FBC FY14 profit falls 58 pct on Turnall disposal costs

FBC FY14 profit falls 58 pct on Turnall disposal costs

HARARE, March 30, (The Source) – FBC Holdings posted a 58 percent decline in profit for the year ended 31 December 2014 to $4 million after a book loss of $9 million after it divested from building materials manufacturer Turnall in the third quarter.

Group chief executive John Mushayavanhu told analysts at a briefing on Monday that disposal of Turnall brought up a book loss though they are expecting positive results to be noticed this year as the group will invest more in financial services.

“The total loss from Turnall was once off $9 million and we are not going to experience it again,” he said.

The net interest income was up by nine percent to $77 million from $71 million in 2013 while net interest expenses climbed up by 14 percent to $28,7 million compared to $25 million in the restated financials for 2013.

However, assets grew by 5,5  percent to $477 million despite the disposal of Turnall.

Administrative expenses were marginally up by three percent to $40 million.

The group which is operating on $41 million capitalisation is targeting to reach $107 million capitalisation in 2020 through trading to compliance or merging its building society if the first option fails.

Lending activities have been dominated by individuals who are at 24 percent with manufacturing at 18 percent.

Mushayavanhu said individuals pay back loans better than manufacturing sector and the development has reduced non-performing loans (NPLs). The group is targeting to reduce its NPLs to 10 percent this year.

Earnings per share also dropped by 64 percent to 0,73 cents from $2,03.