullying, and intimidation. This is to ensure that our employees remain focused on their work and deliver their best performance for the benefit of our stakeholders. Our employee relations are sound, and we have achieved high levels of employee engagement, experience, and fulfilment, due to these policies.

FBCH is a learning organization that ensures our skills and talent remain relevant in this fast-changing business environment. We have built a strong culture that is focused on customer service, performance, digitalization, compliance, ethics, innovation, and change, through our employees.

Our Transformative Journey Towards Sustainability

The Group has a vibrant human resource base, a business-oriented mindset, and a desire to impact the communities it serves. Over the past three years, we have adopted a three-dimensional approach to capital allocation, encompassing risk, return, and impact. As such, we have integrated social and environmental safeguards as part of our transaction cycle.

In 2023, we partnered with the Rural Electrification Fund (REF) to construct a 50m3 biogas digester and also donated farming implements to Shungu Dzevana Children's Home. We aim to create sustainable and self-sufficient communities, prioritizing shared economic value.

Additionally, we participated in COP28, which was held in Dubai, United Arab Emirates, in November and December 2023 under the slogan "Unite. Act. Deliver". This annual global platform allowed us to interact with international financial institutions, multilateral development banks, impact investors, and United Nations financial mechanisms to mobilize climate finance for the country.

Going forward, we will take the lessons learned and progress made in this transformative year, to continuously shape our collective journey towards a more sustainable and equitable future.

Outlook

The El Nino effect

The impending drought caused by El Niño is expected to significantly impact various industries, including agriculture, energy, food and nutrition, water, education, health and wildlife. Zimbabwe is taking decisive action by prioritizing private financing to achieve its climate change targets and transition towards green and inclusive growth. To facilitate this, the country has developed the National Climate Change Fund, Food Relief Program, and Climate Finance Facility. The Group is actively pursuing opportunities for collaboration to support Zimbabwe's national development priorities.

Financial Markets

In 2024, we anticipate broader financial market regulations, as both monetary and fiscal authorities strive to address market liquidity, price and exchange rate disparities, as well as public debt arrears to support economic growth and job creation. In this environment, the Group is well-prepared to leverage market opportunities and sustain shareholder value. It is critical to maintain an efficient and cost-effective business, coupled with the agility to move and take advantage of opportunities.

The Acquisition of Standard Chartered Bank Zimbabwe.

The process of acquiring Standard Chartered Bank Zimbabwe (SCBZ) is currently underway. We anticipate a seamless integration of operations and reporting in the second half of 2024. In the meantime, Standard Chartered Zimbabwe will operate as a semi-autonomous business.

Appreciation

In closing, I wish to express my sincere gratitude to all our clients for choosing FBC as your financial services partner. We are truly humbled by the trust that you place in us and commit ourselves to building a partnership that goes beyond transactional interactions.

I would also like to extend my appreciation to the FBC Holdings Limited Team, including the Board of Directors and Management. Your invaluable insights and unwavering dedication to serving our clients, have been the cornerstone of our success. Despite the challenging operating environment, I am confident that we will continue to work together to nurture sustainable solutions that promote the financial well-being of the communities we serve.

On behalf of the FBCH Group Board, Management, and Staff Members, I wish to express my profound gratitude to my predecessor, Dr John Mushayavanhu, who served the entity exceptionally well for over two and a half decades. During his tenure, Dr John Mushayavanhu championed FBCH's evolution, leading to significant market share growth across key business segments and the transformation of FBCH into a solid-performing brand.

Trynos Kufazvinei Group Chief Executive

30 March 2024

Net interest income

Fee and commission income Fee and commission expense

Net fee and commission income

Revenue

Cost of sales

Net income from property sales

Insurance revenue

Insurance service expense

Net revenue/(expenses) from reinsurance contracts

Insurance service result

Revenue

Net foreign currency dealing and trading income Net gain from financial assets at fair value through profit or loss Other operating income

Total other income

Total net income

Credit impairment losses

Other operating expenses

Monetary gain/(loss)

Profit before income tax

Income tax expense

Profit for the year

Other comprehensive income/(loss)

Items that will not be reclassified to profit or loss Gains/(loss) on property revaluation

Related tax

Gain on financial assets at fair value through other comprehensive income Related tax

• 18 233 150 837

  18.1

  19 19.1

• 20 120 083 337

• 23 (113 561 440)

  14.1

  21

• 22 152 362 037

  5.4

• 23 (901 865 008)

  24

  Items that may be subsequently reclassified to profit or loss Foreign operations - foreign currency translation differences Related tax

  Total other comprehensive income/(loss), net income tax

  Total comprehensive income for the year

  Profit attributable to:

  Equity holders of the parent Non - controlling interest

  Profit for the year

  Total comprehensive income attributable to: Equity holders of the parent

  Non - controlling interest

  Earnings per share (ZWL cents)

  Basic earnings per share

  Diluted earnings per share

  Headline earnings per share

  Diluted headline earnings per share

  25.4

  25.3

  25.2

  25.1

  384 641 897 (144 886 870)	233 522 644 (85 559 364)
  239 755 027	147 963 280
  233 150 837 (1 679 058)	143 414 421 (797 966)
  231 471 779	142 616 455
  - -	- -
  -	-
  120 083 337 (113 561 440) (18 943 638)	69 100 954 (73 199 882) (8 770 056)
  (12 421 741)	(12 868 984)
  458 805 065	277 710 751
  574 648 769 84 709 378 152 362 037	560 552 053 86 665 447 265 917 980
  811 720 184	913 135 480
  1 270 525 249	1 190 846 231
  (53 585 432) (901 865 008) 88 442 674	(53 585 432) (560 956 671) -
  403 517 483	576 304 128
  (76 130 389)	(97 886 118)
  327 387 094	478 418 010
  137 686 183 (27 041 912) 1 290 171 (46 008)	218 550 301 (42 710 972) 1 230 414 (56 111)
  111 888 435	177 013 632
  3 108 228 -	5 285 920 -
  114 996 662	182 299 552
  442 383 756	660 717 562
  327 243 720 143 374	478 312 818 105 192
  327 387 094	478 418 010
  441 981 505 402 251	660 097 874 619 688
  442 383 756	660 717 562
  53 593.92 53 593.92 53 948.31 53 948.31	78 335.07 78 335.07 78 379.46 78 379.46

  142 166 644

• 239 755 027

  (1 679 058)

  231 471 779

  - -

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  458 805 065

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82 823 874

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(64 488 164)

113 711 550

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30 800 633 (4 979 696)

89 525

(3 100) 25 907 362

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28 547 505

88 791 483

60 177 706

66 272

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88 612 802 178 681

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147 963 280

143 414 421

(797 966)

142 616 455

- -

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69 100 954 (73 199 882) (8 770 056)

(12 868 984)

277 710 751

560 552 053

86 665 447

265 917 980

913 135 480

1 190 846 231

(53 585 432)

(560 956 671)

-

576 304 128

(97 886 118)

478 418 010

218 550 301 (42 710 972)

1 230 414

(56 111) 177 013 632

5 285 920 -

182 299 552

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8 508 693

21 400 724

68 956 136

102 556 168

(4 575 668)

(50 119 206)

-

47 861 294

(9 146 004)

38 715 290

16 001 408 (2 641 445)

56 026

(2 515) 13 413 474

549 415 -

13 962 889 52 678 179

38 708 407

6 883

38 715 290

52 617 511 60 668

52 678 179

• 53 593.92

  • 9 568.25

    • 78 335.07

      • 6 154.63

• 53 593.92

  • 9 568.25

    • 78 335.07

      • 6 154.63

• 53 948.31

  • 9 567.93

    • 78 379.46

      • 6 153.07

• 53 948.31

• 9 567.93

• 78 379.46

• 6 153.07

*The historical amounts are shown as supplementary information. This information does not comply with IFRS® Accounting Standards in that it has not taken into account the requirements of International Accounting Standard 29 - Financial Reporting for Hyperinflationary Economies. As a result the auditors have not expressed an opinion on this historical financial information.

** This is due to initial application of IFRS 17 (refer to note 2.1)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2023

ASSETS

Balances with other banks and cash Financial assets at amortised cost Loans and advances to customers Trade and other receivables Insurance contract assets Reinsurance contract assets Bonds and debentures Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Inventory

Prepayments and other assets Current income tax asset Deferred tax assets Investment property Intangible assets Property and equipment Right of use asset

Total assets

EQUITY AND LIABILITIES

Liabilities

Deposits from customers Deposits from other banks Borrowings

Insurance contract liabilities Reinsurance contract liabilities Trade and other payables Current income tax liability Deferred tax liability Lease liability

Total liabilities

Equity

Capital and reserves attributable to equity holders of the parent entity Share capital and share premium Other reserves

Retained profits

Total equity, excluding non controlling interest

Non controlling interest in equity

Audited Inflation Adjusted

Unaudited Historical Cost*

31 Dec 2023

Note

ZWL ('000)

4 5.5

• 5.1 1 589 110 045

• 5.2 734 934

• 14 19 912 156

• 14 19 921 685 -

• 6 122 163 188

• 7 1 206 639

• 8 5 276 220

• 9 164 568 434

• 10 326 214 413

• 11 2 236 599

• 12 239 787 402

  3 393 891 910 1 593 496 137 1 042 161 456 3 389 407 631

• 13.1 1 017 589 872

• 13.2 109 706 818

• 13.3 716 918 176

• 14 73 283 220

• 14 9 246 112

• 15 628 002 363

  2 688 013 578 1 300 413 693

• 16.3 14 451 585

218 093 199

31 Dec 2022 Restated** ZWL ('000)

01 Jan 2022

Restated** ZWL ('000)

31 Dec 2023

ZWL ('000)

31 Dec 2022 Restated** ZWL ('000)

Total equity

802 054 951 94 871 819

01 Jan 2022 Restated** ZWL ('000)

402 701 996

291 387 433 32 537 772

802 054 951

38 821 740

83 802 420

17 639 587

94 871 819

719 173 993

388 747 113 1 589 106 827

4 018 234

8 078 817

1 969 724

149 659 682

23 533 213

734 934

3 012 507

836 196

16 997

1 139 191

19 912 156

6 212 557 -

626 904

256 480

5 528 941

114 638

70 155 755

19 921 685 -60 148 704

124 182 878

1 018 865

1 292 835 -

334 703

6 940

14 987 164

3 724 820

2 576 963

1 206 639

4 206 582

92 142 221

212 026

156 000

5 101 118

2 158 210

110 068 371

158 666 880

• 1 224 225

  315 340

  102 710

  18 534 613

  6 546 710

  2 574 889

  453 446

  1 224 225

  848 614

  535 835

  27 450

  10 450 096

  3 159 117

  8 382 302

  132 843 463

  2 004 634

  149 384

  68 989 355

  326 214 413

  2 037 445

  27 644 769

  4 176 377

  2 145 765

  155 071

  101 197 951

  66 490

  16 479

  66 935 992

  239 787 402

• 3 760 586

  21 059 327

  4 052 073

  2 927 843

  2 846 771

  827 239

  531 377 844

  428 809 870 1 017 589 872

  64 880 551

  149 280

  75 027

  329 806 332

  62 784 674

  110 579 907

  25 958 666

  42 708 193

  109 706 818

  327 543 986

  13 501 664

  2 585 406

  139 783 131

  716 918 176

  19 377 067

  68 162 013

  8 461 987

  15 117 706

  73 283 220

  7 518 740

  3 591 139

  915 174

  3 103 464

  289 472 499

  9 246 112

  165 508 211

  619 241 197

• 7 626 104

  1 564 652

  187 873

  57 978 707

  9 635 885

  1 718 488

  6 388 594

  7 626 104

  122 330 164

  357 618

  386 743

  57 453 618

  10 850 350

  125 076 339

  3 310 749

  10 555 653

  675 817

  1 070 900

  1 365 205

  3 310 749

  813 634 724 2 681 998 587

  222 855

  82 645

  266 514 208

  48 890 196

  14 451 585

  14 451 585

  14 090

  14 090

  14 090

  105 399 387

  472 543 987

  84 705 211

  198 423 262

  17 070 518

  4 515 727

  172 844 162

  129 161 307

  508 280 080

  46 135 592

  9 353 404

  705 088 771

  292 695 134

  228 318 103

  706 717 432

  63 220 200

  13 883 221

  789 561

  387 310

  208 629

  691 612

  71 924

  11 257

  705 878 332

  293 082 444

  228 526 732

  707 409 044

  63 292 124

  13 894 478

  Fair value adjustment on investment property Net unrealised exchange gains and losses Fair value adjustment on financial assets at fair value through profit or loss

  Profit/(loss) on disposal of property and equipment Depreciation right of use asset

  Interest on lease liability Provisions*

  Net cash (used)/generated before changes in operating assets and liabilities

  Decrease in financial assets at amortised cost Decrease in loans and advances Decrease/(increase) in trade and other receivables

  (Increase) in insurance contract assets (Increase) in reinsurance contract assets Decrease in bonds and debentures

  • 22 (136 405 952) (289 631 698)

    Decrease in financial assets at fair value through profit or loss (Increase)/decrease in inventory

    Decrease in prepayments and other assets Increase in investment property

    Decrease in deposits from customers Decrease in deposits from other banks Increase in insurance contract liabilities (Decrease)/increase in reinsurance contract liabilities Increase/(decrease) in trade and other payablesIncome tax paid

    Interest on lease liability paid

    Net cash generated from operating activities

    Cash flows from investing activities Purchase of intangible assets Purchase of property and equipment Proceeds from sale of property and equipment

    Net cash used in investing activities

    Cash flows from financing activities Lease liability principal payments Proceeds from borrowings Repayment of borrowings

    Dividend paid to the Company's shareholders Purchase of treasury shares

    Net cash used in financing activities

    Net increase in cash and cash equivalents

    Cash and cash equivalents at beginning of the year

    Effect of changes in exchange rates

    Effects of inflation on cash and cash equivalents

    22

    403 517 483 (88 442 674) 7 751 461 252 229 53 585 432 (136 405 952) (289 631 698) (84 709 378) 2 163 896 1 064 591 445 295 41 475 361	576 304 128 - 4 049 096 31 172 53 585 432 (255 772 271) (608 531 273) (86 665 447) 271 075 470 897 296 864 41 475 361
    (88 933 954)	(274 484 966)
    33 421 271 374 561 034 3 787 049 (4 874 856) (10 863 524) - 118 200 477 (1 069 639) 126 146 580 (22 940 532) (235 972 502) (163 172 544) 51 553 147 (7 657 558) 258 229	2 678 348 (194 950 060) 605 011 (7 260 459) (15 783 246) - 62 968 266 (1 842 871) 57 599 094 (13 162 419) 184 825 435 (111 793 657) 67 339 075 (1 703 471) 222 990 855
    172 442 678 (60 914 479) (445 295)	(21 975 065) (60 522 087) (296 864)
    111 082 904	(82 794 016)
    (451 383) (14 500 856) 3 625 776	(119 754) (7 270 175) 3 106 240
    (11 326 463)	(4 283 689)
    342 514 84 357 272 (329 978 847) (29 496 988) (90 881)	1 939 039 17 844 570 (4 084 173) (16 574 769) (25 872)
    (274 866 930)	(901 205)
    (175 110 489) 402 701 996	(87 978 910) 83 802 420
    804 920 345 (230 456 901)	806 231 441 -
    802 054 951	802 054 951

    (51 464 113)

    (84 709 378)

  2 163 896

  1 064 591

  445 295

  41 475 361

  (88 933 954)

  33 421 271

  374 561 034

  3 787 049

  (4 874 856)

  (10 863 524)

  -

  118 200 477

  (1 069 639)

  126 146 580

  (22 940 532)

  (235 972 502)

  (163 172 544)

  51 553 147

  (7 657 558)

  258 229

  172 442 678 (60 914 479)

  (445 295)

  111 082 904

  (451 383) (14 500 856)

  3 625 776

  (11 326 463)

  342 514

  84 357 272

  (329 978 847)

  (29 496 988)

  (90 881)

  (274 866 930)

  (175 110 489)

  804 920 345

  (230 456 901)

  34 054 316

  (47 936 016)

  (1 969)

  948 397

  2 240 635

  61 553 226

  206 010 201

  10 525 841

  162 393 254

  (3 737 468)

  (1 873 316)

  (683 616)

  114 638

  37 928 966

  894 536

  54 868 295

  (12 417 408)

  (158 968 146)

  (55 717 141)

  4 259 362

  4 415 276

  (52 387 355)

  195 625 919 (25 902 222) (2 240 635)

  167 483 062

  (364 264) (10 687 380)

  209 776

  (10 841 868)

  (1 323 774)

  295 963 248

  (357 169 368)

  (16 494 851)

  (7 740 918)

  (86 765 663)

  69 875 531

  291 387 433

  312 549 811

  (271 110 779)

  (255 772 271)

  (608 531 273)

  (86 665 447)

  271 075

  470 897

  296 864

  41 475 361

  (274 484 966)

  2 678 348

  (194 950 060)

  605 011

  (7 260 459)

  (15 783 246)

  -

  62 968 266

  (1 842 871)

  57 599 094

  (13 162 419)

  184 825 435

  (111 793 657)

  67 339 075

  (1 703 471)

  222 990 855

  (21 975 065)

  (60 522 087)

  (296 864)

  (82 794 016)

  (119 754) (7 270 175) 3 106 240

  (4 283 689)

  1 939 039

  17 844 570

  (4 084 173)

  (16 574 769)

  (25 872)

  (901 205)

  (87 978 910)

  83 802 420

  806 231 441

  -

  (19 973 502)

  (35 911 521)

  (8 508 693)

  (9 814)

  85 168

  272 768

  10 685 011

  (312 564)

  (2 610 966)

  (23 570 434)

  (819 199)

  (370 424)

  (958 132)

  6 940

  (2 753 651)

  (212 629)

  (4 427 475)

  (2 241 598)

  30 195 487

  (5 292 573)

  2 675 965

  1 376 779

  13 768 222

  4 453 749 (5 556 182)

  (272 768)

  (1 375 201)

  (57 618) (1 721 316)

  27 949

  (1 750 986)

  (19 211)

  61 590 051

  (53 700 136)

  (1 926 219)

  (1 354 314)

  4 590 171

  1 463 984

  17 639 587

  64 698 849

  -

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Audited Inflation Adjusted

Balance as at 1 January 2022, as previously stated Changes on initial application of IFRS 17**

Restated balance as at 1 January 2022

Profit for the year

Other comprehensive income: Gain on revaluation of property and equipment, net of tax

Foreign operations - foreign translation differences Gain on financial assets at fair value through other comprehensive income

Total other comprehensive income Total comprehensive income

Transaction with owners: Dividend declared and paid Treasury share purchase

Total transactions with owners recognised directly in equity

Restated balance as at 31 December 2022

Balance as at 1 January 2023

Profit for the year

Other comprehensive income: Gain on revaluation of property and equipment, net of tax Revaluation realised

Foreign operations - foreign translation differences Gain on financial assets at fair value through other comprehensive income

Total other comprehensive income Total comprehensive income

Transaction with owners: Dividend declared and paid Treasury share purchase

Total transactions with owners recognised directly in equity Balance as at 31 December 2023

Unaudited Historical Cost*

Balance as at 1 January 2022, as previously stated Changes on initial application of IFRS 17**

Restated balance as at 1 January 2022

Profit for the year

Other comprehensive income: Gain on revaluation of property and equipment, net of tax

Foreign operations - foreign translation differences Gain on financial assets at fair value through other comprehensive income Total other comprehensive income Total comprehensive income

Transaction with owners: Dividend declared and paid Treasury share purchase

Total transactions with owners recognised directly in equity

Restated balance as at 31 December 2022

Balance as at 1 January 2023

Profit for the year

Other comprehensive income Gain on revaluation of property and equipment, net of tax Revaluation realised

Foreign operations - foreign translation differences Gain on financial assets at fair value through other comprehensive income Total other comprehensive income Total comprehensive income

Transaction with owners: Dividend declared and paid Treasury share purchase

Total transactions with owners recognised directly in equity Balance as at 31 December 2023

Share capital ZWL ('000)

• 6 892 -

• 6 892 -

  - - -

  - -

  - -

  -

• 6 892

• 6 892 -

  - - - -

  - -

  - -

  -

• 6 892

7 -

7 -

- - - - -

- -

- 7 7 -

- - - - - -

- -

- 7

Share premium ZWL ('000)Retained profits ZWL ('000)

• 14 444 693 -

• 14 444 693 -

  - - -

  - -

  - -

  -

• 14 444 693

• 14 444 693

• - 327 243 720

- - - -

-

• - 329 196 813

- -

- 14 444 693

• 14 083 -

• 14 083 -

  - - - - -

  - -

  -

• 14 083

• 14 083

• - 478 312 818

- - - - -

• - 478 719 257

- -

- 14 083

(8 778 249)

129 161 307 60 177 706

- - -

- 60 177 706

(16 494 851)

-

(16 494 851)

172 844 162 172 844 162

- 1 953 093 - -

1 953 093

(29 496 988)

-

(29 496 988) 472 543 987

9 780 718 (427 314)

9 353 404

38 708 406

- - - - 38 708 406

(1 926 219)

-

(1 926 219)

46 135 592 46 135 592

- 406 439 -

- 406 439

(16 574 769)

-

(16 574 769) 508 280 080

Translation reserve ZWL ('000)

- -

- -

-

• 2 640 143

  -

• 2 640 143

• 2 640 143

- -

- 2 640 143 2 640 143 -

- -

• 3 108 228

  -

• 3 108 228

• 3 108 228

- -

- 5 748 371

- -

- -

-

549 415

-

549 415

549 415

- -

- 549 415 549 415 -

- -

• 5 285 920

  -

• 5 285 920

• 5 285 920

- -

- 5 835 335

Treasury shares ZWL ('000)

(17 310 652 -(17 310 652)

-

- - -

- -

- (7 740 918)

(7 740 918)

(25 051 571)

(25 051 571)

-- - - -

- -

- (90 881)

(90 881) (25 142 452)

(311 545)

-

(311 545)

-

- - - - -

-

• (1 354 314)

• (1 354 314)

• (1 665 859)

• (1 665 859)

-- - - - - -

- (25 872)

(25 872) (1 691 731)

Non distributable reserve ZWL ('000)

67 449 405 -

- - -

- -

- -

-

-

• 1 419 826 -

  - - - - -

  - -

  -

• 1 419 826

• 1 419 826 -

- - - - - -

- -

- 1 419 826

Revaluation reserve ZWL ('000)

-

-

• 25 708 527 - -

• 25 708 527

• 25 708 527

- -

-5

191 477

- -143 374

258

-

-- -6 883

53 784

- -105 192

514

-

-- --(2

(90 881)

38 715 2

(1 9

(1 354

4

-(1

(25 872)

*The historical amounts are shown as supplementary information. This information does not comply with IFRS® Accounting Standards in that it has not taken into account the requirements of International Accounting Standard 29 - Financial Reporting for Hyperinflationary Economies. As a result the auditors have not expressed an opinion on this historical financial information.

** This is due to initial application of IFRS 17 (refer to note 2.1)

NOTES TO THE CONSOLIDATED FINANCIAL RESULTS

For the year ended 31 December 2023

• 1 GENERAL INFORMATION

  FBC Holdings Limited ("the Company") and its subsidiaries (together "the Group") provide a wide range of commercial banking, mortgage financing, micro lending, reinsurance, short-term insurance, stockbroking services and short-term insurance broking.

  The Company is a limited liability company, which is listed on the Zimbabwe Stock Exchange. The Company and its subsidiaries are incorporated and domiciled in Zimbabwe. These consolidated financial statements were approved for issue by the Board of Directors on 28 March 2024

• 2 MATERIAL ACCOUNTING POLICIES

  A full set of the Group's accounting policies is available in the Group's annual report, which is ready for inspection at the Company's registered office. The following paragraphs describe the main accounting policies applied by the Group.

  These policies have been consistently applied to all the years presented, unless otherwise stated.

• 2.1 Basis of preparation

  The Group's consolidated financial results have been prepared with policies consistent with IFRS® Accounting Standards, and the International Financial Reporting Interpretations Committee, ("IFRS IC") interpretations and in the manner required by the Companies and Other Business Entities Act (Chapter 24:31), Banking Act (Chapter 24:20), Insurance Act (Chapter 24:07), Securities and Exchange Act (Chapter 24:25), Building Societies Act (Chapter 24:02), Microfinance Act (Chapter 24:29) and the relevant Statutory Instruments ("SI") SI 62/96, SI 33/99 and SI 33/19. The consolidated financial results have been prepared from statutory records that are maintained under the historical cost convention as modified by the revaluation of financial assets at fair value through profit or loss, through other comprehensive income, investment property, property and equipment and unlisted investments.

  The principal accounting policies

  The principle accounting policies applied in the preparation of the Group consolidation financial statements are in compliance with IFRS and have been applied consistently in all material respects with those of the previous consolidated financial statements. In 2019, the Group adopted the requirements of IAS 29 (Financial Reporting in Hyperinflation Economies).

  IAS 21 (The Effects of Changes in Foreign Exchange Rates)

  As noted in the Group's financial statements, Government promulgated Statutory Instrument ("SI") 33 on 22 February 2019, giving legal effect to the reintroduction of the Zimbabwe Dollar (ZWL) as the legal tender and prescribed for accounting and other purposes, certain assets and liabilities on the effective date would be deemed to be in Zimbabwean Dollars at the rate which was at par with the United Stated Dollar (USD).

The Group adopted the following official cross rates against major currencies for the year ended 31 December 2023.

Currency

British pound ("GBP")

SA rand ("ZAR")

Euro ("EUR")

Pula ("BWP")

United states dollar ("USD")

31 Dec 2023

31 Dec 2022

Cross rate

Cross rate

7 602.4346 846.1084

0.0031 41.3223

6 592.6973 747.6519

444.4806 54.8267

6 104.7200 684.339

The Group has considered which currency is the currency of the primary economic environment in which the Group and Company operates (the "functional currency"). In making this assessment, the Group has used its judgment to determine the functional currency that most faithfully represents the underlying transactions, events and conditions of the Group and Company. The Group concluded that the functional currency of the Group and its subsidiaries is the Zimbabwean Dollar (ZWL) since it is the main currency which represents the transactions of the company based on assessments made as at 31 December 2023. The Group has completed similar assessments for its foreign operations and have concluded, inter alia, that the functional currency of FBC Reinsurance Botswana Pty Limited is the Botswana Pula.

Adoption of the IAS 29 (Financial Reporting in Hyperinflation Economies)

In October 2019, the PAAB issued a pronouncement prescribing that the application of financial reporting in hyperinflation economies had become effective in Zimbabwe, for reporting periods on or after 1 July 2019. These financial statements have been prepared in accordance with IAS 29 together with International Financial Reporting Standards Committee (IFRIC) 7. (Applying Restated Approach under IAS 29), as if the economy had been hyperinflationary from 1 October 2018.

The Group adopted the Zimbabwe Consumer Price Index ("CPI") as the general price index to restate the transactions and balances. Monetary assets and liabilities and non-monetary assets and liabilities carried in the income statement have been restated applying the change in the general price index from dates when the transactions were initially recorded in the Group's financial records (transaction date). A net monetary adjustment was recognized in the statement of profit of loss for the year ended 31 December 2023 and the comparative period.

As noted above, the Group adopted the Zimbabwe Consumer Price Index ("CPI") as the general price index and used the monthly indices to inflation adjust the historical figures.

The factors used in the periods under review are as follows:

IFRS 17 establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts, reinsurance contracts and investment contracts with discretionary participation features. It introduces a model that measures groups of contracts based on the Group's estimates of the present value of future cash flows that are expected to arise as the Group fulfils the contracts, an explicit risk adjustment for non-financial risk and a contractual service margin (CSM). Under IFRS 17, insurance revenue in each reporting period represents the changes in the liabilities for remaining coverage that relate to services for which the Group expects to receive consideration and an allocation of premiums that relate to recovering insurance acquisition cash flows. In addition, investment components are no longer included in insurance revenue and insurance service expenses.

The Group no longer applies shadow accounting to insurance-related assets and liabilities. Insurance finance income and expenses, disaggregated between profit or loss and OCI for life risk and non life contracts, are presented separately from insurance revenue and insurance service expenses. The Group applies the premium allocation approach (PAA) to simplify the measurement of contracts in the non-life segment, except for groupsof acquired contracts that do not qualify for the PAA. When measuring liabilities for remaining coverage, the PAA is similar to the Group's previous accounting treatment. However, when measuring liabilities for incurred claims, the Group now discounts the future cash flows (unless they are expected to occur in one year or less from the date on which the claims are incurred) and includes an explicit risk adjustment for non-financial risk.

Previously, all acquisition costs were recognised and presented as separate assets from the related insurance contracts ('deferred acquisition costs') until those costs were included in profit or loss and OCI. Under IFRS 17, only insurance acquisition cash flows that arise before the recognition of the related insurance contracts are recognised as separate assets and are tested for recoverability. These assets are presented in the carrying amount of the related portfolio of contracts and are derecognised once the related contracts have been recognised. Income and expenses from reinsurance contracts other than insurance finance income and expenses are now presented as a single net amount in profit or loss. Previously, amounts recovered from reinsurers and reinsurance expenses were presented separately.

ii. Transition

Changes in accounting policies resulting from the adoption of IFRS 17 have been applied using a full retrospective approach to the extent practicable. Under the full retrospective approach, at 1 January 2022 the Group: - identified, recognised and measured each group of insurance and reinsurance contracts as if IFRS 17 had always been applied; - identified, recognised and measured any assets for insurance acquisition cash flows as if IFRS 17 had always been applied, except that the recoverability assessment was not applied;

NOTES TO THE CONSOLIDATED FINANCIAL RESULTS (CONTINUED)

- derecognised previously reported balances that would not have existed if IFRS 17 had always been applied. These included some deferred acquisition costs for insurance contracts, intangible assets related to insurance contracts (previously referred to as 'value of business acquired'), insurance receivables and payables, and provisions for levies that are attributable to existing insurance contracts. Under IFRS 17, they are included in the measurement of the insurance contracts;

-

recognised any resulting net difference in equity.

The Group has applied the transition provisions in IFRS 17 and has not disclosed the impact of the adoption of IFRS 17 on each financial statement line item and EPS. The effects of adopting IFRS 17 on the consolidated financial statements at 1 January 2022 are presented in the statement of changes in equity.

The full retrospective approach required assumptions about what Group management's intentions would have been in previous periods or significant accounting estimates that could not be made without the use of hindsight. Such assumptions and estimates included for certain contracts:

• - expectations at contract inception about policyholders' shares of the returns on underlying items at contract inception required for identifying direct participating contracts;

• - assumptions about discount rates, because the Group had not been subject to any accounting or regulatory framework that required insurance contracts to be measured on a present value basis before; and

• - assumptions about the risk adjustment for non-financial risk, because the Group had not been subject to any accounting or regulatory framework that required an explicit margin for non- financial risk before.

These condensed interim consolidated financial statements have been prepared under the historical cost convention and are presented in Zimbabwean dollars ("ZWL") and are rounded to the nearest dollar.

• 2.2 Going concern

  The Group's forecasts and projections, taking account of changes in trading environment and performance, show that the Group should be able to operate within the level of its current financing. After making enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its consolidated financial statements.

• 2.3 Basis of consolidation

• (a) Subsidiaries

  The consolidated financial results combine the financial statements of FBC Holdings Limited ("the Company") and all its subsidiaries. Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

  The Company recognises investments in subsidiaries at cost. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

  The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest's proportionate share of the recognised amounts of acquiree's identifiable net assets. Acquisition related costs are expensed as incurred.

  If the business combination is achieved in stages, the acquisition date carrying value of the acquirer's previously held equity interest in the acquiree is remeasured to fair value at the acquisition date; any gains or losses arising from such remeasurement are recognised through profit or loss.

  Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognised in accordance with IFRS 9 either in profit or loss or as a change to other comprehensive income. Contingent consideration that is classified as equity is not remeasured, and its subsequent settlement is accounted for within equity.

  The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If the total of consideration transferred, non-controlling interest recognised and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognised directly in the statement of comprehensive income.

  Inter-company transactions, balances, income and expenses on transactions between group companies are eliminated. Unrealised profits or losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

• (b) Changes in ownership interests in subsidiaries without change of control

  Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions - that is, as transactions with the owners in their capacity as owners. The difference between fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity within "changes in ownership reserve". Gains or losses on disposals to non-controlling interests are also recorded in equity within "changes in ownership reserve".

• (c) Disposal of subsidiaries

  When the Group ceases to have control any retained interest in the entity is remeasured to its fair value at the date when control is lost, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.

• 2.4 Segment reporting

  An operating segment is a distinguishable component of the Group that is engaged in business activities from which it earns revenues and incurs expenses (including revenues and expenses relating to transactions with other components of the entity); whose operating results are reviewed regularly by the entity's chief operating decision maker ("CODM") to make decisions about resources to be allocated to the segment and to assess its performance; and for which discrete financial information is available.

  Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Group Executive Committee that makes strategic decisions.

  The Group's operating segments have been aggregated based on the nature of the products and services on offer and the nature of the regulatory environment. The CODM is responsible for allocating resources and assessing performance of the operating segments.

  In accordance with IFRS 8-Operating Segments, the Group has the following business segments: commercial banking, microlending, mortgage financing, reinsurance, short-term insurance and stockbroking.

• 3 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

  The Group's financial statements and its financial results are influenced by accounting policies, assumptions, estimates and management judgements, which necessarily have to be made in the course of the preparation of the financial statements.

  The Group makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year. All estimates and assumptions required in conformity with IFRS are best estimates undertaken in accordance with the applicable standard. Estimates and judgements are evaluated on a continuous basis, and are based on past experience and other factors, including expectations with regard to future events. Accounting policies and management's judgements for certain items are especially critical for the Group's results and financial situation due to their materiality.

  The areas involving critical accounting estimates and judgements include determination of functional curreny, impairment allowances, income taxes, insurance liabilities, inventory, investment property, property and equipment and unlisted investments.

  Audited Inflation Adjusted

  Unaudited Historical Cost

  31 Dec 2023

  31 Dec 2022 Restated** ZWL ('000)

  31 Dec 2023

• 4 BALANCES WITH BANKS AND CASH

• 4.1 Balances with Reserve Bank of Zimbabwe ("RBZ")

  Current account balances

  Balances with banks and cash

  Notes and coins

  Other bank balances

  Balances with banks and cash (excluding bank overdrafts)

  Current Non-current

  Total

• 4.2 Cash and cash equivalents

  Cash and bank balances comprise of balances with less than three months maturity from date of acquisition, including cash on hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

  Cash and cash equivalents include the following for the purposes of the statement of cash flows;

  Current account balance at Reserve Bank of Zimbabwe ("RBZ") (note 4.1)

  Balances with banks and cash (note 4.1)

• 5 FINANCIAL ASSETS

  ZWL ('000)

  ZWL ('000)

  16 490 534 144 610 504 640 953 913	16 490 534 144 610 504 640 953 913
  785 564 417	785 564 417
  802 054 951	802 054 951
  802 054 951 -	802 054 951 -
  802 054 951	802 054 951
  16 490 534 785 564 417	16 490 534 785 564 417
  802 054 951	802 054 951
  1 085 694 157 560 143 356	1 085 694 157 560 140 138
  1 645 837 513 (56 727 468)	1 645 834 295 (56 727 468)
  1 589 110 045	1 589 106 827

  16 490 534

  144 610 504 640 953 913

  785 564 417

  802 054 951

  802 054 951 -

  802 054 951

  16 490 534

  785 564 417

  802 054 951

  72 341 796

  59 543 764 270 816 436

  330 360 200

  402 701 996

  402 701 996 -

  402 701 996

  72 341 796

  330 360 200

  402 701 996

  16 490 534

  144 610 504

  640 953 913

  785 564 417

  802 054 951

  802 054 951 -

  802 054 951

  16 490 534

  785 564 417

  802 054 951

  31 Dec 2022 Restated** ZWL ('000)

  15 054 352

  12 391 077

  56 356 991

  68 748 068

  83 802 420

  83 802 420 -

  83 802 420

  15 054 352

  68 748 068

  83 802 420

  Current Non-current

  Total

  • 5.3 Irrevocable commitments

    734 934	734 934
    734 934 -	734 934 -
    734 934	734 934
    734 934 -	734 934 -
    734 934	734 934

    734 934

    734 934

    734 934 -

    734 934

    • 4 018 234

    4 018 234 -

    4 018 234

    734 934 -

    734 934

    836 196

    836 196 -

    836 196

    There are no irrevocable commitments to extend credit, which can expose the Group to penalties or disproportionate expense.

  • 5.4 Movement in credit impairment lossesAudited Inflation Adjusted Restated**

    Movement in credit impairment losses Balance at 01 January 2022

    Effects of IAS 29

    Change on application of IFRS 17 Impairment loss allowance

    648 (459)

    Bonds and debentures ZWL ('000)

    - (189)

    Amounts written off /reversals during the year Impairment reversal

    Balance as at 31 December 2022

    Balance at 01 January 2023 Effects of IAS 29

    Change on application of IFRS 17 Impairment loss allowance

    Amounts written off /reversals during the year Impairment reversal

    Balance as at 31 December 2023

    Unaudited Historical Cost Restated**

    Movement in credit impairment losses Balance at 01 January 2022

    Change on application of IFRS 17 Impairment loss allowance

    Amounts written off /reversals during the year Impairment reversal

    Balance as at 31 December 2022

    Balance at 01 January 2023 Change on application of IFRS 17 Impairment loss allowance

    Amounts written off /reversals during the year Impairment reversal

    Balance as at 31 December 2023

  • 5.5 Financial assets at amortised cost Maturing within 1 year

    Maturing after 1 year Gross carrying amount Impairment allowance

  • 6 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

    Listed securities at market value

    Unlisted securities

    - -

    -

    - - - - - -

    -

    39 - (39)

    - -

    -

    - - - - -

    -

    Current Non-current

    Total

    Financial assets at fair value through profit or loss are presented within 'operating activities' as part of changes in working capital in the statement of cash flows.

    Trade and other receivables ZWL ('000)

    1 684 710 (1 194 627) (729 133) 321 927 - (82 877)	181 742 (128 873) - 357 822 - -	10 686 797 (7 578 000) (729 133) 21 987 795 (69 051) (82 877)
    -	410 691	24 215 531
    - - (34 698) 98 199 - (63 501)	410 691 (325 226) - 381 385 - -	24 215 531 (19 176 271) (34 698) 53 585 432 (666 299) (63 501)
    -	466 850	57 860 194
    101 987 (151 733) 66 993 - (17 247)	11 002 - 74 463 - -	646 942 (151 733) 4 575 668 (14 370) (17 247)
    -	85 465	5 039 260
    - (34 698) 98 199 - (63 501)	85 465 - 381 385 - -	5 039 260 (34 698) 53 585 432 (666 299) (63 501)
    -	466 850	57 860 194

    410 691

    1 684 710

    (1 194 627)

    • - 22 930 766

    • - (18 158 866)

    (34 698) 98 199 - (63 501)

    Audited Inflation Adjusted

  • 7 FINANCIAL ASSETS AT FAIR VALUE THROUGH

    Changes in fair values of financial assets at fair value through profit or loss are recorded in 'other operating income' in the statement of comprehensive income. The fair value of all equity securities is based on their bid prices on an active market, the Zimbabwe Stock Exchange and the

    Victoria Falls Stock Exchange at year end.

    OTHER COMPREHENSIVE INCOME

    Listed securities at market value

    Current

    Non-current

  • 8 INVENTORY Raw materials Work in progress

  Loans and at armotised commitmentsadvances ZWL ('000)FinancialUndrawnassets at contractualcost and guarantees ZWL ('000) ZWL ('000)

  8 667 678

  181 742 152 019

  (6 146 244)

  (128 873)

  (107 797)

  (729 133)

  321 927 -

  (82 877)

  20 478 383

  (69 051)

  -

  -

  - 357 822 - -

  - 829 852 - -

  -22 930 766

  874 074

  410 691 (325 226)

  874 074 (692 179)

  - 52 621 866

  (666 299)

  -

  - 381 385 - -

  483 982 - -

  -56 727 467

  466 850

  665 877

  (151 733)

  101 987

  524 711 -11 002 - 74 463 - -9 203 -

  (17 247)

  66 993 -

  4 261 559

  (14 370)

  -

  172 692 - -

  -4 771 900

  85 465

  181 895

  - (34 698) 98 199 - (63 501)

  4 771 900 -85 465 -

  181 895 -

  52 621 866

  (666 299)

  -

  381 385 - -

  483 982 - -

  -56 727 467

  466 850

  665 877

  Unaudited Historical Cost

  31 Dec 2023

  31 Dec 2022 Restated** ZWL ('000)

  31 Dec 2023

  ZWL ('000)

  ZWL ('000)

  Current Non-current

  Total

  34 107 465 61 231 204	34 107 465 61 231 204
  95 338 669 (466 850)	95 338 669 (466 850)
  94 871 819	94 871 819
  76 954 767 45 208 421	78 974 456 45 208 422
  122 163 188	124 182 878
  122 163 188 -	124 182 878 -
  122 163 188	124 182 878
  1 206 639	1 206 639
  1 206 639 -	1 206 639 -
  1 206 639	1 206 639
  626 065 4 650 155	238 683 1 919 527
  5 276 220	2 158 210
  5 276 220 -	2 158 210 -
  5 276 220	2 158 210

  34 107 465

  Total ZWL ('000)

  10 686 797

  (7 578 000)

  (729 133)

  21 987 795

  (69 051)

  (82 877)

  24 215 531

  24 215 531

  (19 176 271)

  (34 698)

  53 585 432

  (666 299)

  (63 501)

  57 860 194

  646 942

  (151 733)

  4 575 668

  • (14 370)

  • (17 247)

  5 039 260

  5 039 260

  (34 698)

  53 585 432

  (666 299) (63 501)

  57 860 194

  31 Dec 2022 Restated** ZWL ('000)

  38 994 815

  61 231 204

  95 338 669

  (466 850)

  94 871 819

  76 954 767

  45 208 421

  122 163 188

  122 163 188 -

  122 163 188

  1 206 639

  1 206 639 -

  1 206 639

  626 065 4 650 155

  5 276 220

  5 276 220 -

  237 616

  39 232 431

  (410 691)

  38 821 740

  44 211 868

  25 943 887

  70 155 755

  70 155 755 -

  70 155 755

  • 1 018 865

  • 1 018 865 -

  • 1 018 865

  188 257

  4 018 325

  4 206 582

  4 206 582 -

  4 206 582

  34 107 465

  61 231 204

  95 338 669

  (466 850)

  94 871 819

  78 974 456

  45 208 422

  124 182 878

  124 182 878 -

  124 182 878

  1 206 639

  1 206 639 -

  1 206 639

  238 683

  1 919 527

  2 158 210

  2 158 210 -

  2 158 210

  8 114 834

  49 448

  8 164 282

  (85 465)

  8 078 817

  9 588 232

  5 398 932

  14 987 164

  14 987 164 -

  14 987 164

  212 026

  212 026 -

  212 026

  33 711

  281 629

  315 340

  315 340 -

  315 340

10

RBZ NNCD and auction system balances* Capital work in progress

Deferred employee benefit on staff loan Other

Current Non-current

Total

* RBZ NNCD and auction system balances refer to prefunded customer positions upon allotment of foreign currency from the Central bank. The Group did not impair prepayments and other assets as they comprise of non financial assets and short term financial assets held with the Reserve Bank of Zimbabwe. Any expected credit loss on these balances are considered to be immaterial.

INVESTMENT PROPERTY Balance as at 1 January Additions

Fair value adjustment Disposals

Transfer from inventory

Balance as at 31 December

Non-current

Total

11

INTANGIBLE ASSETS Year ended 31 December Opening net book amount Additions

Amortisation charge

Closing net book amount

As at 31 December

Cost

Accumulated amortisation Accumulated impairment

Net book amount

12

PROPERTY AND EQUIPMENTAudited Inflation Adjusted Restated**

Year ended 31 December 2022

Opening net book amount Additions

Revaluation of property Disposals Depreciation

Closing net book amount

As at 31 December 2022

Cost or valuation Accumulated depreciation Accumulated impairment

Net book amount

Year ended 31 December 2023

Opening net book amount Additions

Revaluation of property Disposals Depreciation

Closing net book amount

As at 31 December 2023

Cost or valuation Accumulated depreciation Accumulated impairment

Net book amount

Unaudited Historical Cost Restated**

Year ended 31 December 2022

Opening net book amount Additions

Revaluation of property Disposals Depreciation

Closing net book amount

As at 31 December 2022

Cost or valuation Accumulated depreciation Accumulated impairment

Net book amount

Year ended 31 December 2023

Opening net book amount Additions

Revaluation of property Adjustment to cost Disposals Depreciation

Closing net book amount

As at 31 December 2023

Cost or valuation Accumulated depreciation Accumulated impairment

39 764 288

2 481 742

24 278 406

8 723 170

164 568 434

153 418 102

11 150 332

164 568 434

132 843 463

10 560 502

171 014 581

(3 294 164)

12 380 031

323 504 413

323 504 413

323 504 413

2 037 445 451 383 (252 229)

2 236 599

11 072 823 (8 836 224)

-

2 236 599

2 481 742

19 557 613

689 852

92 142 221

79 290 408

12 851 813

92 142 221

68 989 355

9 940 053

51 436 699 -

2 477 356

132 843 463

132 843 463

132 843 463

2 145 766 364 264 (472 585)

2 037 445

10 621 440 (8 583 995)

-

2 037 445

80 813 474

82 539

24 278 406

10 069 532

158 666 880

147 516 548

11 150 332

158 666 880

27 644 769

6 087 700

285 540 420

(2 843 196)

7 074 720

323 504 413

323 504 413

323 504 413

66 490 119 753 (31 172)

155 071

205 729 (50 629)

(29)

155 071

8 274 962

82 539

4 069 946

385 481

18 534 613

15 860 146

2 674 467

18 534 613

4 176 376

1 762 249

21 226 794 -

479 350

27 644 769

27 644 769

27 644 769

16 480 57 618 (7 608)

66 490

85 975 (19 456)

(29)

66 490

Land and buildingsMachineryComputer equipmentFurniture and office equipment

Motor vehicles

ZWL

ZWL

ZWL

ZWL

ZWLTotal ZWL

• 13.2 Deposits from other banks Money market deposits

  Current Non-current

  Total

  Current

• 13.3 Borrowings Bank borrowings Foreign lines of credit Other borrowingsCurrent Non-current

  Total

  Total deposits and borrowings

• 13.4 Deposit concentration Audited Inflation Adjusted

Agriculture Construction

Wholesale and retail trade Public sector Manufacturing Telecommunication Transport Individuals Financial services Mining

Other

Unaudited Historical Cost

Agriculture

Construction

187 659

1 017 589 872

109 706 818

109 706 818

718 204 498

(1 286 322)

716 918 176

564 438 966

152 479 210

716 918 176 1 844 214 866

530 049 052

1 328 792

531 377 844

64 880 551

64 880 551

328 938 532

(1 394 546)

327 543 986

17 382 423 310 161 563

327 543 986

923 802 381

1 017 402 213

187 659

1 017 589 872

109 706 818

109 706 818

718 204 498

(1 286 322)

716 918 176

564 438 966

152 479 210

716 918 176 1 844 214 866

ZWL ('000)

2023

%

2022 Restated** ZWL ('000)

24 347 514 -

164 775 071 (3 053 429)

161 721 642

162 418 377

161 721 642

148 468 103 - -

161 715 562

65 858 715 (2 275 890)

13 329 031

63 582 825

13 230 382

98 025 782 -

10 876 232 -

13 230 382

39 643 624

63 582 825

13 230 382

63 582 825

2 399 567

(527 395)

(777 539)

(604 166)

(702 817)

119 082

890 574

621 243

(67 209)

(98 650)

21 792

1

2

-

-

Wholesale and retail trade Public sector Manufacturing Telecommunication Transport Individuals Financial services Mining

2 539 733

236 422

674 830 -

(1 997 958)

2 535 424

6 883 455

(24 447)

(213 012)

4 385 953

8 758 702

567 351

(69 791)

3 410 499

6 146 281

9 110 477

(113 569)

10 687 380

29 738 018

66 935 991

(207 807)

Other

(1 759 152)

110 303 385

276 522

110 579 907

13 501 664

13 501 664

68 452 219

(290 206)

68 162 013

3 617 288

64 544 725

68 162 013 192 243 584

%

3% 42 341 920 5%

124 433 321

168 351 122

162 190 647

139 408 582

18 669 888

17 093 545

102 485 764

793 404 498

133 619 921

122 016 325

1 844 214 866

62 541 253

124 433 321

168 351 122

162 190 647

139 408 582

18 669 888

17 093 545

102 485 764

793 404 498

133 619 921

122 016 325

1 844 214 866

7% 55 002 389 6%

9% 70 171 772 9%

9% 97 760 276 11%

8% 73 604 464 8%

1% 38 248 646 3%

1% 37 135 227 3%

6% 42 020 994 4%

43% 365 685 974 41%

7% 52 385 377 6%

6% 49 445 342 4%

100% 923 802 381 100%

3%

7% 11 446 016 6%

9% 14 602 769 9%

9% 20 343 946 11%

8% 15 317 114 8%

1% 1% 6%

43% 76 099 374 41%

7% 10 901 415 6%

6% 10 289 591 4%

100% 192 243 585 100%

(1 541 830)

8 811 368 5%

7 959 556 3%

7 727 853 3%

8 744 583 4%

(1 914 242)

(5 955 631)

3 237 973

5 637 322

12 100 385

16 639 446

101 197 951

Audited Inflation Adjusted

Unaudited Historical Cost

3 658 968 (420 995)

14 980 732 (9 343 410)

24 961 474 (12 861 089)

23 107 412 (6 467 966)

132 567 299 (31 369 348)

-

-

-

-

-

14 INSURANCE AND REINSURANCE CONTRACTS Insurance contracts

Insurance contract liabilities

3 237 973

5 637 322

12 100 385

16 639 446

101 197 951

- Insurance contract balances

- Non-Life

3 237 973

8 422 745 (967 337)

5 637 322

7 455 408

12 100 385

1 763 836

16 639 446

1 068 484

101 197 951

7 455 408

3 388 512

5 767 280

2 690 654

14 500 856

- Assets for insurance acquisition cash flows

2 999 940 -

(546 341)

2 553 780

699 053 (25 230)

14 363 102

673 823

16 392 961

491 415 -

134 335 565

673 823

- Non-Life

(74 651)

673 823

(2 281 920)

153 747

(138 938)

(14 489)

(2 495 509)

43 150

(1 952 786)

(1 931 878)

(2 542 917)

(7 751 461)

Net Insurance contract liabilities

9 552 177

28 016 969

33 041 206

239 787 402

Insurance contract assets

- Insurance contract balances

- Non-Life

20 848 372 (11 296 195)

-42 809 935 (14 792 966)

-

42 052 089 (9 010 883)

9 552 177

278 908 211 (39 120 809)

1 471 081 (290 671)

-

-

-

-

- Assets for insurance acquisition cash flows

- Non-Life

28 016 969

1 923 351

33 041 206

1 180 411

239 787 402

1 180 411

Net Insurance contract assets

Reinsurance contracts Reinsurance contract assets

418 603

1 180 411

528 617

(195 182)

551 539

379 510

579 190

(1 710)

4 052 073

1

- Non-Life

704 091

2 641 443 (129 485)

572 774

2 304 836

1 721 316

2 511 950

1 375 881

2 511 950

2 584 804

2 511 950

15 907 522

(92 414)

(4 225)

(12 200)

(18 135)

Reinsurance contract liabilities

(234 156)

3 771 359 (308 346)

(603 449)

1 352 261

- Non-Life

3 462 761

3 462 761

21 059 327

3 462 761

21 911 968

The following sets out the carrying amounts of insurance and reinsurance contracts expected to be (recovered) settled more than 12 months after the reporting date

(852 382)

(252)

(259)

21 059 327

Insurance contract assets Insurance contract liabilities Reinsurance contract assets Reinsurance contract liabilities

21 059 327

7 270 175

Maximum exposure to credit risk from Insurance contracts Maximum exposure to credit risk from Reinsurance contracts

5 800 228 - -

7 405 734 -

24 216 303

30 153 496 -

216 043 864

(2 749)

(2 749)

(16 745)

(474 044)

(43 330)

(534 119)

(87 127)

(904 348)

(569 905)

(1 883 550)

(4 049 096)

7 455 408

• 9 588 403

  27 986 391

  33 041 638

  239 787 402

  7 567 765 (112 357)

• 10 783 421 (1 195 018)

28 685 790

(699 390)

35 233 785 (2 191 896)

244 689 138 (4 901 478)

-

-

(9)

(251)

(268)

Unaudited Historical Cost

Changes in the statement of profit or loss and OCI Insurance revenue

Insurance service expense Incurred claims and other insurance service expenses Amortisation of insurance acquisition cash flows Losses and reversals of losses on onerous contracts

Adjustment to liabilities for incurred claimsPremium refunds

Insurance service result

Net finance expenses from insurance contracts

Effect of movement in exchange rates

Total changes in the statement of profit or loss and OCI

Cash flows

Premiums received

Claims and other insurance service expenses paid Insurance acquisition cash flows Total cash flows

Transfer to other items in the statement of financial position Contracts derecognised on disposal of subsidiary Net closing balance

Net opening assets/(liabilities)

Net opening balance

Changes in the statement of profit or loss and OCI Insurance revenue

Insurance service expense Incurred claims and other insurance service expenses Amortisation of insurance acquisition cash flows Losses and reversals of losses on onerous contracts

Adjustment to liabilities for incurred claimsPremium refunds

Insurance service result

Net finance expenses from insurance contracts

Effect of movement in exchange rates

Total changes in the statement of profit or loss and OCI

Cash flows Premiums received

Claims and other insurance service expenses paid Insurance acquisition cash flows Total cash flows

Transfer to other items in the statement of financial position Contracts derecognised on disposal of subsidiary Net closing balance

- -- -

-

• - (62 188 429)

(36 401 024)

• - 120 083 337

• - 120 083 337

• - (62 188 429)

  -

  -

  (7 052 081)

• - (36 401 024)

  - 1 870 564 1 870 564

  -

  - (8 098 974)

  (43 453 105)

• - (7 052 081)

(1 691 496)

(7 919 906)

(70 287 403)

-(110 444 705)

(1 691 496)

(113 561 440)

-

-

76 630 232

Insurance service expense Incurred claims and other insurance service expenses Amortisation of insurance acquisition cash flows Losses and reversals of losses on onerous contracts

Adjustment to liabilities for incurred claimsPremium refunds

Insurance service result

-

-

1 870 564

(70 287 403)

(21 159 759)

(1 691 496)

6 521 897

-Net finance expenses from insurance contracts

Effect of movement in exchange rates

Total changes in the statement of profit or loss and OCI

- -- -

55 470 473

-

-

• - (21 159 759)

1 870 564

(70 287 403)

-

-

- 36 401 025 (74 043 680)

• - 48 228 790

  -

  -

• - 48 228 790

-

(1 691 496)

(14 637 862)

• - (110 444 705)

• - 48 228 790

• - 36 401 025

• - (25 814 890)

- 3 914 484

-

(22 942 371)

Cash flows

Premiums received

Claims and other insurance service expenses paid Insurance acquisition cash flows Total cash flows

Transfer to other items in the statement of financial position Contracts derecognised on disposal of subsidiary Net closing balance

Unaudited Historical Cost

- (2 046 209)

-

(32 296 968)

(1 518 634)Net opening assets/(liabilities)

(53 371 064)

425 340 425 340

(1 168 848)

(1 518 634)

Net opening balance

15 072 15 072

(2 247 070)

(1 168 848)

69 100 954 69 100 954

(2 247 070)

- -- -

-

• - (38 312 575)

(19 764 804)

• - 69 100 954

• - 69 100 954

• - (38 312 575)

  -

  -(7 052 080)

• - (19 764 804)

  -

  -- (8 923 116)

  • 3 489 143

    (26 816 884)

• - (7 052 080)

• (2 636 450)

  (8 070 423)

  • 3 489 143

    (47 235 691)

    -

    Changes in the statement of profit or loss and OCI Insurance revenue

    Insurance service expense Incurred claims and other insurance service expenses Amortisation of insurance acquisition cash flows Losses and reversals of losses on onerous contracts

    Adjustment to liabilities for incurred claimsPremium refunds

    Insurance service result

• (2 636 450)

  (73 199 882)

  • -

    -

    42 284 070

• -

  -

  • 3 489 143

  (47 235 691)

  - 11 071 149

  Net finance expenses from insurance contracts

  Effect of movement in exchange rates

• (2 636 450)

(4 098 928)

-- (1 856 125)

53 355 219

Total changes in the statement of profit or loss and OCI

-- 9 215 024

3 489 143

(49 091 816)

(105 125 329)

(2 636 450)

5 116 096

-

-

- 17 772 775 (87 352 554)

• - 31 112 464

  -

  -

• - 31 112 464