FBC records $14,8m after tax profit
BANKING group FBC Holdings Limited (FBCH) reported a 54 percent jump in after tax profit to $14,8 million in the half year to June 30, 2018 as noninterest income increased during the period on the back of increase in plastic money usage.
Profit before tax rose 58 percent to $18,8 million while total income rose by 43 percent to $64,5 million. Basic earnings per share registered a 54 percent growth to 2,31 cents per share. The group declared an interim dividend of 0,2976 cents per share.
Group chairman Herbert Nkala said this was mainly due to increase in volume of business in the banking subsidiaries.
Net interest income increased by 19 percent to $31 million which constituted 48 percent of total income compared to $21 million and 47 percent respectively for the same period last year.
“The increase is 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,” said Mr Nkala.
Net and commission income rose 64 percent to $20,1 million constituting 31 percent of total income compared to $12,3 million and 27 percent respectively for the same period last year.
Mr Nkala said the growth was driven by increase in transactional volumes supported by efforts to speed up deployment of point of sale machines as well as the success in instant card product.
Cost to income ratio decreased 71 percent on the back of increased income and cost containment measures.
The insurance business registered a 7 percent increase in premium revenues and a 1 percent increase in net earned insurance premium primarily due to low activity in the economy and low demand for some insurance products.
Gross profit on property sales fell 39 percent as a result of a deliberate decision to slow down on property sales to protect value in response to the group’s assessment of the prevailing economic environment.
An impairment of $7,2 million was recorded from the $3,6 million in the same period last year necessitated by the need to comply with the International Financial Reporting Standards 9 effective beginning of this year.
Total assets grew 42 percent to $1,01 billion from the December 31, 2017 position of $712,4 million on the back of a 54 percent increase in deposits from customers and borrowings.
Total equity attributable to shareholders increased by 6 percent to $152,6 million, compared to $144,6 million last year driven by retained earnings.