GetBucks, a deposit-taking microfinance institution listed on the Zimbabwe Exchange, has reported a 25% growth in profit after tax in the first six months of the year, buoyed by a reduction in operating expenses and better repayment collection efforts.
During the financial year ended June 2018, Getbucks posted a post-tax profit of $4,5 million, up from $3,6million in the same period in 2017.
The microfinance institution restructured its product offering to ensure better access to credit for our customers, which resulted in more affordable products but led to a decrease in overall revenue.
The microfinance bank disbursed 47 000 loans during the review period, 38% more than the same period last year when 33 860 loans were approved. The trend is anticipated to continue through access additional lines of credit.
“This growth was driven by lower impairments of $0,2 million (2017:$1 million) and reduced operating expenses of $6,1 million (2017:$6,7 million),” Getbucks chairman Rungamo Mbire said.
“Impairments improved significantly due to better repayment collection efforts, increased collection channels and improved credit scoring models. Operating expenses declined as management fees decreased due to continued localisation of services that were being obtained from our group.”
The institution is capitalised to the tune of $17 million, which is above the minimum regulatory threshold of $5 million for microfinance banks.
Mbire said the bank would continue to build capacity to deliver services from international resources to counteract local foreign currency shortages.
The bank seeks to leverage on technology to deliver its services in order to remain competitive in the market.
Already the bank successfully launched its retail offerings including point of sale machines; Zimswitch-enabled debit cards and ZIPIT for its individual and corporate clients.