- Reports ZWL44.8 million loss
- Operating expenses increased by 39% to ZWL160 million
- Total income up 12% to ZWL119 million
HARARE – Getbucks Microfinance Bank Limited (GMBL) on Tuesday reported widening of its net loss by 159% to ZWL44.8 million in real terms for the year ended 31 December 2020, against a net loss of ZWL17.3 million a year ago, because of a net monetary loss of ZWL2 million.
Total assets also decreased by 26% from ZWL589.7 million to ZWL438.3 million in inflation-adjusted terms, as a result of the Microfinance Bank’s capital and value preservation strategy which saw the Bank retaining value in investment property and foreign currency-denominated instruments. On the other hand, monetary assets reduced in value due to the effects of inflation.
Operating expenses proportionally increased during the period under review from ZWL115 million to ZWL160 million primarily driven by a general increase in the cost of doing business.
Borrowings decreased from ZWL210 million to ZWL100 million due to the effects of inflation despite raising additional funding.
“These funds were deployed into the loan book though it also reduced from ZWL173million to ZWL82million due to the effects of inflation,” GMBL chairperson Rungano Mbire said in a statement accompanying the financials.
“The remaining funds were part of the cash and cash equivalents that grew by 35% from ZWL111 to ZWL149million.”
Total income increased registered a 12% increase at ZWL119 million, compared with ZWL107 million a year ago.
Customer deposits increased from the prior year by 104% from ZWL57.1million to ZWL116.7million while the net equity position was ZWL175.6million translating to USD2.1 million.
“The Microfinance Bank is working on strategies to ensure compliance with the new requirement of the local currency equivalent USD5 million effective 31 December 2021,” said Mr Mbire.
The Bank has not declared a dividend for the period under review as it seeks to increase its capital in order to meet the new capital requirement by 31 December 2021.
Going forward, Mr Mbire said the Bank seeks to increase its foreign currency transactional income after having been granted an Authorised Dealership Licence on 12 August 2020 which allows it to participate in the international banking segment.
“This was an exciting development that will enable the Microfinance Bank to offer a broader range of products to its clients whilst increasing foreign currency transactional income,” he said.
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