GetBucks Micro Finance Bank has witnessed a significant growth in its assets in the year ended 30 June 2017 from $20.5 million to $22.1 million representing a 7.6% growth and a profit after tax of $3.6 million.
According to Group Chairperson, Glovah Madzima, the company’s balance sheet was dominated by liquid assets of cash and financial assets and efforts are underway to create a more robust balance sheet that will be able to withstand economic shocks through investments in fixed property.
“The balance sheet is dominated by liquid assets of cash and financial assets and efforts are 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 Madzima.
He added that the GetBucks recorded a profit after tax of $3.6 million for the year ended 30 June 2017, an increase from $3 million last year with the increase attributed to increased interest income that went up by 19% from $7.8 million to $9.3 million.
“This was a direct result of increased lending that saw $21.2 million being disbursed this year compared to $13.0 million in the previous year supported by introductions of SME loans 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,” added Madzima.
He further noted that the company’s operating expenses grew from $5.9 million to $6.9 million over the same period, mainly due to increase in selling expenses and staff costs as this was their first financial year with a full complement of banking staff.
Madzima added that the company is hopeful that its retail banking operation will yield positive results as a result of increased trust from clients.
“Our Retail banking business is poised to yield good results in the coming period as more Small to Medium Enterprises entrust us with their funds, however this is still a relatively new business avenue for the bank. This saw our deposits increase to $1.5 million from $0.6 million,” he said.
