FBC reported record profits in the year ending December 2011, shrugging off the weak sentiment currently prevailing in the financial sector.
Net profit rose 644% to $12,5 million and earnings per share shot up 21 000% to 2,11c from 0,01c.
Cost to income ratio improved by 19% to 72% from 89%.
Total income for the group was $56,9 million while expenses were at $37,5 million.
Assets grew by 18% to $280 million from $236 million.
The loan book stood at $109,64 million with the group having provided $3,6 million for impairment.
Chief executive officer John Mushayavanhu told analysts on Wednesday provisions were prudent as banks were in the process of moving towards Basel II requirements.
Splitting the loan book, manufacturing had 25%, individuals 21% while agriculture had 12%.
In terms of asset quality by grade, the bulk of the loan book was in A-B category at $106,44 million with a small mandatory provision of $851 608.
The lower categories only had $6,79 million with an impairment of $2,74 million.
Deposits were $150,68 million which Mushayavanhu said was spread evenly across sectors except for financial services at 41% of the amount.
This was because the bank carried deposits from pension funds.
The loan-to-deposit ratio was at 75% even at the peak of withdrawals, which Mushayavanhu said was within normal ranges.
Mushayavanhu said the strategy lay around good liquidity management and asset quality.
“If you don’t get these two right then your bank will be headed for trouble.”
FBC Bank posted a pre-tax profit of $6,5 million making it 39% for the total group.
“There had been an improvement in operations with the group focused on pushing more of its products through the e-commerce platform in a bid to reduce distribution costs,” Mushayavanhu said.
“Maintaining a bank teller costs money, therefore the group is trying by all means to ensure it uses electronic means as a way of maintaining that money.”
During the period under review, the group had established Microplan Financial Services in order to harness deposits that lay with the informal sector.
Shareholding in Eagle Insurance had been increased to 95%, with Mushayavanhu saying the group would soon get a return on investment.