FBC Holdings to delacre $1,5 million dividend
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