Harare – Financial services provider, GetBucks MicroFinance Limited’s (GetBucks) net income interest for the year ended June 30, 2018 declined by 3 percent to $8 326 387 from $8 605 228 realised in 2017.
The Bank posted a profit after tax of $4.5 million in the period compared to $3.6 million the prior year on the back of lower impairments and reduced expenses.
In a statement accompanying its financial results, Getbucks said this growth was driven by lower impairments of $0.2 million compared to $1 million in 2017 and reduced operating expenses of $6.1million compared to $6.7 million last year.
“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 localization of services that were being obtained from our group.”
The Bank said it continues to build capacity to deliver services from internal resources due to foreign currency shortages and consequently, staff costs increased due to higher headcount.
“To ensure better access to credit for our customers the bank restructured its product offering which resulted in more affordable products thereby slightly decreasing overall revenue, however the bank managed to disburse 38 percent more loans up to 47 000 from 33 860 in 2017 and the trend is likely to continue into the coming year as we continue to see improved loan volumes as clients respond to the new offerings and competitive pricing.”
In the period under review, the Bank said total assets grew by 41 percent to $31 million compared to $22 million in 2017 driven by an increased loan book of $21.6 million compared to $15 million the prior year.
The bank said it also invested in treasury bills to manage liquidity, earn income and combined with cash resources of $3.1 million, a capital adequacy ratio of 35 percent against a minimum regulation of 15 percent, it is well poised to continue a growth trajectory.
Getbucks said it continues to access additional lines of credit and $5 million was raised in the just ended financial period.
During the period under review, the Company was adequately capitalized with a net equity position of $17 021 955.
It said this capital position is well above the minimum regulatory threshold of $5 million for microfinance banks.
Additionally, the bank said Dividend Shareholder returns continue to be an important consideration in its business therefore it is keeping with this policy proposed and paid an interim dividend of $0.00044 per share.
“Based on the results attained at the end of the year the Board recommends an additional and final dividend of $0.00038 per share. This will bring the total dividend for the year to $0.00082 per share which the Board recommends as the final dividend for the year ended 30 June 2018.”
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