FBC Holdings Limited has posted a strong financial performance in the year ended 31 December 2018 with total assets base growing by 56 percent to US$1,1 billion compared to US$712,4 million in the previous year. In a statement accompanying the group’s financial results for the period, chairman, Mr Herbert Nkala, attributed the positive performance to continued success of the group’s diversified business model.
“The group’s total assets as at December 31, 2018 surpassed the US$1 billion mark recording a 56 percent growth to US$1,1 billion from US$712,4 million the previous year.
“The group’s capital position over the same period closed at US$178,3 million, translating to a 24 percent growth from US$144,6 million recorded in the previous year,” said the chairman.
“Our 2018 financial performance is a reflection of the continued success of our diversified business model, which has enabled us to continue bolstering our performance.”
The group’s market capitalisation on the Zimbabwe Stock Exchange closed the year at US$235,2 million, representing a 32 percent trading premium to net asset value. During the period under review, FBC Holdings Limited posted a profit before tax amounting to US$54,6 million, which was 86 percent ahead of US$29,3 million in the prior year.
The group also registered a profit after tax of US$44,4 million, which was 91 percent better than 2017’s amount of US$23,2 million.
“Total net income for the group was up 39 percent to US$145,9 million, with strong growth being registered in all the major revenue streams driven by a commendable product penetration of the market.
“Net interest income was up 41 percent to US$65,2 million from US$46,1 million, while net fees and commissions income also increased by 35 percent from US$31,6 million to US$42,8 million,” said Mr Nkala.
He said performance of the group’s property development operations was also stronger in 2018 as evidenced by the 112 percent growth in their gross profit to US$2,5 million from prior year.
Despite the challenges weighing down the insurance sector in Zimbabwe, Mr Nkala said, the group’s insurance operations managed to register a modest 16 percent growth in net earned insurance premium. The improved performance was driven by increased volumes of business across the subsidiaries supported by the continued entrenchment of the FBC brand in the market.
“The group’s impairment allowance charge on financial assets for the period is down 63 percent, mainly due to the effects of changes to International Financial Reporting Standards (IFRS9), which uses an expected credit loss model compared to the previous model that used an incurred approach,” he said.
Meanwhile, in 2018, the group paid a total dividend amounting to RTGS$6,2 million and US$2 million that was paid last September.–CHRONICLECO.ZW