Zimbabwe News and Internet Radio

FBC reports 267pc jump in profit

By Michael Tome

FBC Holdings posted a $54,3 million profit after tax for the half year to June 30, 2019 a 267 percent growth from $14,8 million realised in the same period last year.

FBC Holdings
FBC Holdings

The group recorded a $90 million profit before income tax for the period under review as total income stood at $198 million from $64,5 million in the prior comparable period in 2018, all attributable mainly to the group’s diversified business model.

Net income from property sales was $1,05 million in the period reflecting a dip in property sales as the market realigns to determine pricing equilibrium in response to recent policy pronouncements on the transacting currency.

The bank’s statement of financial position for the period under review stood at $2,36 billion, with loans and advances of ZWL$1,2 billion constituting 52 percent of total assets.

Cost to income ratio improved to 55 percent compared to 71 percent recorded in 2018 due to strong income performance reported during the period.

This performance comes amid turbulent economic environment especially in the first half of the year resultant of policy promulgations in the first half of the year particularly SI 33 and SI 142 in February and June of this year respectively.

FBC Holdings Group’s Chairman Mr Herbet Nkala said: “The operating environment remained challenging throughout the first half of 2019, in this period, inflationary pressure remained a cause for concern and its effects have been felt across the economy as evidenced by the general increase in the cost of doing business.

“The annual inflation rate has been on an upward trajectory having closed the first half of 2019 at 175,7 percent from 42,1 percent at the beginning of the year.

“The increase in prices of goods and services was largely being driven by the adverse movement in foreign exchange rates.”

Mr Nkala emphasised the need for a better-quality economic and political environment for the good of business.

“The present political and economic climate creates a wide range of challenges across many industries which result in difficulties but also some opportunities for the group.

“The group remains optimistic that the various policy interventions will yield the desired results for long term sustained economic growth,” he said. The Herald