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John Mushayavanhu

FBC Holdings Limited is targeting to reduce the level of its non-performing loans to less than five percent by December 2016 in order to remain profitability.

Group chief executive John Mushayavanhu told analysts and the media that the group would continue to use its aggressive strategies to reduce the level of non-performing loans to comply with RBZ requirements.

“During the year our key focus area is to reduce the level of NPLs to five percent by December 31, 2016 in line with RBZ guidelines,” he said.

Mushayavanhu also said the group is targeting to construct more affordable houses in the high density areas in Harare and Bulawayo after successfully completing two projects in Gweru and Kwekwe.

Last year FBC reduced its non-performing loans to 7,96 percent from 15,91 percent for 2014.

The group is also targeting to open five more branches despite economic challenges but mostly targeting  the SMEs market which is not currently serviced by banks.

“We’re going to invest in the SMEs there is a lot of potential in that area, that is where we are going to play and in the housing sector we’ll be also be targeting the SMEs.

“A lot of SMEs can access these facilities they have got houses, which they can use as collateral to access funds,” he said.

He added that the five branches which the bank is opening in partnership with CARE and FAO will be targeting small business people in the rural areas.

During the year ended December 31, 2015 the group recorded a profit before tax of $21,3 million compared to $17,1 million last year while the group’s net income registered a six percent growth to $81,9 million from $77,4 million achieved last year.

The group’s interest income grew by 12 percent to $36,6 million from $21,2 million recorded last year and its contribution to total increased by 45 percent from 42 percent.

The FBC Building Society recorded a surplus $6,3 million for the year ended December 31, 2015, which is relatively comparable to $6,8 million from $50,1 million. – BH24