Financial services group FBC Holdings Limited has finalised and satisfied all regulatory requirements for the setting up of regional subsidiary, FBC Re Mauritius with operations expected to start soon.
Group chief executive officer John Mushayavanhu, said the group had gone through all the processes for licensing the business.
Mushayavanhu said the process had taken longer than anticipated but the business was set to open its doors as soon as they got regulatory approvals from that country.
“We are going through the process of getting authorisation,” said Mushayavanhu at the group’s financial results presentation in Harare on Monday.
“We have submitted applications. What they do is look at it and ask a few questions as part of the process. All things being equal very soon we should be able to conclude that process. We have attended to all the requirements as per regulations. As of now, the business is not yet open,” said Mushayavanhu.
Despite the challenges weighing down the insurance sector in Zimbabwe, insurance operations registered a modest 16 percent growth in net earned insurance premium during the year to December 2018.
Management improved performance to increased volumes of business across the subsidiaries supported by the continued entrenchment of the FBC brand in the market.
Total insurance claims went up 41 percent.
Group’s after tax profit for the year under review rose 91 percent to US$44 million from US$23 million the prior year on the back of its diversified business model while profit before income tax went up 86 percent to US$54,6 million.
Basic earnings per share registered a 92 percent growth to US6,95 cents per share.
The group’s total income rose 39 percent to US$145,9 million on the back of a strong performance that was registered in all major revenue streams driven by a commendable product penetration in the market.
FBC Bank was the major contributor after its total income and assets rose 47 percent to US$89,3 million and 61 percent to US$896 million.
Likewise, net income interest was up 41 percent to US$65,2 million during the period under review while net fees and commissions income also increased by 35 percent to US$42,8 million from US$31,6 million.
Cost-to-income ratio came in at 62 percent from 72 percent in the prior year.
Loans and advances went up 35 percent to US$405 million. At US$73,3 million, the group’s administrative expenses were, however, 29 percent higher compared to the previous year, reflecting the adverse changes in the operating environment.
FBC’s total assets for the period surpassed the US$1 billion benchmark representing a 56 percent growth from US$712,4 million the prior year.
The group’s capital position over the same period closed at US$178,3 million, translating to a 24 percent growth from US$144,6 million recorded in the previous year.
Market capitalisation on the Zimbabwe Stock Exchange closed the year at US$235,2 million, representing a 32 percent trading premium to net asset value.
Going forward, the group will among other strategies focus on digitalisation and diaspora mortgages as its growth initiatives.
Final dividend proposed was RTGS$6,2 million, excluding an interim dividend of US$2 million paid in September 2018.