FBC : 2022 HY Results & Audit Review

Reviewed Condensed

Consolidated Financial Results

FOR THE SIX MONTHS ENDED 30 JUNE 2022

CHAIRMAN'S STATEMENT

Financial Highlights For the Half Year Ended 30 June 2022

NAV

EARNINGS

PER

SHARE

Total Income

Profit Before Tax

Profit After Tax

Cost to Income

Basic Earnings Per

Net Asset Value

Share cents

in ZWL

Inflation Adjusted

ZWL43.19 billion

ZWL12.22 billion

ZWL8.10 billion

53%

1 270.73

62.09

Historical

ZWL42.80 billion

ZWL25.73 billion

ZWL21.79 billion

40%

3 417.39

60.64

I am pleased to present to you the Group's reviewed interim financial statements for the six months ended 30 June 2022.

Inflation Adjusted Financial Performance Review

FBC Holdings Limited achieved a profit before tax of ZWL12.2 billion and an after tax profit of ZWL8.1 billion which is a testimony to the Group's adaptation, resilience and tenacity in a volatile operating environment.

FBC Holding's profitability was achieved on the back of a 212% improvement in total income to ZWL43.2 billion, 68% of this amount was in favour of the Group's hedging and investment strategies and 32% was derived from core business revenue lines.

Net interest and related income improved by 89% to ZWL7.3 billion, leveraging on the Group's higher foreign currency lending portfolio proportion. Loans and advances totalling ZWL68.8 billion improved by 34%, compared to the audited position as at 31 December 2021.

Net fee and commission income registered a growth of 44% to ZWL4.7 billion, largely emanating from the Group's digital thrust which has positively impacted our payments and processing systems. Plans are underway to deploy a sizeable number of Point Of Sale (POS) machines in the market, to increase customer acquisition, convenience and transaction volumes for the Group.

The Group's net earned insurance premium of ZWL1.9 billion increased by a marginal 5% compared with the prior year, reflecting subdued consumer capacity in the face of declining disposable incomes. The use of multi-currencies in the economy has provided an opportunity for the Group's insurance subsidiaries to increase underwriting in foreign currency.

Other income, which mainly comprises exchange rate gains on the Group's net foreign currency holding position, gains on the stock market portfolios held by the non-banking businesses and fair value gains on investment properties, amounted to ZWL29.3 billion for the period under review, which is an increase of 520% compared with the prior period.

The Group's overall cost income ratio, excluding monetary loss, improved to 53% from 61% recorded for the same period last year, benefiting from a higher increase in total income of 212% compared to 172% for expenses. Administration expenses increased by 191% to ZWL20.1 billion, mainly due to forward pricing premiums in a hyperinflationary environment. Impairment allowance increased by 201% to ZWL1.5 billion in line with the expected difficulties in the operating environment. Monetary loss increased by 311% mainly due to the growth in net monetary position of the Group.

The Group's total assets as at 30 June 2022 was at ZWL186.2 billion, representing a 34% increase on the 31 December 2021 inflation adjusted figure of ZWL138.6 billion. Balance sheet growth was largely driven by a 22% increase in deposits from ZWL81 billion to ZWL98.7 billion. The Group's statement of financial position includes a significant portion of foreign denominated assets and liabilities, which is underpinning our balance sheet strength. Total equity attributable to the shareholders of the company improved by 26% from ZWL31.4 billion to ZWL39.6 billion driven by an increase in retained profits and other non- distributable reserves.

Operating Environment

Notwithstanding the exchange rate and inflation-induced weaknesses, positive economic milestones have been noted in the domestic economy, such as increased foreign currency receipts, restraint on reserve money growth and a sustained current account surplus and high infrastructure investments. Resultantly, economic growth prospects have remained positive at a projected 4.6%, albeit a decrease from the initial projection of 5.5%. The economic growth is anchored on increased activity in the mining sector (9.5%), construction sector (10.5%), accommodation and food services sector (50%).

The hyperinflationary environment, exchange rate devaluation and the impact of geo-political developments in Eastern Europe continue to weigh down the growth potential of the local economy, as both fiscal and monetary policy authorities face the mammoth task of continuously addressing macro-economic adversities on the back of an unfolding global recession. The Group is however optimistic that recent policy pronouncements by the Government, together with the requisite industry support, will manage to stabilise the inflation and exchange rate environment and sustain positive economic growth.

Inflation

Official year-on-year inflation surged from 60.7% in January 2022 to 191% in June 2022 before increasing to 256.9% in July 2022. Adverse inflationary pressures brought about by forward pricing, have accelerated the depreciation of the local currency, compounded by the impact of external geo-political factors. The hyperinflationary environment has reduced consumers' purchasing power, precipitating the re-dollarization of the economy and weighing down on domestic demand. The Government continues to implement measures aimed at addressing speculative behaviour and exchange rate manipulation.

Exchange Rates

The period under review was characterised by significant exchange rate volatilities. The interbank exchange rate deteriorated by 237% during the period under review. The instability in exchange rates fuelled a rise in inflation, thereby triggering drastic measures by monetary authorities which included the temporary suspension of lending and an increase in the bank policy rate in line with inflation. There is optimism that the measures implemented by the authorities will result in the stabilization of inflation and the exchange rate.

Banking Sector Developments

The Reserve Bank of Zimbabwe has maintained a tight monetary stance in an effort to control inflation and stabilise the exchange rate. A number of measures and frameworks were introduced to instil economic confidence, foster market discipline and strengthen local currency demand. Key pronouncements made during the period under review included the temporary suspension of lending, entrenchment of the multicurrency system through the willing buyer willing seller rate, introduction of gold coins as a store of value and an increase in the bank policy interest rate from 80% to 200%. The bank policy rate was subsequently mandated to be the minimum lending rate with effect from 1 July 2022. Resultantly, interest rates across the banking sector have increased with interest rates of 100% p.a. and 200% p.a. being adopted as minimum lending rates to individuals and corporates respectively.

Insurance Sector Developments

In spite of the volatile economic environment, the Zimbabwe Insurance sector continues to be a sound risk mitigation system. The insurance market has significantly progressed with regards to regulatory capacity as informed by the regulatory initiatives introduced by Insurance and Pensions Commission (IPEC) in 2021.

The use of multi-currencies in the economy has provided an opportunity for the sector to increase insurance underwriting in foreign currency to the public. The Group's insurance subsidiaries continue to explore opportunities in the environment to increase business underwriting.

FBC Reinsurance Limited was finally granted a short-term reinsurer licence in Botswana with operations having commenced on 1 July 2022. This development is in line with our regional expansion strategy.

Property Market Developments

The real estate sector remains suppressed as evidenced by low volume of transactions, increasing voids in offices occupancy levels in the central business district and limited availability of long term mortgage finance. Demand however remains high for residential properties which are also viewed as value-preserving assets in the face of hyperinflation. To this end, the Group continues to actively participate in the residential housing market through construction of new housing stock, thereby contributing to the National Development Strategy (NDS) 1 goals.

FBC Building Society's has completed construction of 257 residential housing units at Kuwadzana Fontaine Ridge with a further 600 housing units targeted on a phased approach. The Society is also progressing well with a housing development at Zvishavane Eastlea Project where construction of 98 cluster housing units is underway with the project scheduled for completion by 31 December 2022.

Stock Market Performance

Negative real returns characterised the stock market in the first half of the year due to contractionary policy interventions that dampened market momentum. The all share index gained 83% for the six months compared with cumulative month on month inflation of 111% from January to June 2022.

Share Price Performance

The FBC Holdings Limited share price gained 121.54% to close the period under review at ZWL75.00. A total of 23 154 900 million shares were traded at a volume weighted average price of ZWL46.05.

FBC Holdings Limited repurchased ZWL133.5 million worth of shares under the share buyback scheme translating into a cumulative holding of 4.90% of the Group's issued shares. It is the Group's endeavour to create sustainable value for its shareholders.

Information Technology, Digital Transformation and Innovation Focus

As the global economy continues to accelerate towards digitally connected eco-systems, FBC Holdings Limited recognises the role that technology plays in delivering a unique customer experience in the current environment. As such, the Group has continued to invest in strengthening its digital capabilities and information security portfolios. In the first half of the year, FBCH focused on enhancing customer experience through the introduction of digitally inclined products and services. This thrust has seen the enhancement of electronic channels, with digital on-boarding being extended to our MasterCard products. The internet-banking platform remains a key service delivery channel and has been undergoing changes to adapt its functionality to the evolving needs of our valued customers.

The Group has made strides in revitalising systems and infrastructure configurations in order to guarantee seamless service delivery to customers - This resonates with the Group's mantra "You Matter Most." FBC Holdings has embraced the Cyber and Data Protection Act of 2022 and is making progress towards ensuring implementation and compliance.

Environment, Social and Governance (ESG) Priorities

ESG priorities have remained core to the growth of sustainable financial markets, signalling a total paradigm shift in terms of capital allocation. FBC Holding's primary objective is to build a brand that is more aware of and responsible in the use of resources, impact on the environment and remains conscious and deliberate in its role to drive sustainable solutions in the communities it serves. The Group's sustainability strategy seeks to identify, manage and mitigate the impacts and risks of FBCH's actions in the environment with a view towards contributing to the reduction of it's carbon footprint.

As the Group integrates sustainability into the corporate mainstream, we continue to take direction from the National Development Strategy 1 (2021-2025), Global Reporting Initiative (GRI) standards, revised Nationally Determined Contributions (NDCs) and other government policy pronouncements. We have also collaborated with development-oriented institutions in Zimbabwe and Southern Africa as we seek to align our strategy and operations to international best practices in the sustainability space.

Community Impact

As FBC Holdings, we have ingrained Corporate Social Responsibility (CSR) as an integral facet of our sustainability strategy. The Group is proud of having fulfilled its social obligation in the field of health, sports, arts and tourism. In this regard, FBC Holdings invested more than ZWL$95 million in community-driven corporate social responsibility initiatives in the first half of the year. The Group also sponsored the prestigious 2022 Zimbabwe Open Golf Tournament, as the title sponsor.

Accolades

Reflecting on brand strength and diversity, the Group's banking subsidiaries received two accolades in the first half of the year. 1.The Marketers Association of Zimbabwe (MAZ) recognised FBC Bank as one of the leading local brands reflecting on the institution's proficiency in extending tangible benefits which customers consciously or subconsciously recognize.

2.The Zimbabwe CEO's Network awarded FBC Building Society, the Business Leadership Commendation accolade in recognition of the institution's support towards urban housing development in the country.

FBC Holdings appreciates the accolades associated with the FBC Brand and will endeavour to remain relevant and responsive to the changing socio-economic and market dynamics in the country.

Regulatory Developments and compliance

The macro-economic environment has necessitated the promulgation of numerous regulatory measures, thereby increasing the Group's compliance burden over the review period. The regulatory authorities put in place a number of measures to stabilise the exchange rate and curb inflation. The Group Legal and Compliance division has robust systems in place to monitor compliance with all the regulatory pronouncements. The Group is committed to complying with all applicable laws, regulations, standards and international best practices and will continue to direct the necessary human, financial and technological resources to maintain the highest possible level of compliance.

The removal of Zimbabwe from the Financial Action Task Force (FATF) grey list at the end of March 2022 was a welcome development which is expected to benefit the economy through the opening up of avenues for foreign direct investments, enabling international trade and acquiring correspondent banking relationships.

Capitalisation

As at 30 June 2022, all of FBC Holdings Limited subsidiaries were in compliance with their regulated capital thresholds. The Group's strategy to invest in inflation-hedging assets has contributed immensely to sustainable capital growth for the subsidiaries, thereby withstanding the negative effects of the deteriorating exchange rate on the capital positions of the banking subsidiaries which are pegged in USD equivalents.

Dividend

On behalf of the Board of FBC Holdings Limited, I am pleased to advise shareholders that an interim dividend of 148.82 ZWL cents per share was proposed for the half year ended 30 June 2022 after taking into account the performance of the Group and the need to continue strengthening the Group's capital position. The interim dividend proposed, totalling ZWL1 billion translates to approximately 21.8 times cover.

Outlook

The domestic economic situation will continue to be impacted by geo-political developments in the global economy. Positive developments within the domestic macro-environment however, signal prospects of sustainable economic growth and stability. In line with regulatory statutes, FBC Holdings Limited will continue to seek opportunities to preserve and grow shareholder value as well as enhance customer experience.

Appreciation

My sincere gratitude goes out to all our stakeholders, especially our valued customers, for their unwavering commitment and support to the FBC Brand despite a challenging operating environment. Your unwavering loyalty has contributed immensely to the continued success of all the subsidiaries of FBCH. As espoused in our vision, the Group will continue to nurture sustainable solutions that enable the financial wellbeing of the communities we serve.

"You Matter Most"

Herbert Nkala

Group Chairman

31 August 2022

1	Directors: Herbert Nkala (Chairman), Chipo Mtasa (Deputy Chairperson), John Mushayavanhu (Group Chief Executive)*, Kleto Chiketsani*, Aenesa Chuma, Gary S Collins, Franklin H Kennedy,
	Trynos Kufazvinei (Group Finance Director)*, David Makwara, Canada Malunga, Rute Moyo, Charles Msipa, Sifiso Ndhlovu, Vimbai Nyemba, Webster Rusere* (*Executive)

Reviewed Condensed Consolidated Financial Results

FOR THE SIX MONTHS ENDED 30 JUNE 2022

AUDITORS' REVIEW CONCLUSION

The Inflation Adjusted Condensed Consolidated Interim Financial Results for the six months ended 30 June 2022 have been reviewed by KPMG and an unmodified review conclusion issued thereon.

The review conclusion has been made available to management and those charged with governance of FBC Holdings Limited. The engagement partner responsible for this review is Themba Mudidi. The auditors' review conclusion on the Inflation Adjusted Condensed Consolidated Interim Financial Results is available for inspection at the Company's registered office.

31 August 2022

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the six months ended 30 June 2022

			Inflation Adjusted	Historical cost*
			Reviewed			Reviewed		Unreviewed		Unreviewed
		Note	30 June 2022			30 June 2021	30 June 2022		30 June 2021
		ZWL			ZWL	ZWL		ZWL
Interest income calculated using
the effective interest method	17	9 430 862 081	5 784 652 391			6 230 595 712	1 872 881 830
Interest and related expense	18	(2 095 256 761)			(1 906 497 286)			(1 379 181 691)		(619 935 604)
Net interest and related income		7 335 605 320	3 878 155 105			4 851 414 021	1 252 946 226
Fee and commission income	19	4 673 881 511			3 287 450 866			3 131 743 756		980 261 061
Fee and commission expense		(47 066 868)			(30 041 408)			(31 948 393)		(9 675 486)
Net fee and commission income		4 626 814 643			3 257 409 458			3 099 795 363		970 585 575
Revenue from property sales	20.1	-	570 653 057			-	179 432 314
Cost of property sales	20.2	-			(422 054 213)			-		(85 518 478)
Net income from property sales		-			148 598 844			-		93 913 836
Insurance premium revenue	21	2 427 295 183	2 887 191 849			1 419 076 219	858 818 181
Premium ceded to reinsurers and retrocessionaires		(491 250 703)			(1 035 298 946)			(319 615 130)		(334 334 857)
Net earned insurance premium		1 936 044 480	1 851 892 903			1 099 461 089	524 483 324
Revenue
	13 898 464 443		9 136 056 310			9 050 670 473	2 841 928 961
Net foreign currency trading and dealing income		17 051 195 814	2 681 971 204			16 357 894 124	900 000 293
Net gains from financial assets at fair value through profit or loss	6 348 732 801	2 042 968 607			6 761 136 684	810 518 665
Other operating income	22	5 893 363 707			1 116 944			10 625 613 447		272 015 822
Other income		29 293 292 322			4 726 056 755			33 744 644 255		1 982 534 780
Total income		43 191 756 765			13 862 113 065			42 795 314 728		4 824 463 741
Impairment allowance		(1 516 355 657)	(504 476 228)			(1 516 355 657)	(173 025 021)
Insurance commission expense	23	(354 391 036)	(356 655 454)			(202 734 719)	(95 568 080)
Insurance commission recovered from reinsurers	23	103 763 079	155 729 208			68 538 910	49 592 187
Insurance claims and loss adjustment expenses	24	(1 427 416 468)	(1 148 275 186)			(884 153 676)	(372 808 724)
Insurance claims and loss adjustment
expenses recovered from reinsurers	24	208 871 104	267 684 655			202 797 900	88 216 622
Administrative expenses	25	(20 121 849 126)	(6 917 777 495)			(14 732 256 502)	(2 190 138 187)
Monetary loss		(7 861 389 822)	(1 978 587 052)			-	-
Profit before income tax		12 222 988 839	3 379 755 513			25 731 150 984	2 130 732 538
Income tax expense	26	(4 120 825 990)			(1 836 986 555)			(3 941 139 671)		(645 735 317)
Profit for the period		8 102 162 849	1 542 768 958			21 790 011 313	1 484 997 221
Other comprehensive income
Items that will not be reclassified to profit or loss**
(Loss)/gain on equity instruments at fair value
through other comprehensive income		(1 141 133)	261 482 836			16 189 993	89 683 261
Tax		(307 641)			(2 614 829)			(307 641)		(896 833)
			(1 448 774)			258 868 007			15 882 352		88 786 428
Gain/(loss) on property revaluation		1 965 978 457	(385 815 882)			4 279 499 650	108 901 632
Tax		(242 478 784)			67 553 766			(615 670 766)		(12 041 964)
			1 723 499 673			(318 262 116)		3 663 828 884		96 859 668
Total comprehensive income for the period		9 824 213 748	1 483 374 849			25 469 722 549	1 670 643 317
Profit attributable to:
Equity holders of the parent		8 097 949 876	1 544 895 099			21 777 859 494	1 485 458 370
Non-controlling interests		4 212 973			(2 126 141)			12 151 819		(461 149)
Total		8 102 162 849	1 542 768 958			21 790 011 313	1 484 997 221
Total comprehensive income attributable to:
Equity holders of the parent		9 808 059 888	1 488 623 734			25 432 035 990	1 670 689 958
Non-controlling interests		16 153 860			(5 248 885)			37 686 559		(46 641)
Total		9 824 213 748	1 483 374 849			25 469 722 549	1 670 643 317
Earnings per share (ZWL cents)
Basic earnings per share	29.1	1 270.73	244.54			3 417.39	235.13
Diluted earnings per share	29.2	1 270.73	244.54			3 417.39	235.13
Headline earnings per share	29.3	1 271.38	244.59			3 417.65	235.11

**Previously gains or loss on equity instruments at fair value through other comprehensive income were classified as items that may be subsequently reclassified to profit or loss. These have now been correctly classified as items that will not be reclassified to profit or loss.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2022

				Inflation Adjusted		Historical cost*
				Reviewed		Audited		Unreviewed		Unaudited
		Note		30 June 2022		31 Dec 2021		30 June 2022		31 Dec 2021
ASSETS			ZWL		ZWL		ZWL		ZWL
Balances with banks and cash	4		56 233 300 437	38 616 129 404		56 233 300 437	17 639 586 908
Financial assets at amortised cost	5.3		2 572 639 173	4 312 069 387		2 572 639 173	1 969 724 151
Loans and advances to customers	5.1		68 813 073 220	51 518 724 408		68 812 649 548	23 533 213 273
Trade and other receivables including insurance receivables	5.2		1 521 049 196	1 386 289 867		1 521 049 196	618 741 001
Bonds and debentures	6		3 857	15 192 469		3 857	6 939 817
Financial assets at fair value through profit or loss	7		10 406 081 154	7 971 209 063		10 638 061 858	3 724 819 859
Financial assets at fair value through other comprehensive income		171 423 380	341 512 155		171 423 380	156 000 444
Inventory	8		841 341 418	676 025 780		330 467 943	102 710 413
Prepayments and other assets	9		17 339 551 866	14 586 814 552		16 677 935 481	6 546 709 548
Current income tax asset			79 583 370	51 350 639		51 689 355	23 456 625
Deferred tax asset			1 032 315 320	418 662 134		680 725 098	149 384 316
Investment property	12		16 010 981 520	9 142 816 645		16 010 981 520	4 176 376 848
Intangible assets	10		230 074 618	284 367 559		14 319 470	16 479 083
Property and equipment	11		10 653 156 954	8 870 694 550		8 418 542 223	4 052 073 314
Right of use asset			356 764 238		377 268 402		83 558 374		75 026 793
Total assets			186 261 339 721	138 569 127 014		182 217 346 913	62 791 242 393
EQUITY AND LIABILITIES
Liabilities
Deposits from customers	13		58 732 060 081	56 828 042 620		58 732 060 081	25 958 665 772
Deposits from other banks	13		13 687 694 696	5 659 904 757		13 687 694 696	2 585 406 238
Borrowings	13		26 264 066 424	18 524 764 125		26 264 066 424	8 461 987 045
Insurance liabilities	14		1 975 641 343	1 707 647 963		1 424 451 832	681 083 275
Trade and other payables	15		40 939 527 055	21 933 981 229		38 630 690 940	9 635 885 014
Current income tax liabilities			563 933 207	846 648 699		563 933 208	386 743 397
Deferred tax liabilities			4 346 390 100	1 422 126 143		4 089 781 113	668 583 798
Lease liability			125 288 958		180 923 831		125 288 958		82 644 775
Total liabilities			146 634 601 864	107 104 039 367		143 517 967 252	48 460 999 314
Equity
Capital and reserves attributable to equity
holders of the parent entity
Share capital and share premium	16		1 915 196 715	1 915 196 715		14 089 892	14 089 892
Other reserves			12 802 161 595	11 225 560 928		8 036 394 315	4 515 727 159
Retained profits			24 849 339 904	18 280 444 221		30 591 500 457	9 780 717 590
				39 566 698 214		31 421 201 864		38 641 984 664		14 310 534 641
Non controlling interest in equity			60 039 643		43 885 783		57 394 997		19 708 438
Total equity			39 626 737 857		31 465 087 647		38 699 379 661		14 330 243 079
Total equity and liabilities			186 261 339 721	138 569 127 014		182 217 346 913	62 791 242 393

CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 30 June 2022

				Inflation Adjusted		Historical cost*
				Reviewed			Reviewed			Unreviewed			Unreviewed
		Note		30 June 2022			30 June 2021		30 June 2022			30 June 2021
Cash flow from operating activities			ZWL			ZWL		ZWL			ZWL
Profit before income tax			12 222 988 839	3 379 755 513			25 731 150 984	2 130 732 538
Adjustments for:
Depreciation on property and equipment			587 332 568	311 183 602			253 841 491	88 052 456
Amortisation			54 292 941	104 512 060			2 159 612	1 428 809
Credit impairment losses			1 516 355 657	504 476 228			1 516 355 657	173 025 021
Profit from disposal of property and equipment	22		4 107 899	335 502			1 664 643	(89 721)
Net unrealised exchange gains and losses			(21 517 750 449)	5 669 878 056			(32 457 287 342)	(247 836 730)
Fair value adjustment on investment property	22		(5 640 160 154)	307 395 653			(10 339 275 379)	(177 738 789)
Fair value adjustment on financial assets
at fair value through profit or loss			(6 348 732 801)	(2 042 968 607)			(6 761 136 684)	(810 518 665)
Net interest income			(7 335 605 320)	(3 878 155 105)			(4 851 414 021)	(1 252 946 226)
Depreciation on right of use assets			20 504 164	118 845 115			(8 531 581)	3 854 443
Net Cash (used)/generated before changes in
		(26 436 666 656)	4 475 258 017			(26 912 472 620)	(92 036 864)
operating assets and liabilities
Decrease/(increase) in financial assets at amortised cost			1 739 430 214	836 224 452			(602 915 022)	62 245 205
Decrease/(increase) in loans and advances			28 125 604 962	(4 885 734 604)			140 517 499	(4 436 123 376)
Increase in trade and other receivables			(77 828 108)	(570 187 857)			(845 376 975)	(336 995 367)
Decrease in bonds and debentures			15 188 612	1 493 457 217			6 935 960	414 229 442
Decrease/(increase) in financial assets
at fair value through profit or loss			3 913 860 710	(75 166 229)			(152 105 315)	(91 676 197)
Increase in inventory			(598 819 644)	(259 794 348)			(600 441 866)	(135 272 572)
Decrease/(increase) in prepayments and other assets			10 061 607 446	(4 059 566 093)			2 613 372 245	(1 920 165 881)
(Decrease)/increase in deposits from other banks and customers		(24 162 467 907)	7 412 895 965			9 781 407 460	4 904 934 240
Increase in insurance liabilities			267 993 380	422 607 701			743 368 557	303 194 251
Increase in trade and other payables			3 098 594 631	362 722 291			12 759 710 489	1 299 107 604
Decrease/(increase) in lease liabilities			(55 634 873)	(23 339 291)			42 644 183	(1 008 551)
				(4 109 137 233)			5 129 377 221			(3 025 355 405)			(29 568 066)
Interest received			9 430 862 081	5 784 652 391			6 230 595 712	1 872 881 830
Income tax expense paid			(2 363 949 869)	(1 112 403 579)			(1 518 304 462)	(283 074 910)
Interest paid			(2 095 256 761)			(1 906 497 286)			(1 379 181 691)			(619 935 604)
Net cash generated from operating activities			862 518 218	7 895 128 747			307 754 154	940 303 250
Cash flows from investing activities
Purchase of investment property*			-	(745 056 050)			-	(323 919 264)
Purchase of financial assets at fair value
through other comprehensive income			161 005 465	-			767 057	-
Purchase of property and equipment			(409 551 226)	(153 879 529)			(282 464 704)	(51 179 386)
Purchase of intangible assets			-	(399 607)			-	(137 057)
Proceeds from sale of property and equipment			1 626 799			3 091 666			9 735 880			1 595 669
Net cash used from investing activities			(246 918 962)			(896 243 520)			(271 961 767)			(373 640 038)
Net cash flows before financing activities			615 599 256	6 998 885 227			35 792 387	566 663 212
Cash flows from financing activities
Repayment of borrowings			(39 390 008)	(5 613 417 101)			(21 560 708)	(52 254 679)
Dividend paid to company's shareholders			(1 529 054 196)	(832 840 411)			(967 076 627)	(285 647 215)
Sale of treasury shares			-	3 060 286 972			-	1 010 394 470
Purchase of treasury shares			(133 509 342)	(1 464 060 499)			(133 509 342)	(502 142 786)
Net cash (used)/generated in financing activities			(1 701 953 546)			(4 850 031 039)			(1 122 146 677)			170 349 790
Net (decrease)/increase in cash and cash equivalents			(1 086 354 290)	2 148 854 188			(1 086 354 290)	737 013 002
Exchange gains and losses on cash and cash equivalents			18 703 525 323	(5 171 347 600)			39 680 067 819	410 880 296
Cash and cash equivalents at beginning of the period			38 616 129 404			37 156 505 588			17 639 586 908			10 559 374 255
Cash and cash equivalents at the end of period	4.1		56 233 300 437			34 134 012 176			56 233 300 437			11 707 267 553

*Previously this was disclosed under working capital changes and has been correctly moved to investing activities.

*The historic amounts are shown as supplementary information. This information does not comply with the International Financial Reporting 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 a review conclusion on this historic financial information.

2	Directors: Herbert Nkala (Chairman), Chipo Mtasa (Deputy Chairperson), John Mushayavanhu (Group Chief Executive)*, Kleto Chiketsani*, Aenesa Chuma, Gary S Collins, Franklin H Kennedy,
	Trynos Kufazvinei (Group Finance Director)*, David Makwara, Canada Malunga, Rute Moyo, Charles Msipa, Sifiso Ndhlovu, Vimbai Nyemba, Webster Rusere* (*Executive)

Reviewed Condensed

Consolidated Financial Results

FOR THE SIX MONTHS ENDED 30 JUNE 2022

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2022

Inflation Adjusted	Share			Share	Retained			Treasury	Non			Revaluation	Financial assets		Changes in						Non			Total
						distributable					at fair value				Total			controlling
		capital			premium	profits			shares	reserve			reserve			reserve		ownership					Interest			equity
Half year ended 30 June 2022	ZWL			ZWL	ZWL			ZWL	ZWL			ZWL			ZWL		ZWL			ZWL			ZWL			ZWL
913 299	1 914 283 416		18 280 444 224	(2 294 094 788)		8 938 734 725	3 854 358 536			499 473 153	227 089 299			31 421 201 864	43 885 783			31 465 087 647
Balance at 1 January 2022
Profit for the period	-	-		8 097 949 876	-		-	-			-	-			8 097 949 876	4 212 973			8 102 162 849
Other comprehensive income
Gain on revaluation of property and equipment, net of tax	-	-		-	-		-	1 711 558 786			-	-			1 711 558 786	11 940 887			1 723 499 673
Loss on financial assets through other comprehensive income	-	-		-	-		-	-			(1 448 774)	-	(1	448 774)	-	(1	448 774)
Total other comprehensive income		-			-		-			-		-			1 711 558 786			(1 448 774)		-			1 710 110 012			11 940 887			1 722 050 899
Total comprehensive income		-			-		8 097 949 876			-		-			1 711 558 786			(1 448 774)		-			9 808 059 888			16 153 860			9 824 213 748
Transaction with owners
Dividend paid	-	-		(1 529 054 196)	-		-	-			-	-			(1 529 054 196)	-			(1 529 054 196)
Treasury share purchase	-	-		-	(133 509 342)		-	-			-	-			(133 509 342)	-			(133 509 342)
Shareholders' equity at 30 June 2022		913 299			1 914 283 416		24 849 339 904			(2 427 604 130)		8 938 734 725			5 565 917 322			498 024 379		227 089 299			39 566 698 214			60 039 643			39 626 737 857
Half year ended 30 June 2021	913 299	1 914 283 416		10 149 854 568	(1 534 217 442)		5 085 482 511	1 786 469 908			246 282 885	227 089 300			17 876 158 445	32 865 947			17 909 024 392
Balance at 1 January 2021
Profit for the period	-	-		1 544 895 099	-		-	-			-	-			1 544 895 099	(2 126 141)			1 542 768 958
Other comprehensive income
Gain on revaluation of property and equipment, net of tax	-	-		-	-		-	(315 139 373)			-	-			(315 139 373)	(3 122 743)			(318 262 116)
Gain on financial assets through other comprehensive income		-			-		-			-		-			-			258 868 007		-			258 868 007			-			258 868 007
Total other comprehensive income		-			-		-			-		-			(315 139 373)			258 868 007		-			(56 271 366)		(3	122 743)		(59 394 109)
Total comprehensive income		-			-		1 544 895 099			-		-			(315 139 373)			258 868 007		-			1 488 623 733			(5 248 884)			1 483 374 849
Transaction with owners
Sale of treasury shares	-	-		-	280 997 300		2 779 289 672	-			-	-			3 060 286 972	-	3 060 286 972
Dividend paid	-	-		(832 840 411)	-		-	-			-	-			(832 840 411)	-	(832 840 411)
Treasury share purchase	-	-		-	(1 464 060 499)		-	-			-	-			(1 464 060 499)	-	(1 464 060 499)
Shareholders' equity at 30 June 2021		913 299			1 914 283 416		10 861 909 256			(2 717 280 641)		7 864 772 183			1 471 330 535			505 150 892		227 089 300			20 128 168 240			27 617 063			20 155 785 303
Historical cost*	Share			Share	Retained			Treasury	Non			Revaluation	Financial assets		Changes in						Non			Total
						distributable					at fair value				Total			controlling
		capital			premium	profits			shares	reserve			reserve			reserve		ownership					Interest	equity
Half year ended 30 June 2022	ZWL			ZWL	ZWL			ZWL	ZWL			ZWL			ZWL		ZWL			ZWL			ZWL			ZWL
6 719	14 083 173		9 780 717 590	(311 545 488)		1 419 826 338	3 253 383 494			152 392 146	1 670 671			14 310 534 643	19 708 438			14 330 243 081
Balance at 1 January 2022
Profit for the period	-	-		21 777 859 494	-		-	-			-	-			21 777 859 494	12 151 819			21 790 011 313
Other comprehensive income
Gain on revaluation of property and equipment, net of tax	-	-		-	-		-	3 638 294 144			-	-			3 638 294 144	25 534 740			3 663 828 884
Gain on financial assets through other comprehensive income	-	-		-	-		-	-			15 882 352	-	15 882 352	-	15 882 352
Total other comprehensive income		-			-		-			-		-			3 638 294 144			15 882 352		-			3 654 176 496			25 534 740			3 679 711 236
Total comprehensive income		-			-		21 777 859 494			-		-			3 638 294 144			15 882 352		-			25 432 035 990			37 686 559			25 469 722 549
Transaction with owners
Dividend paid	-	-		(967 076 627)	-		-	-			-	-	(967 076 627)	-	(967 076 627)
Treasury share purchase	-	-		-	(133 509 342)		-	-			-	-	(133 509 342)	-	(133 509 342)
Shareholders' equity at 30 June 2022		6 719			14 083 173		30 591 500 457			(445 054 830)		1 419 826 338			6 891 677 638			168 274 498		1 670 671			38 641 984 664			57 394 997			38 699 379 661
Half year ended 30 June 2021	6 719	14 083 173		3 402 259 409	(59 994 648)		50 141 638	1 462 097 784			36 736 543	1 670 671	4 907 001 289	9 702 139	4 916 703 428
Balance at 1 January 2021
Profit for the period	-	-		1 485 458 370	-		-	-			-	-	1 485 458 370	(461 149)	1 484 997 221
Other comprehensive income
Gain on revaluation of property and equipment, net of tax	-	-		-	-		-	96 445 160			-	-	96 445 160	414 508	96 859 668
Gain on financial assets through other comprehensive income	-	-		-	-		-	-			88 786 428	-	88 786 428	-	88 786 428
Total other comprehensive income		-			-		-			-		-			96 445 160			88 786 428		-			185 231 588			414 508			185 646 096
Total comprehensive income		-			-		1 485 458 370			-		-			96 445 160			88 786 428		-			1 670 689 958			(46 641)			1 670 643 317
Transaction with owners
Sale of treasury shares	-	-		-	92 774 998		917 619 472	-			-	-	1 010 394 470	-	1 010 394 470
Dividend paid	-	-		(285 647 215)	-		-	-			-	-	(285 647 215)	-	(285 647 215)
Treasury share purchase	-	-		-	(502 142 786)		-	-			-	-	(502 142 786)	-	(502 142 786)
Shareholders' equity at 30 June 2021		6 719			14 083 173		4 602 070 564			(469 362 436)		967 761 110			1 558 542 944			125 522 971		1 670 671			6 800 295 716			9 655 498			6 809 951 214

*The historic amounts are shown as supplementary information. This information does not comply with the International Financial Reporting 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 a review conclusion on this historic financial information.

NOTES TO THE CONSOLIDATED FINANCIAL RESULTS

For the six months ended 30 June 2022

1. GENERAL INFORMATION
   FBC Holdings Limited ("the Company") and its subsidiaries (together "the Group") provide a wide range of commercial banking, mortgage finance, micro lending, short - term reinsurance, short - term insurance and stockbrocking services.
   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 condensed consolidated interim financial statements were approved for issue by the Board of Directors on 30 August 2022.
2. BASIS OF PREPARATION
   The Group's condensed consolidated interim financial statements for the half year ended 30 June 2022 have been prepared in accordance with the International Accounting Standard ("IAS") 34 Interim Financial Reporting, the Companies and Other Business Entities Act (Chapter 24:31), Zimbabwe Stock Exchange Listing requirements and the Zimbabwe Banking Act (Chapter 24:20). They do not include all the information required for a complete set of International Financial Reporting Standards ("IFRS") financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual consolidated financial statements. They should therefore be read in conjunction with the Group's consolidated financial statements for the year ended 31 December 2021.
3. ACCOUNTING POLICIES
   The accounting policies applied in the preparation of these interim consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2021, except for the adoption of new standards and interpretations effective as of 1 January 2022.
   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.

3.2 Presentation currency

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). The consolidated financial statements are presented in Zimbabwean dollar ("ZWL"), which is the Group's presentation currency as at half year ended 30 June 2022 and as prescribed by statutory instrument 33 of 2019 and statutory instrument 142 of 2019. All the Group's subsidiaries operate in Zimbabwe and have the Zimbabwean dollar ("ZWL") as their functional and presentation currency as at half year ended 30 June 2022.

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 interim consolidated 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. Non-monetary assets and liabilities carried in the Group's financial results 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 or loss for the half year ended 30 June 2022 and the comparative period. Comparative amounts in the Group financial results have been restated to reflect the change in the general price index from 1 October 2018 to the end of the reporting period. All items in the statement of cash flows are expressed based on the restated financial information for the 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:

	Period	Indices			Conversion Factors at 30 June 2022
	CPI as at 30 June 2021	2 986.4							2.9156
	CPI as at 31 December 2021	3 977.5							2.1892
	CPI as at 30 June 2022	8 707.4							1
		Inflation Adjusted	Historical cost
4	BALANCES WITH BANKS AND CASH	Reviewed			Audited			Unreviewed		Unaudited
30 June 2022			31 Dec 2021	30 June 2022		31 Dec 2021
	Balances with Reserve Bank of Zimbabwe ("RBZ")	ZWL			ZWL	ZWL		ZWL
	Statutory reserves	1 186 781 369	1 866 509 484			1 186 781 369	852 608 918
	Current account balances	7 575 677 994	2 265 198 821			7 575 677 994	1 034 727 510
		8 762 459 363			4 131 708 305			8 762 459 363		1 887 336 428
	Balances with other banks and cash
	Notes and coins	7 416 238 501	10 445 346 018			7 416 238 501	4 771 363 461
	Other bank balances	40 054 602 573			24 039 075 081			40 054 602 573		10 980 887 019
	Balances with banks and cash (excluding bank overdrafts)	56 233 300 437			38 616 129 404			56 233 300 437		17 639 586 908
	Current	55 110 946 587	38 616 129 404			55 110 946 587	17 639 586 908
	Non-current	1 122 353 850			-			1 122 353 850		-
	Total	56 233 300 437			38 616 129 404			56 233 300 437		17 639 586 908

	Inflation Adjusted				Historical cost
Reviewed	Audited	Reviewed		Unreviewed	Unaudited	Unreviewed
30 June 2022	31 Dec 2021	30 June 2021	30 June 2022	31 Dec 2021	30 June 2021
ZWL	ZWL	ZWL		ZWL	ZWL	ZWL

4.1 For the purpose of the cash flow statement, cash and cash equivalents comprise the following balances : Balances with other banks, cash and current account balances at

RBZ (excluding bank overdrafts)	56 233 300 437	38 616 129 404		34 134 012 176 56 233 300 437		17 639 586 908	11 707 267 553
Total cash and cash equivalents -
statement of cash flows	56 233 300 437	38 616 129 404		34 134 012 176 56 233 300 437		17 639 586 908	11 707 267 553

3	Directors: Herbert Nkala (Chairman), Chipo Mtasa (Deputy Chairperson), John Mushayavanhu (Group Chief Executive)*, Kleto Chiketsani*, Aenesa Chuma, Gary S Collins, Franklin H Kennedy,
	Trynos Kufazvinei (Group Finance Director)*, David Makwara, Canada Malunga, Rute Moyo, Charles Msipa, Sifiso Ndhlovu, Vimbai Nyemba, Webster Rusere* (*Executive)

NOTES TO THE CONSOLIDATED FINANCIAL RESULTS (CONTINUED)

For the six months ended 30 June 2022

		Inflation Adjusted		Historical cost
		Reviewed	Audited		Unreviewed	Unaudited
5	FINANCIAL ASSETS	30 June 2022	31 Dec 2021		30 June 2022	31 Dec 2021
ZWL	ZWL		ZWL	ZWL

5.1 Loans and advances to customers Loans and advances maturities

Maturing within 1 year	37 168 518 583		18 061 905 098		37 302 236 610		8 250 556 169
Maturing after 1 year	33 587 481 685		34 605 503 620		33 453 339 986		15 807 368 333
Gross carrying amount	70 756 000 268		52 667 408 718		70 755 576 596		24 057 924 502
Impairment allowance	(1 942 927 048)		(1 148 684 310)		(1 942 927 048)		(524 711 229)
	68 813 073 220		51 518 724 408		68 812 649 548		23 533 213 273
5.2 Trade and other receivables including
insurance receivables
Trade receivables	59 553		37 208 491		59 553		16 996 587
Insurance receivables
- Due by insurance clients and insurance brokers	1 449 613 691		1 283 727 663		1 449 613 691		586 398 121
- Due by reinsurers and retrocessionaires	160 948 178		288 620 083		160 948 178		117 332 862
Gross carrying amount	1 610 621 422		1 609 556 237		1 610 621 422		720 727 570
Impairment allowance	(89 572 226)		(223 266 370)		(89 572 226)		(101 986 569)
Total	1 521 049 196		1 386 289 867		1 521 049 196		618 741 001
Current	1 521 049 196		1 375 986 634		1 521 049 196		614 034 554
Non-current	-		10 303 233		-		4 706 447
Total	1 521 049 196		1 386 289 867		1 521 049 196		618 741 001

5.3 Financial assets at amortised cost

Maturing within 1 year	2 573 548 325		4 253 664 127		2 573 548 325		1 943 045 023
Maturing after 1 year	20 484 406		82 490 610		20 484 406		37 681 153
Gross carrying amount	2 594 032 731		4 336 154 737		2 594 032 731		1 980 726 176
Impairment allowance	(21 393 558)		(24 085 350)		(21 393 558)		(11 002 025)
	2 572 639 173		4 312 069 387		2 572 639 173		1 969 724 151

5.4 Movement in impairment allowance

	Balance at beginning of period	1 416 268 219		646 879 849		646 941 750		183 834 469
	Effects of IAS 29	(769 326 469)		(244 434 164)		-		-
	Impairment loss allowance	1 516 355 657		1 005 426 129		1 516 355 657		459 271 860
	Reversal of impairment	-		(2 886 748)		-		(1 318 647)
	Amounts (recovered)/written off during the year as uncollectible	(5 415 296)		11 283 153		(5 415 296)		5 154 068
	Balance at end of period	2 157 882 111		1 416 268 219		2 157 882 111		646 941 750
6	BONDS AND DEBENTURES
	Maturing within 1 year	-		-		-		-
	Maturing after 1 year	5 086		15 278 346		5 086		6 979 045
	Gross carrying amount	5 086		15 278 346		5 086		6 979 045
	Impairment allowance	(1 229)		(85 877)		(1 229)		(39 228)
		3 857		15 192 469		3 857		6 939 817
	Current	-		-		-		-
	Non-current	3 857		15 192 469		3 857		6 939 817
	Total	3 857		15 192 469		3 857		6 939 817
7	FINANCIAL ASSETS AT FAIR VALUE
	THROUGH PROFIT OR LOSS
	Listed securities at market value	7 758 542 470		7 137 463 207		7 990 523 174		3 343 970 387
	Unlisted securities (Afreximbank class B shares)	2 647 538 684		833 745 856		2 647 538 684		380 849 472
		10 406 081 154		7 971 209 063		10 638 061 858		3 724 819 859
	Current	10 406 081 154		7 971 209 063		10 638 061 858		3 724 819 859
	Non-current	-		-		-		-
	Total	10 406 081 154		7 971 209 063		10 638 061 858		3 724 819 859
8	INVENTORY
	Raw materials	33 363 178		45 020 861		34 610 659		19 801 554
	Work in progress	807 978 240		631 004 919		295 857 284		82 908 859
		841 341 418		676 025 780		330 467 943		102 710 413
	Current	723 553 619		676 025 780		114 594 117		102 710 413
	Non-current	117 787 799		-		215 873 826		-
	Total	841 341 418		676 025 780		330 467 943		102 710 413
9	PREPAYMENTS AND OTHER ASSETS
	Prepayments	1 227 695 359		1 367 310 726		879 498 493		595 766 209
	Deferred acquisition costs	383 009 098		253 642 433		231 403 197		74 570 505
	Refundable deposits for Mastercard and Visa transactions	1 281 301 869		1 065 539 884		1 281 301 869		486 731 417
	Stationery stock and other consumables	-		10 963 170		-		2 334 661
	Time- share asset	53 227 588		60 831 679		24 314 063		27 787 500
	Zimswitch receivables	348 056 424		643 899 823		348 056 424		294 129 087
	Bill payments receivables	40 976 452		32 236 051		40 976 452		14 725 210
	RBZ NNCD and auction system balances	13 349 340 991		10 593 839 384		13 349 340 991		4 839 194 228
	Capital work in progress	328 892 936		328 892 936		82 538 666		82 538 666
	Other	327 051 149		229 658 466		440 505 326		128 932 065
		17 339 551 866		14 586 814 552		16 677 935 481		6 546 709 548
	Current	15 786 497 465		13 521 274 670		15 396 633 612		6 059 978 131
	Non-current	1 553 054 401		1 065 539 882		1 281 301 869		486 731 417
	Total	17 339 551 866		14 586 814 552		16 677 935 481		6 546 709 548
	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.
10	INTANGIBLE ASSETS
	As at end of period
	Opening net book amount	284 367 559		338 295 934		16 479 083		9 074 177
	Additions	-		27 564 055		-		10 632 127
	Amortisation charge	(54 292 941)		(81 492 430)		(2 159 613)		(3 227 221)
	Closing net book amount	230 074 618		284 367 559		14 319 470		16 479 083
	As at end of period
	Cost	1 359 332 521		1 359 332 521		28 356 776		28 356 776
	Accumulated amortisation	(1 129 257 903)		(1 074 964 962)		(14 008 079)		(11 848 466)
	Accumulated impairment	-		-		(29 227)		(29 227)
	Net book amount	230 074 618		284 367 559		14 319 470		16 479 083

Reviewed Condensed Consolidated Financial Results

FOR THE SIX MONTHS ENDED 30 JUNE 2022

11	PROPERTY AND EQUIPMENT
	Inflation Adjusted											Furniture
		Freehold				Computer	and Office				Motor
		premises	Machinery		equipment	equipment				vehicles		Total
	Half year ended 30 June 2022	ZWL		ZWL					ZWL	ZWL				ZWL		ZWL
	Opening net book
	amount at January 2022	5 253 772 493		336 578 264	912 230 151		1 160 747 359		1 207 366 283		8 870 694 550
	Additions	2 284 973		-	71 371 977		179 550 790		156 343 486		409 551 226
	Revaluation	1 965 978 458		-			-					-		-		1 965 978 458
	Adjustment to cost	-		-			-					-		(15)		(15)
	Disposals	-		-	(1 369 879)		(420 270)		(3 944 548)		(5 734 697)
	Depreciation	(51 836 158)		(14 752 893)	(161 432 471)		(179 152 741)		(180 158 305)		(587 332 568)
	Closing net book
	amount at June 2022	7 170 199 766		321 825 371	820 799 778		1 160 725 138		1 179 606 901		10 653 156 954
	Year ended 31 December 2021
	Opening net book
	amount at January 2021	4 219 360 167		228 816 888	633 075 685		698 535 671		769 581 378		6 549 369 789
	Additions	16 984 093		18 715 704	223 561 101		148 597 608		180 232 912		588 091 418
	Revaluation	1 075 075 132		107 120 101	215 693 912		489 853 570		432 582 633		2 320 325 348
	Adjustment to cost	-		-			(6)					-		-		(6)
	Disposals	(1 208 630)		-	(744 096)					-		(15 297 243)		(17 249 969)
	Depreciation	(56 438 269)		(18 074 429)	(159 356 445)		(176 239 490)		(159 733 397)		(569 842 030)
	Closing net book amount
	at December 2021	5 253 772 493		336 578 264	912 230 151		1 160 747 359		1 207 366 283		8 870 694 550
	Historical cost											Furniture
		Freehold				Computer	and Office				Motor
		premises	Machinery		equipment	equipment				vehicles		Total
	Half year ended 30 June 2022	ZWL		ZWL					ZWL	ZWL				ZWL		ZWL
	Opening net book
	amount at January 2022	2 399 567 875		153 746 676	418 602 582		528 616 736		551 539 445		4 052 073 314
	Additions	1 748 280		4 442 994	50 156 185		106 454 403		119 662 842		282 464 704
	Revaluation	4 349 246 220		-			-					-		-		4 349 246 220
	Adjustment to cost	-		-			-					-		-		-
	Disposals	-		-	(499 180)		(191 977)		(10 709 367)		(11 400 524)
	Depreciation	(21 427 598)		(7 185 617)	(82 378 403)		(38 558 203)		(104 291 670)		(253 841 491)
	Closing net book
	amount at June 2022	6 729 134 777		151 004 053	385 881 184		596 320 959		556 201 250		8 418 542 223
	Year ended 31 December 2021
	Opening net book
	amount at January 2021	1 198 905 234		65 026 652	180 979 508		197 613 243		218 717 308		1 861 241 945
	Additions	5 748 406		6 886 260	80 220 203		54 357 413		68 202 643		215 414 925
	Revaluation	1 217 521 713		92 574 780	218 403 665		303 900 625		330 325 811		2 162 726 594
	Disposals	(343 476)		-	(211 410)					-		(4 347 268)		(4 902 154)
	Depreciation	(22 264 002)		(10 741 016)	(60 789 384)		(27 254 545)		(61 359 049)		(182 407 996)
	Closing net book amount
	at December 2021	2 399 567 875		153 746 676		418 602 582		528 616 736				551 539 445		4 052 073 314
	Freehold premises was revalued at half year ended 30 June 2022
					Inflation Adjusted								Historical cost
					Reviewed					Audited				Unreviewed		Unaudited
					30 June 2022			31 Dec 2021		30 June 2022		31 Dec 2021
12	INVESTMENT PROPERTY						ZWL					ZWL					ZWL		ZWL
	Opening balance				9 088 810 471	3 443 188 871			4 176 376 847			978 507 514
	Additions					-	745 056 050				-			323 919 264
	Fair value adjustment				6 488 667 043	3 175 724 787			11 461 920 337			2 354 373 476
	Transfers from inventory				433 504 006	1 778 846 937				372 684 336			519 576 594
	Closing balance				16 010 981 520			9 142 816 645			16 010 981 520			4 176 376 848
	Non-current				16 010 981 520			9 142 816 645			16 010 981 520			4 176 376 848
	Total				16 010 981 520			9 142 816 645			16 010 981 520			4 176 376 848

Fair valued adjustment of ZWL 6 488 667 043 and ZWL 11 461 920 337 in inflation and historical cost terms was made as at 30 June 2022

The fair value of investment property was determined by external, independent property valuers, having the appropriate recognised professional qualifications and recent experience in the location and category of the property being valued.

		Inflation Adjusted	Historical cost
13	DEPOSITS FROM OTHER BANKS AND CUSTOMERS	Reviewed			Audited			Unreviewed		Unaudited
30 June 2022			31 Dec 2021	30 June 2022		31 Dec 2021
13.1	Deposits from customers	ZWL			ZWL	ZWL		ZWL
	Demand deposits	49 533 333 037	45 823 482 311			49 533 333 037	20 931 857 002
	Promissory notes	6 743 154 020	6 626 681 993			6 743 154 020	3 027 023 545
	Other time deposits	2 455 573 024	4 377 878 316			2 455 573 024	1 999 785 225
		58 732 060 081			56 828 042 620			58 732 060 081		25 958 665 772
13.2	Deposits from other banks
	Money market deposits	13 687 694 696	5 659 904 757			13 687 694 696	2 585 406 238
	Bank borrowings and lines of credit	26 264 066 424			18 524 764 125			26 264 066 424		8 461 987 045
		39 951 761 120			24 184 668 882			39 951 761 120		11 047 393 283
	TOTAL DEPOSITS	98 683 821 201			81 012 711 502			98 683 821 201		37 006 059 055
	Current	69 804 709 027	80 927 821 058			69 804 709 027	36 967 281 674
	Non-current	28 879 112 174			84 890 444			28 879 112 174		38 777 381
	Total	98 683 821 201			81 012 711 502			98 683 821 201		37 006 059 055

4	Directors: Herbert Nkala (Chairman), Chipo Mtasa (Deputy Chairperson), John Mushayavanhu (Group Chief Executive)*, Kleto Chiketsani*, Aenesa Chuma, Gary S Collins, Franklin H Kennedy,
	Trynos Kufazvinei (Group Finance Director)*, David Makwara, Canada Malunga, Rute Moyo, Charles Msipa, Sifiso Ndhlovu, Vimbai Nyemba, Webster Rusere* (*Executive)

NOTES TO THE CONSOLIDATED FINANCIAL RESULTS (CONTINUED)

For the six months ended 30 June 2022

13.3 Deposits concentration	Reviewed					Audited
Inflation Adjusted	30 June 2022	%		31 Dec 2021	%
ZWL		ZWL
Agriculture	6 752 912 455	7%		4 668 238 230	6%
Construction	4 881 907 181	5%		4 942 272 672	6%
Wholesale and retail trade	8 755 339 804	9%		6 737 116 536	8%
Public sector	13 136 720 419	13%		8 059 529 325	10%
Manufacturing	8 528 362 310	9%		6 613 773 343	8%
Telecommunication	3 492 307 420	4%		4 467 911 618	6%
Transport	2 643 727 103	3%		4 337 850 557	5%
Individuals	6 140 169 336	6%		4 331 426 028	5%
Financial services	28 963 121 497	29%		26 660 200 301	35%
Mining	6 350 751 107	6%		8 573 340 818	10%
Other	9 038 502 569			9%		1 621 052 074		1%
	98 683 821 201	100%		81 012 711 502	100%
	Unreviewed					Unaudited
Historical cost	30 June 2022	%		31 Dec 2021	%
ZWL		ZWL
Agriculture	6 752 912 455	7%		2 132 419 671	6%
Construction	4 881 907 181	5%		2 257 596 752	6%
Wholesale and retail trade	8 755 339 804	9%		3 077 469 298	8%
Public sector	13 136 720 419	13%		3 681 538 522	10%
Manufacturing	8 528 362 310	9%		3 021 126 961	8%
Telecommunication	3 492 307 420	4%		2 040 911 829	6%
Transport	2 643 727 103	3%		1 981 500 815	5%
Individuals	6 140 169 336	6%		1 978 566 134	5%
Financial services	28 963 121 497	29%		12 178 199 303	35%
Mining	6 350 751 107	6%		3 916 244 139	10%
Other	9 038 502 569			9%		740 485 631		1%
	98 683 821 201			100%		37 006 059 055		100%

There are material concentration of deposits to the following sectors; Financial services 29%, wholesale and retail trade 9%, mining 6% and other 9%.

		Inflation Adjusted	Historical cost
		Reviewed		Audited		Unreviewed		Unaudited
		30 June 2022		31 Dec 2021	30 June 2022		31 Dec 2021
14	INSURANCE LIABILITIES	ZWL		ZWL	ZWL		ZWL
	Gross outstanding claims	479 563 009	499 954 773		479 563 009	225 517 396
	Liability for unearned premium	1 496 078 334		1 207 693 190		944 888 823		455 565 879
		1 975 641 343		1 707 647 963		1 424 451 832		681 083 275
	Current	1 975 641 343	1 707 647 963		1 424 451 832	681 083 275
	Non-current	-		-		-		-
	Total	1 975 641 343	1 707 647 963		1 424 451 832	681 083 275
15	TRADE AND OTHER PAYABLES
	Trade and other payables	7 856 407 740	8 419 027 539		7 840 101 465	3 549 007 199
	Deferred income	417 868 361	557 479 317		350 736 786	167 991 100
	Mastercard and Visa prepayments	2 960 942 335	1 736 579 388		2 960 942 335	793 257 727
	TT Resdex inwards	24 179 117	144 413 827		24 179 117	65 967 260
	RBZ cash cover	11 163 506 252	6 909 818 684		11 163 506 252	3 156 358 472
	Zimswitch settlement	258 117 970	256 747 566		258 117 970	117 280 553
	Instant banking balances	298 171 789	379 638 682		298 171 789	173 416 384
	Intermediary tax	919 108 351	661 316 398		919 108 351	302 084 861
	Other liabilities	5 654 634 073	1 025 021 995		3 429 235 808	468 223 119
	Customer funds awaiting payment	11 386 591 067		1 843 937 833		11 386 591 067		842 298 339
		40 939 527 055		21 933 981 229		38 630 690 940		9 635 885 014
	Current	36 348 156 648	12 765 101 871		32 146 489 260	5 534 264 579
	Non-current	4 591 370 407		9 168 879 358		6 484 201 680		4 101 620 435
	Total	40 939 527 055	21 933 981 229		38 630 690 940	9 635 885 014
16	SHARE CAPITAL AND SHARE PREMIUM
	Authorised
	Number of ordinary shares, with a nominal value of ZWL0.00001	800 000 000	800 000 000		800 000 000	800 000 000
	Issued and fully paid
	Number of ordinary shares, with a nominal value of ZWL0.00001	671 949 927		671 949 927		671 949 927		671 949 927
	Share capital movement	Number of		Share Capital	Share Premium		Total
	Inflation adjusted	Shares		ZWL	ZWL		ZWL
	As at 1 January 2022	671 949 927	913 299		1 914 283 416	1 915 196 715
	Share issue	-		-		-		-
	As at 30 June 2022	671 949 927	913 299		1 914 283 416	1 915 196 715
	Historical cost
	As at 1 January 2022	671 949 927	6 719		14 083 173	14 089 892
	Share issue	-		-		-		-
	As at 30 June 2022	671 949 927	6 719		14 083 173	14 089 892

The unissued share capital is under the control of the directors subject to the restrictions imposed by the Companies and Other Business Entities Act (Chapter 24:31), Zimbabwe Stock Exchange Listing Requirements and the Articles and Memorandum of Association of the Company.

	Inflation Adjusted	Historical cost
	Reviewed			Reviewed			Unreviewed		Unreviewed
	30 June 2022			30 June 2021	30 June 2022		30 June 2021
17 INTEREST AND RELATED INCOME	ZWL			ZWL	ZWL		ZWL
Cash and cash equivalents	237 644 180	173 844 911			159 783 445	58 037 021
Loans and advances to other banks	1 212 260 570	329 946 653			815 895 065	106 273 508
Loans and advances to customers	7 103 157 515	4 252 614 707			4 688 240 454	1 377 344 535
Bankers acceptances and tradable bills	877 799 816			1 028 246 120			566 676 748		331 226 766
	9 430 862 081	5 784 652 391			6 230 595 712	1 872 881 830
18 INTEREST AND RELATED EXPENSE
Deposit from other banks	796 601 882	292 141 615			524 823 473	94 399 872
Demand deposits	50 384 242	148 632 171			31 995 811	47 481 448
Afreximbank	656 126 041	1 341 723 351			442 654 021	432 163 706
Time deposits	592 144 596			124 000 149			379 708 386		45 890 578
	2 095 256 761	1 906 497 286			1 379 181 691	619 935 604
19 FEE AND COMMISSION INCOME
Retail service fees	4 417 561 550	2 770 106 316			2 961 191 618	892 670 089
Credit related fees	147 098 334	278 281 910			87 316 834	23 501 116
Investment banking fees	3 669 740	51 004 323			2 807 793	1 386 381
Brokerage	105 551 887			188 058 317			80 427 511		62 703 475
	4 673 881 511			3 287 450 866			3 131 743 756		980 261 061

Reviewed Condensed Consolidated Financial Results

FOR THE SIX MONTHS ENDED 30 JUNE 2022

		Inflation Adjusted	Historical cost
		Reviewed			Reviewed			Unreviewed		Unreviewed
		30 June 2022			30 June 2021	30 June 2022		30 June 2021
		ZWL			ZWL	ZWL		ZWL
20.1 REVENUE FROM PROPERTY SALES
	Property Sales	-			570 653 057			-		179 432 314
	Property Sales	-	570 653 057			-	179 432 314
20.2 COST OF PROPERTY SALES
	Property development	-			422 054 213			-		85 518 478
	Property development	-	422 054 213			-	85 518 478
21	INSURANCE PREMIUM REVENUE
	Gross Premium Written	3 000 182 816	2 961 723 214			1 978 560 579	951 746 650
	Change in Unearned Premium Reserve ("UPR")	(572 887 633)			(74 531 365)			(559 484 360)		(92 928 469)
		2 427 295 183	2 887 191 849			1 419 076 219	858 818 181
22	OTHER OPERATING INCOME
	Rental income	52 117 853	37 820 792			36 490 440	12 099 590
	Profit on disposal of property and equipment	(4 107 899)	(335 502)			(1 664 643)	89 721
	Sundry income	204 424 723	268 816 441			251 136 139	81 374 673
	Bad debts recovered	768 876	2 210 866			376 132	713 049
	Fair value adjustment investment property	5 640 160 154			(307 395 653)			10 339 275 379		177 738 789
		5 893 363 707	1 116 944			10 625 613 447	272 015 822
23 NET INSURANCE COMMISSIONS EXPENSE
	Commissions Paid	488 115 824	423 698 054			356 602 951	135 442 537
	Change in technical provisions	(133 724 788)	(67 042 600)			(153 868 232)	(39 874 457)
		354 391 036			356 655 454			202 734 719		95 568 080
	Commissions Received	(103 763 079)			(155 729 208)			(68 538 910)		(49 592 187)
		250 627 957	200 926 246			134 195 809	45 975 893
24	INSURANCE CLAIMS AND LOSS ADJUSTMENT EXPENSES
	Gross claims and loss adjustment expenses	1 116 017 440	730 939 669			732 731 939	235 432 450
	Gross Change in Technical Provisions	311 399 028	417 335 517			151 421 737	137 376 274
		1 427 416 468			1 148 275 186			884 153 676		372 808 724
	Reinsurance claims and loss adjustment expenses	(209 692 412)	(268 737 225)			(191 908 992)	(83 479 972)
	Change in reinsurers' share of Technical Provisions	821 308	1 052 570			(10 888 908)	(4 736 650)
		(208 871 104)			(267 684 655)			(202 797 900)		(88 216 622)
		1 218 545 364	880 590 531			681 355 776	284 592 102
25	ADMINISTRATIVE EXPENDITURE
	Administration expenses	4 257 741 712	2 864 184 853			2 912 340 427	868 665 569
	Staff costs	15 054 609 930	3 390 720 943			11 450 575 494	1 156 796 528
	Directors' fees	66 104 836	93 079 080			42 095 690	30 992 459
	Audit fees:
	- current year fees	47 128 729	24 785 289			31 299 189	7 972 081
	- prior year fees	54 574 572	71 171 088			38 922 812	24 835 871
	- other services	-	52 854 348			-	9 704 553
	Depreciation	587 332 568	311 183 602			253 841 491	88 052 456
	Amortisation	54 292 941	104 512 060			2 159 612	1 428 809
	Operating lease payment	63 838			5 286 232			1 021 787		1 689 861
		20 121 849 126	6 917 777 495			14 732 256 502	2 190 138 187
26	INCOME TAX EXPENSE
	Current income tax on income for the half year	1 666 494 491	3 655 355 131			1 666 494 491	1 253 711 996
	Deferred tax	2 454 331 499			(1 818 368 576)			2 274 645 180		(607 976 679)
		4 120 825 990	1 836 986 555			3 941 139 671	645 735 317
27	CAPITAL COMMITMENTS
	Capital expenditure authorized but not yet contracted for	6 661 913 107	8 606 624 474			6 661 913 107	2 951 896 043
28	CONTINGENT LIABILITIES
	Guarantees and letters of credit	10 730 262 398	938 517 988			10 730 262 398	321 892 461
29	EARNINGS PER SHARE
29.1 Basic earnings per share
	Profit attributable to equity holders of the parent	8 097 949 876			1 544 895 099			21 777 859 494		1 485 458 370
	Total	8 097 949 876	1 544 895 099			21 777 859 494	1 485 458 370
	Basic earnings per share
	Basic earnings per share (ZWL cents)	1 270.73			244.54			3 417.39		235.13
		1 270.73			244.54			3 417.39		235.13
	Weighted average number of ordinary shares	Shares			Treasury	Shares		Weighted
	issued			shares	outstanding
	Half Year ended 30 June 2022
	Issued ordinary shares as at 1 January 2022	671 949 927	(34 530 484)			637 419 443	637 419 443
	Treasury shares purchased	-	(1 868 136)			(1 868 136)	(153 967)
	Treasury shares sold	-	-			-	-
	Weighted average number of ordinary	671 949 927			(36 398 620)			635 551 307		637 265 476
	shares as at 30 June
	Weighted average number of ordinary shares
	Half Year ended 30 June 2021
	Issued ordinary shares as at 1 January 2021	671 949 927	(44 562 161)			627 387 766	627 387 766
	Treasury shares purchased	-	(47 949 688)			(47 949 688)	(5 269 196)
	Treasury shares sold	-	43 900 000			43 900 000	9 648 352
	Weighted average number of ordinary	671 949 927			(48 611 849)			623 338 078		631 766 922
	shares as at 30 June

29.2 Diluted earnings per share

Diluted earnings per share is calculated after adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Company does not have dilutive ordinary shares.

	Inflation Adjusted	Historical cost
	Reviewed			Reviewed		Unreviewed		Unreviewed
	30 June 2022			30 June 2021	30 June 2022		30 June 2021
	ZWL			ZWL	ZWL		ZWL
Profit attributable to equity holders of the parent	8 097 949 876			1 544 895 099			21 777 859 494		1 485 458 370
Total	8 097 949 876			1 544 895 099			21 777 859 494		1 485 458 370
Weighted average number of ordinary shares at 30 June	637 265 476	631 766 922			637 265 476	631 766 922
Diluted earnings per share (ZWL cents)
Diluted earnings per share (ZWL cents)	1 270.73			244.54			3 417.39		235.13
	1 270.73			244.54			3 417.39		235.13

5	Directors: Herbert Nkala (Chairman), Chipo Mtasa (Deputy Chairperson), John Mushayavanhu (Group Chief Executive)*, Kleto Chiketsani*, Aenesa Chuma, Gary S Collins, Franklin H Kennedy,
	Trynos Kufazvinei (Group Finance Director)*, David Makwara, Canada Malunga, Rute Moyo, Charles Msipa, Sifiso Ndhlovu, Vimbai Nyemba, Webster Rusere* (*Executive)