FBC records 135 percent profit increase

June 30 compared to the same period last year.
In a statement accompanying the financial results, FBC chairman Mr Herbert Nkala said the increase in profits was due to the restructuring exercise that was undertaken by the bank last year.
“The group has started benefiting from an improvement in both economic activity and the operational efficiencies arising mainly from the restructuring exercise undertaken last year, which culminated in a leaner, sustainable and focused structure,” he said.
In the period under review, profit before tax of US$6,43 million was recorded up from US$2,81 million attained in the prior period.
Total income grew by 39 percent to US$24,39 million up from US$17,48 million during the previous period.
Mr Nkala said that the increase was mainly due to an improvement in economic activity, the judicious management of assets and increased product and services penetration.
“The income was driven largely by net interest of US$5,96 million, fees and commissions of US$7,81 million, trading income from Turnall Holdings Limited of US$6,57 million, net earned insurance premium of US$2,78 million and other operating income of US$1,26 million,” he said.
All the results recorded by the group’s businesses were positive except for FBC Securities and Eagle Insurance, which recorded a combined loss of US$118 000.
Mr Nkala said a number of strategic initiatives were being pursued to move these subsidiaries into profitability.
During the course of the year, FBC acquired a controlling 95 percent stake in Eagle Insurance Company and this “has significantly improved the group’s revenue generating capacity”.
“The group now has a direct foothold in the insurance business, which hitherto was indirect though FBC Reinsurance and bancassurance through third parties.
“It is expected that the acquisition will augment the unlocking of value for the group through comprehensive one-stop financial service facilities,” he said.
He also added that the group is now ready to roll out a variety of e-driven products and services for the convenience of customers in the second half of the year.
Mr Nkala said that with the continued improvement in the economic environment the group would continue to leverage on various business synergies to generate sustained growth and profitability.