FINCORP RECORDS 34.92% PROFIT DROP

MBABANE – The Swaziland Development Finance Corporation (FINCORP) has realised a profit drop of 34.92 per cent, which amounts to E8.8 million in monetary terms.

FINCORP, a company with two shareholders in the Swazi government and Tibiyo TakaNgwane holding 80 per cent and 20 per cent respectively, reported a group profit after tax of E16.4 million.

“This is a decline from the profits of E25.2 million made the previous year. This is largely because the parent company posted a loss of E8.6 million which is largely attributable to foreign exchange valuation losses of 14.8 million,” reported Tibiyo TakaNgwane in the financial year ended April 30, 2016.

It was explained that the foreign exchange losses resulted from foreign currency denominated borrowings with the International Corporation for Development Finance (ICDF). However, only E3.8 million of these losses had been realised.

“The balance of E11 million are unrealised foreign exchange losses and provisions which are not tax deductible, FINCORP attracted a tax expense of E1 645 345 despite making losses for the year,” it was explained.     

Under operations, it was mentioned that loan commitments (undisbursed approvals) as at the end of the year were 53.5 million.
On a positive note, the brokerage business, under the subsidiary ‘Finance Insurance Brokers’ continued to improve performance under new management and support of the parent company, FINCORP.

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