LISTED financial services group FBC Holdings Limited has registered a strong financial position at ZWL$2,36 billion with profit after tax amounting to ZWL$54,3 million for the six months ended June 30, 2019.
In a statement accompanying reviewed interim financial results for the period under review, FBC Holdings chairman, Mr Herbert Nkala, attributed the positive performance to a diversified business model.
The group offers a range of financial services through subsidiaries that span commercial banking, mortgage financing, short-term insurance, re-insurance, securities trading and micro financing.
“Following the change in the functional currency, FBC Holdings achieved a commendable set of results for the six months ended June 30, 2019, recording a profit before income tax of ZWL$90 million and profit after income tax of ZWL$54,3 million. The favourable performance continues to be underpinned by the group’s diversified business model,” he said.
Mr Nkala said the group benefited from its effective hedging strategy by recording notable exchange gains and fair value gains after the introduction of the Zimbabwe dollar. During the period under review, total net income was $198,4 million primarily driven by the banking subsidiaries. Net interest income performance was at ZWL$27,4 million.
“Despite the challenges weighing down the insurance sector, the group recorded net earned insurance premiums of ZWL$18,5 million for the six months ended June 30, 2019,” he said.
“Net trading income for the period was ZWL$73,3 million with the major proportion being foreign exchange gains. Other operating income comprising fair value adjustment to financial assets and investment properties totalled ZWL$45,8 million.”
The group’s statement of financial position for the period stood at ZWL$2,36 billion with loans and advances of ZWL$1,2 billion constituting 52 percent of total assets. Total equity attributable to shareholders of the parent company was ZWL$269,9 million translating to a net asset value of ZWL$43,53 cents per share.
Mr Nkala said as at June 30, 2019, the FBC Holdings mortgage business legacy debt stood at US$5 million from regional financial institutions for the purpose of providing mortgage financing.
“An amount of US$2,38 million is outstanding at reporting date. In line with Exchange Control directive RU28 dated February 22, 2019 and Exchange Control circular 08 dated July 24, 2019, the group registered the amount outstanding as legacy debt and an amount of ZWL$2,38 million was paid to the Central Bank in line with the directive.
“The group has accordingly classified the payment to the Reserve Bank as a receivable in United States dollars,” he said. FBC Holdings is also in the process of registering external loan of US$10 million obtained from another regional financial institution under the same arrangement. On outlook, Mr Nkala said the group remains optimistic that various policy interventions to address the challenges facing the economy by Government will produce the desired results for long-term sustainable economic growth. — chroncle.co.zw