FBC Holding secures US$10 million line of credit
FBC Holdings is close to securing a five year line of credit facility worth US$10 million with a Botswana-based regional financial institution.
This was revealed by FBC Holdings’ group chief executive officer John Mushayavanhu at the financial institution’s annual general meeting.
He said the US$10 million line of credit was expected to improve the financial institution’s Nostro liquidity and drawdown is expected by August this year.
“The funds will be on lent to our exporting customers in an effort to enhance exports and improve the bank’s nostro funding,” he said.
Mushayavanhu said the group was exploring various other initiatives to accelerate the bank’s recapitalisation plan in order to defend FBC Bank’s market positioning.
He said all the group’s businesses, including FBC Securities, were profitable, adding that all their subsidiaries were compliant with minimum capital requirements with FBC Bank on course to achieve its 2020 recapitalisation targets as per the recapitalisation plan approved by the Reserve Bank of Zimbabwe (RBZ).
“Barring major changes in the operating environment, we are anticipating to exceed last year’s comparative period’s performance. While we are not immune to the decline in business activity across various sectors of the economy, the diversity of our revenue streams cushions us better in such challenging times,” Mushayavanhu said.
He said FBC Holdings had invested over US$1 million in compliance-related technology in order to maintain correspondent banking relationships and more investments are expected.
“FBC Bank posted good results for the five months to May 2016 and is set to exceed its performance for the first half of last year. The good performance was attributed to a reduction in the bank’s cost of funding, resulting in an improved net interest margin. The bank has also seen rapid transaction growth, especially in the area of mobile and online transactions,” he said.
FBC Holdings’ building society recently completed three projects in Greendale, Newlands and Belgravia and these are almost sold out and contributing to the growth of the mortgage book, whikle FBC Re-insurance maintained its dominance in the Reinsurance market in Zimbabwe, commanding net premiums market share of 20,9 percent.
Performance at Eagle Insurance slowed down for the period ended May 31, 2016 as a result of increasing claims on the Hospital Cash Plan product..
MicroPlan posted very good results for the half year, way in excess of what it achieved in the first half of 2015. The unit now commands an 11 percent market share by measure of gross portfolio size, making it the largest non-deposit taking micro finance institution in Zimbabwe, according to the RBZ.
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