GetBucks Microfinance Bank recorded a profit after tax of $3.6 million for the year ended 30 June 2017, an increase from $3 million last year.
According to the Group Managing Director, Mercy Murevesi, the increased profit was a result of increased Interest Income that went up by 19%.
“The increased profit arose due to increased Interest Income that went up by 19% from $7.8 million to $9.3 million,” said Murevesi.
As a direct result of increased lending, GetBucks disbursed $21.2 million compared to $13.0 million in the previous year. This was boosted by the introduction of Small to Medium Entreprises loan business.
However, due to the loans being short term in nature, the loan book only increased by 9% from $13.8 million to $15.0 million.
Operating expenses grew from $5.9 million to $6.9 million over the same period due to increases in selling expenses and staff costs as this was our first financial year with a full complement of banking staff, emanating regulatory compliance with the requirements for deposit taking as well as the introduction of new products and technologies.
According to GetBucks, retail banking business is expected to yield good results in the coming period as more SMEs entrust them with their funds.Deposits for GetBucks increased to $1.5 million from $0.6 million.
In addition, loans and advances to customers increased by 9% to $15.0 million with total assets growing by 7.6% from $20.5 million to $22.1 million.
GetBucks also reported that their balance sheet is dominated by liquid assets of cash and financial assets, with efforts underway to create a more robust balance sheet that will be able to withstand economic shocks through investments in fixed property.
“Loans and advances to customers increased by 9% to $15.0 million.
“In April 2017, the bank launched the first listed bonds on the Zimbabwe Stock Exchange. $5.4 million was raised
from the first series of the program as part of a larger $30 million program to be raised over the next 3 years.
The second series is currently open for investors.
“This is a significant milestone considering that this is the first Zimbabwean Listed Bond in over a decade. At 11% per annum this is the highest coupon rate on the market and offers bond holders a good return,” said Murevesi.
