FBC Holdings pays out $15,4m in dividends

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Enacy Mapakame
Financial services group FBC Holdings has paid out a cumulative $15,4 million in dividends to its shareholders in the past five years.

The amount constitutes 16 percent of the group’s total market capitalisation.

Speaking on the sidelines of the group’s financial results presentation, FBCH chief executive John Mushayavanhu said the banking group adopted a consistent dividend policy, a sign of commitment towards rewarding its shareholders.

“FBC has a dividend paying history, we have consistently paid dividend in the past five years,” said Mushayavanhu in an interview.

“If you look at our market cap, it is $90 million. This means we have paid over 16 percent of the market capitalisation to our shareholders, so they see a return in their investment with us,” he said.

In the half year to June 30, 2017, FBCH declared an interim dividend of 0,22 cents a share or $1,5 million after reporting an after tax profit of $9,6 million, which was 3 percent above comparable period prior year.

The group’s total income for the period decreased by 4 percent to $45 million on the back of the Reserve Bank of Zimbabwe’s directive to cap interest rates and transactional charges to prescribed lower levels with effect from April 1, 2017.

Net interest income fell 6,7 percent to $20,97 million from $22,5 million in the comparable period.

The decrease was due to reduced gross interest income as a result of the capping of interest rates by the central bank leading to an increased interest expenses as the interest cap on lending was not matched by corresponding decrease in deposit rates which culminated in a reduced net interest margin.

Cost to income ratio improved to 74 percent from 76 percent as expenses during the half under review decreased by 6,8 percent to $33,1 million.

Total deposits increased by 14 percent to $518, 1 million from 455,5 million in the same period last year.

FBCH’s total assets increased by 11 percent to $676,6 million from $610, 1 million recorded in the same period previous year.

As at close of the half year under review, the group had a Treasury Bills stock of $105 million.  Of this, $7,3 million was received from the Zimbabwe Asset Management Company (ZAMCO) while the rest was issued under different Government support programmes. Loans and advances fell 7 percent to $258,3 million. Non-performing loans ratio was at 7,4 percent.

The insurance business registered a 10 percent decline in premium revenues and 16 percent decrease in net earned insurance premium primarily due to depressed activity in the economy and the shift from traditional insurance products.

But gross profit on property sales increased compared to same period last year driven by improved in efficiency in delivering completed housing units.

FBCH statement of comprehensive income

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