Published: 21 August 2013

FBC recorded a 20 percent increase in after tax profit to $8.3 million during the financial period ending June 30, 2013 as it continues to be well placed to exploit the new business environment.

The profit was driven by increased revenues from the group's financial services as well as cost containment.

The group leveraged on its diversified business model, with all its subsidiaries except the manufacturing business achieving results that are significantly higher than those for the corresponding period last year. FBC group chief executive Mr John Mushayavanhu said profitability came mainly from the banking side.

"Firstly, our building society is building houses and selling them at a profit and then giving mortgages. That was significant contribution to our profits. On the banking side we increased the number of transactions by going to the lower end of the market introducing new products such as mobile banking so that people are able to transact in the comfort of their homes," Mr Mushayavanhu said.

He said that on the insurance side, gross premium, particularly in the reinsurance segment maintained steady growth with claims experience remaining low because of the underwriting philosophy that the company only accepts only those risks that the company considers bankable.
- herald

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