Diversified financial group FBC Holdings Limited’s total income for the year to December 31, 2018 rose 39% to US$145,9 million as the group’s diversified business model paid dividends.
Net interest income came in at US$65.2 million, a 41% increase, while total assets hit US$1.1 billion, up 56% from the prior comparable period.
After-tax-profit for the year was up 91% to US$44 million from US$23 million in the prior comparable period.
Management said the group’s earnings capacity continues to be buttressed by its diversity with all subsidiaries.
“Our financial performance is a reflection of the continued success of our diversified business model which has enabled us to continue bolstering our performance,” said FBC chairman Herbert Nkala in a statement.
The group’s banking division – FBC Bank Limited – achieved a profit before tax of US$33.8 million on the back of increased revenue in e-commerce products, savings on cost of funds and efficient bad debts recoveries.
FBC Bank was able to achieve an outstanding non-performing loans ratio of 1.1% well below the industry average of 8.9%.
The bank has reached the RBZ minimum regulatory capital threshold of RTGS$100 million by the end of 2020.
FBC Building Society total income increased 21%.
FBC Reinsurance posted decent profit, efforts are still being made to establish an operation in Mauritius.
FBC Insurance recorded 67% decrease in profit before tax as the business was hit by the pricing distortions which saw claims repricing faster than sums insured.
The chairman said the group`s property division registered significant growth during the period under review.
“Performance of our property development operations was stronger this year as evidenced by the 112% growth in our gross profit to US$2.5 million from the prior year.
“Despite the challenges weighing down on the insurance sector in Zimbabwe, our insurance operators managed to register a modest 16% growth in net earned insurance premium.
“The improved was driven by increased volumes of business across the subsidiaries supported by continued entrenchment of the FBC brand market,” he said