FBC after tax profit up 3 pct to $9,6 mln in H1 on cost cutting

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HARARE,– Financial group FBC Holdings on Wednesday reported a three percent increase in after-tax profit to $9,6 million in the six months to June, from $9,3 million recorded in the same period last year, on cost cutting.

Total income decreased by 4 percent to $45 million from $46,6 million last year, following a central bank directive to cap interest rates and transactional charges.

Net interest income was down 6,7 percent to $20,97 million from $22,5 million previously, while fees and commision income also declined from $12,5 million to $12,3 million.

Cost to income ratio improved from 76 percent to 74 percent as expenses during the half under review decreased by 6,8 percent to $33,1 million from $35,5 million incurred in the comparable period last year.

Chief executive John Mushayavanhu told analysts on Wednesday that government had continued to honour all its obligations on maturing Treasury Bills (TB). FBC has a TB stock of $105,5 million, with $7,3 million of them having been received from Zimbabwe Asset Management Company (ZAMCO) for the acquisition of non-performing loans. The remaining $98,5 million were issued under various government budgetary support schemes.

The group’s assets increased by 11 percent to $676,6 million from $610,1 million recorded in the same period previous year.

The group’s non performing loan ratio increased from 4,34 percent recorded in December 2016 to 7,14 percent, despite loans and advances declining 7 percent from $276,5 million to $258,3 million. Total deposits increased by 14 percent to $518,1 million from 455,5 million in the same period last year.

The group declared a dividend of 0,22 cents per share. – Source