FNBB profits fall on industry headwinds
Tuesday, February 23, 2016
Despite a six percent growth of the loan book in the period, FNBB’s interest income took a two percent knock, as the cost of sourcing new funds remained high reflected by a 20 percent rise in interest expenses.
“Given the pressures on the economy, the bank continued to be prudent in its lending, but still achieved growth in advances of six percent on the prior year. This growth emanated mainly from group schemes, where deductions are from source, and from both home loans and WesBank where each loan is secured by the asset. “Despite the difficult economic conditions, and assisted by both priority focus on collection strategies and selective lending practices, growth in impairments was confined to 10 percent. “Non-interest income increased by 11 percent, reflecting the bank’s success in increasing transactional volumes through cross selling to its customer base, and by increasing the numbers of Automated Teller Machines (ATMs), Advance Deposit Taking Machines (ADTs) and clients using Online Banking,” said CEO, Steven Bogatsu.
The Ministry of Agriculture, local producers, retailers, and industry associations must work together to overcome the obstacles hindering vegetable production and distribution.This collaborative approach is essential to improve the availability, quality, and affordability of vegetables in the market.Firstly, the Ministry of Agriculture should provide support and guidance to local farmers to enhance their productivity and efficiency. This could...