FBC Building Society sits on $35 million capital base

Business Reporter
FBC Building Society is sitting on a capital base of $35 million surpassing the minimum of $20 million.

The building society is owned by one of Zimbabwe’s commercial banks, FBC whose gross capital base stands at $43,1 million.

In 2014, the Reserve Bank of Zimbabwe introduced a three-tier system for banks in complying with the minimum capital threshold.
FBC Building Society managing director Felix Gwandekwande said last week the group’s strategic business units were compliant with the minimum capital requirements.

Its strategic business units include the building society, Microplan, FBC Reinsurance, FBC securities, and Eagle Insurance

“Whilst the group is adequately capitalised with a gross capital base of $104,9 million against the minimum capital requirement of $47 million, FBC Bank and building society have a combined gross capital base of $78,1 million. The bank’s gross capital base is $43,1 million against the minimum requirement of $25 million.

“Currently, FBC Building Society is sitting on a capital base of $35 million against a minimum of $20 million,” he said at the group’s cocktail at the recently held Zimbabwe International Trade Fair in Bulawayo.

He said their building society recently embarked on projects that have seen the construction of housing units in Harare, Gweru and Kwekwe.

“We’re in the process of engaging Bulawayo City Council to acquire land for development to fulfil the housing demand,” said Gwandekwande.

Bulawayo has a housing backlog of over 100,000.

“FBC Building Society continues to ride on its successful model and in 2015, sold 44 housing units, subsequently leading to surplus of $6,3 million,” he said.

Gwandekwande also said the bank has been aggressive in its drive to reduce Non-Performing Loans.

“FBC Bank managed to reduce NPLs from 17,24 percent in 2014 to 7,96 percent in 20215. In light of the major achievement, FBC Bank recorded a gross profit of $9,3 million, accounting for 41 percent contribution to the group. The strategic business unit continues to enjoy glowing national and international recognition as a stable brand,” he said.