FBC Hold­ings to delacre $1,5 mil­lion div­i­dend

Chronicle (Zimbabwe) - - Business Chronicle - Oliver Kazunga

LISTED fi­nan­cial ser­vices group, FBC Hold­ings has pro­posed declar­ing a $1,5 mil­lion div­i­dend in the half-year ended June 30, 2016, af­ter reg­is­ter­ing a pos­i­tive per­for­mance dur­ing the pe­riod.

In an unau­dited in­terim re­sults for the pe­riod un­der re­view, the group’s chair­man Mr Her­bert Nkala said their di­ver­si­fied busi­ness model con­tin­ued to yield div­i­dends achiev­ing a $11,1 mil­lion profit be­fore tax re­flect­ing a 10 per­cent in­crease over the same pe­riod last year.

He said all their sub­sidiaries con­trib­uted to the group’s earn­ings.

“I’m pleased to ad­vise share­hold­ers that an in­creased in­terim div­i­dend of 0,2235 US cents per share, to­talling $1,5 mil­lion was pro­posed for the half year ended June 30, 2016, af­ter tak­ing into ac­count the good per­for­mance of the group.

“The div­i­dend pro­posed trans­lates to six times div­i­dend cover and an an­nu­alised div­i­dend yield of 6,98 per­cent,” said Mr Nkala.

Dur­ing the pe­riod un­der re­view, 32 113 244 FBC Hold­ings’ shares were traded on the Zim­babwe Stock Ex­change at a vol­ume weighted av­er­age price of 6,03 cents.

The counter closed the half year pe­riod at 6,4 cents, re­flect­ing an 8,5 per­cent drop from the 2016 open­ing price of 7 cents.

Mr Nkala said the group recorded to­tal in­come of $$46,6 mil­lion reg­is­ter­ing a 16,8 per­cent in­crease on the $39,9 mil­lion achieved for the same pe­riod last year.

This, he said, was mainly as a re­sult of in­creased in­ter­est in­come.

The net in­ter­est in­come reg­is­tered a com­mend­able growth of 36,6 per­cent to $22,5 mil­lion, con­tribut­ing 48 per­cent of to­tal in­come, up from a 41 per­cent con­tri­bu­tion of the same pe­riod last year.

“The growth in net in­ter­est in­come was mainly driven by an im­prove­ment in the cost of fund­ing, over­all growth in in­ter­est earn­ing as­sets and the re-clas­si­fi­ca­tion of sus­pended in­ter­est in­come to earned in­ter­est in­come, fol­low­ing the per­for­mance of some ma­te­rial non-per­form­ing loans.

“Net fee and com­mis­sion in­come recorded a growth of 15,9 per­cent to $12,5 mil­lion from $10,8 mil­lion, as a re­sult of an in­creased vol­ume of elec­tronic trans­ac­tions and con­tri­bu­tion to to­tal in­come re­mained statis­tic at 27 per­cent.”

Mr Nkala said the gross profit on prop­erty sales de­creased sig­nif­i­cantly com­pared to the same pe­riod in 2015, mainly due to tax ad­just­ments on the hous­ing projects.

The gross sales of $3,2 mil­lion were slightly less than the gross sales of $3,3 mil­lion recorded for the same pe­riod last year.

On in­sur­ance busi­ness, he said, the group reg­is­tered a six per­cent de­cline in pre­mium in­sur­ance rev­enues, though net earned in­sur­ance pre­mium was in line with last year, pri­mar­ily due to low ac­tiv­ity in the econ­omy.

“The group’s cost to in­come ra­tio marginally in­creased to 76 per­cent from 75 per­cent for the same pe­riod last year, pri­mar­ily as a re­sult of ex­pan­sion­ary ex­penses in­curred on ex­pand­ing the group’s net­work and an in­creased im­pair­ment al­lowances,” he said.

FBC Hold­ings fi­nan­cial po­si­tion at $575 mil­lion reg­is­tered a 17 per­cent growth on the De­cem­ber 31, 2015, po­si­tion of $491 mil­lion.

The growth in the state­ment of fi­nan­cial po­si­tion was largely driven by a 21 per­cent in­crease in to­tal de­posits com­pared to last year’s po­si­tion.

“To­tal eq­uity at­trib­ut­able to share­hold­ers of the par­ent com­pany in­creased by seven per­cent to $112 mil­lion, com­pared to a po­si­tion of $105 mil­lion as at De­cem­ber 31, 2015, as a re­sult of re­tained earn­ings, which were how­ever, coun­ter­acted by the pur­chase of trea­sury shares of ap­prox­i­mately $1 mil­lion and the pay­ment of a div­i­dend of a sim­i­lar amount,” said Mr Nkala.— @okazunga

Her­bert Nkala

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