Harare – ZSE listed deposit taking and fintech microfinance institution, GetBucks recorded $3 million in net profit in the six months period ended December 2018. The profit position compares more favourably to $2.58 million achieved in the same period of the prior year, a growth of 16%.

The growth in bottom line was driven by a surge in interest income which in turn was derived from a growth in leverage upon which a loans onslaught was staged.

GetBucks chairman Rungamo Mbire said the result was boosted by an increase in net interest income of $8.3 million from $6.4 million in the prior year.

“Interest expense increased by 137% as the bank increased borrowings in response to higher demand for lending from customers,” he said.

“Impairment charge rose from $0.1 million to $0.3 million giving a non-performing loan ratio of 6% which was within expected parameters.”

The Group’s operating expenses grew by 30 percent to $3.6 million from $2.8 million due to cost containment measure implemented by the management.

“However, rising costs remain a significant challenge for the bank. The bank has assembled a strong internal IT development team to ensure that we develop solutions to reach customers easier, faster and cheaper,” said Mbire.

Loan provisions grew by 52% from $21.6 million to $32.3 million, underpinned by growth in the productive SME loan segments and education loans.

Total assets increased by 51% from $31 million to $47 million due to increased loan disbursements and investments in property.

Mbire also indicated that the company was adequately capitalised with a net equity position of $19.67 million as at December 31, 2018. This capital position is well above the minimum regulatory threshold of $5 million for microfinance banks.

In their previous financial results, the group mentioned that they are set to launch mobile and internet banking platforms which is expected to boost its revenues.

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.

“All these measures will improve service levels for clients going forward,” Mbire said.

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