Diversified financial services group, FBC Holdings Limited 2019 half year (HY) performance yielded positive results as net income reached ZWL$ 198.4 million mainly driven by its banking subsidiaries, the company said, Thursday morning.
The Group also benefitted from exchange gains following Treasury’s decision to float the Zimbabwe dollar against the USD in February this year.
This resulted in the Group total assets as at 30 June 2019 doubling to reach ZWL$ 2. 359 billion against ZWL $ 1.113 billion recorded 31 December 2018.
The strong performance was attributed to the Group’s diversified business model that saw its subsidiaries post commendable returns, particularly the banking unit.
“Following the change in the functional currency, FBC Holdings achieved a commendable set of results for the six months ended 30 June 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,” FBC Group chairman Herbert Nkala said in a statement accompanying the company HY results.
“The Group benefitted from its effective hedging strategy by recording notable exchange gains and fair value gains following the introduction of the Zimbabwe dollar. Total net income for the Group was ZWL$198.4 million for the period under review, primarily driven by the banking subsidiaries,” he added.
Net interest income performance was at ZWL$27.4 million for the period under review as net fees and commission income of ZWL$32.3 million was realized as the Group continued to make strides on its digitalization strategy.
Net income from property sales was ZWL$1.05 million for the period reflecting a slowdown in property sales as the market readjusts to determine pricing equilibrium in response to policy changes on the transacting currency.
Strong income performance hence ensured that the Group’s cost-to-income ratio is neutralized to an improved 55 percent compared to 71 percent in comparable period 2018.
However the group said it remains cautious of the outlook going into second half of the year given the oscillating shocks in the economy.
An interim dividend of 2.232 ZWL cents per share was proposed for the period under review.