Economic Overview

Economic Overview – Global

Global growth expected to be 3.0% in 2026. Underlying factors to this growth includes:

• Uneven growth across regions with AI driven investments supporting developed markets.
• Energy importing countries are facing headwinds as global disinflation has stalled.
• The global economy has remained resilient despite geopolitical and energy supply and price shocks.
• Policy priorities remain centered on price stability, building fiscal buffers, strengthening energy security and enhancing AI readiness and productivity growth.

Consolidated Financial Performance Highlights

Investment return – 30 June 2026

• Investment return increased significantly by 568% to $13.7 million, driven mainly by strong performance from the Group’s equity portfolio.
• Net investment returns from equities increased to $12.3 million, contributing 90% of the overall investment return, supported by favorable fair value movements across both listed and unlisted investments.
• The growth in the Group’s unquoted equities was largely on account of counters that delisted from the ZSE.
• Interest income remained stable at $1.5 million in spite of the decline in interest rates, while the impact of higher investment expenses and the fair value loss on gold was relatively limited.
• Overall, the investment portfolio was a significant contributor to the Group’s performance for the year.

Investment Property – 30 June 2026

• Investment property balances increased by 7% to $150.0 million, from $139.7 million at December 2025, with a fair value uplift of $13.8 million during the period. The movement was driven primarily by $12.3 million of unrealised fair value gains, supported by positive revaluations across the portfolio. The largest increases were recorded on land ($5.7 million), CBD Office properties ($2.7 million) and Office Park ($1.4 million), reflecting continued appreciation in property values.
• The land bank portfolio increased to $31.5 million from 28.9million, in line with the general increase in the value of vacant land. The portfolio continues to provide a strong asset base and supports the Group’s strategy of unlocking value from its property holdings providing evidence of potential upside to the current valuations.

Interim dividend – 30 June 2026

The Board declared a interim dividend of $1 million for the half year ended 30 June 2026. The dividend will be paid on an 80:20 basis, with $0.8 million (80%) distributed in USD and the remaining 20% settled in local currency.

Further details on the interim dividend payment will be provided in a separate dividend announcement.

Outlook & Priorities

• Accelerate digital transformation and technology investment to streamline processes, improve operational efficiency, strengthen data-driven decision-making, and deliver a more convenient and seamless client experience.
• Strengthen balance sheet resilience and sustainable profitability through disciplined cost management, active capital and liquidity management, prudent investment decisions, and continued focus on operating efficiency and margin protection.
• Scale the Group’s regional and diversified businesses through targeted market expansion, strategic partnerships, and deeper client and distribution relationships, increasing the contribution of non-domestic and emerging businesses to Group revenue and earnings. This includes the recent launch of a branch office in Rwanda by FMRE Botswana.
• Unlock value from the Group’s asset base by actively progressing property development, land bank utilisation, and other strategic asset optimisation initiatives, while maintaining disciplined capital allocation and attractive returns.
• Enhance execution and accountability across the Group through stronger performance management, improved operational discipline, and closer alignment of resources and investment with businesses and initiatives that have sustainable growth potential.

Related Download

FMHL – Financial Results Presentation for the period ended 30 June 2026.pdf