FBC Financial Holdings achieved a strong performance in the first half of 2018, after posting a profit before tax of US$18.8 million and a profit after tax of US$14.8 million on the back of increased volumes of business in its banking subsidiaries.
According to the Group Chairman Herbert Nkala, the Group’s profit before tax increased by 58% compared to the same period last year due to the increase in volume of business in the banking subsidiaries.
“The Group’s profit before tax increased by 58% compared to the same period last year, while profit after tax for the period increased by 54%. The Group’s total revenues increased by 43% to US$64.5 million compared to the same period last year.
“This performance was mainly driven by the increase in volume of business in the banking subsidiaries. Net interest income increased by 19% to US$31.0 million constituting 48% of total income compared to US$21.0 million and 47% respectively for the same period last year.
“The increase is as a result of the significant progress made towards the containment of the Group’s cost of funds and a growth in interest earning assets underpinned by increased deposits,”he said.
He added that the gross profit on property sales decreased by 39% compared to the same period last year, due to the deliberate decision to slow down on property sales to protect value in response to our assessment of the prevailing economic environment.
” Net fee and commission income increased by 64% to US$20.1 million constituting 31% of total income compared to US$12.3 million and 27% respectively for the same period last year.
“The increase was driven predominantly by the significant increase in transactional volumes supported by our efforts to accelerate deployment of Point of Sale machines as well as the success of our Instant Card product.
“The gross profit on property sales however, decreased by 39% compared to the same period last year, due to the deliberate decision to slow down on property sales to protect value in response to our assessment of the prevailing economic environment,” added Nkala.
Meanwhile the Group managed to draw down on a US$90 million structured term loan facility from African Export Import Bank (Afreximbank) in May 2018, with improved terms and conditions, as a successor facility to the US$60 million syndicated facility that was repaid in July 2017.
