FBC Holdings in $22 million profit

FBC Building Society’s net  income increased by 21 percent from $12.9 million recorded in the preceding year to $15.6 million.

FBC building society’s core capital stood at $41.3 million as at December 31, far above the $25 million prescribed minimum capital requirement for building societies by 2020.

Additionally, total assets of the building society rose by 18 percent to $147.7 million from $124.8 million recorded in the previous year while total deposits increased by 14 percent from $85.3 million in the previous year to $96.9 million.

The building society’s non-performing loans decreased from 8 percent to 5.92 percent even though loan and advances increased marginally from $58 million in the previous year to $58.4 million.

FBC’s reinsurance unit recorded a 17 percent decline in gross premium written (GPW) from $17.8 million in the previous year to $14.8 million on the back of weak demand for insurance products.

As a result, profit before tax dropped 10 percent from $2.5 million recorded in the previous year to $2.3 million.

Mushayavanhu said Eagle insurance company recorded a 2 percent decline in gross premiums written to $18.6 million, adding that the company will soon be rebranded as FBC Insurance Company.

Mushayavanhu told analysts that the group holds treasury bills (TBs) worth $76.1 million and in the period, total income received from the TBs amounted to $11 million.

He said $7.3 million of the total TBs is categorized under acquisition of non-performing loans by Zamco while the remaining $67.8 million were issued under government budgetary support.

Mushayavanhu said FBC was confident that the government will continue to honour its obligations on maturing TBs.

“Government has consistently paid….  each time there is maturity, bond interest and capital are being paid,” Mushayavanhu told analysts.- The Source

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