Revision of loan interest rates boosts GetBucks’ profit

Harare – Financial services provider, GetBucks MicroFinance Limited’s (GetBucks) profit for the three months ending September 2018 grew by 18 percent to $1.3 million on the back of a 77 percent increase in the loan book.

Giving a trading update at the Company’s AGM in the capital on Tuesday, Managing Director, Terrence Mudangwe said growth was driven by a decision by management to revise loan interest rates in the last quarter.

He said that the growing proportion of loans to SMEs did not affect the quality of the loan book.

“The quality of the book continues to be good and has been sustained from prior year even with the growth of SME loans.”

Mudungwe also pointed out that as a Fintech, Getbucks continues to utilize technology to ensure that its turnaround time for individual and business loans is still the fastest in Zimbabwe, its convenience levels continue to improve, and its cost structures remain lean.

He said the Company has recently ventured into secured lending for high network individuals to ensure that the convenience of quick simple loans is enjoyed by all.

Additionally, on funding, he said the institution is adequately capitalized and during the quarter equity grew by 29 percent from prior year.

“Local funding lines are being explored with multilateral institutions and various banks. Our profile has given us the ability to borrow at prime rates from local and international lenders.”

– Equity Axis News

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Equity Axis is an online financial media service platform focused on African markets offering real-time stock quotes, news, analysis and data.

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