FBC Holdings has recorded a 22,3% growth in after-tax to $8,2 million for the half-year-ended June 30 2015 despite the group’s reduced risk appetite in a market characterised by high interest rates and high risk of default.
BY BUSINESS REPORTER
In 2014, the group recorded $6,7 million.
In the period under review, Net interest income declined by 11% to $14,9. Fees and commission income declined by 4% to $12,3 million while fees and commission expenses declined to $17 273 from 19 742 in 2014.
In a statement accompanying the group unaudited interim results for the six months ended June 30 2015 FBC Holdings chairperson Herbert Nkala said despite the challenging operating environment, the group continues to operate profitably, achieving a profit before tax of $10,1 million for the six months.
“The results are commendable given the group’s reduced risk appetite in a market characterised by high interest rates and increasing credit risk. All subsidiaries, except for the stockbroking business, contributed positively to the group’s earning,” Nkala said.
Nkala said the group recorded a total income of $39,9 million registering a marginal 2% decline from the $40,9 million attained for the same period last year mainly as a result of subdued economic activity.
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“Net interest income at $14,9 million contributed 37% total income. This was however 11% below the same period last year.
“The group has reduced its credit risk appetite and has resorted to selective lending, given the high risk of default in the market. In addition, the cost of funding has remained high due to the unavailability of adequate lines of credit in the country and the high country risk premium loaded on the few available lines of credit, which further reduces margins,” he said.
Fees and commissions contributed 31% of the total income with no real growth due to a downward revision in fees as the group moved towards e-channels transactions, which are high in volume and low in value.
