CHIEF EXECUTIVE OFFICER’S REPORT

It gives me great pleasure to present to you the InnBucks’ audited financial results for the sixteen months period ended 30 June 2023.

The operating environment has been tight for businesses with ZWL liquidity being largely constrained throughout the period. This has resulted in a significant shift that has seen businesses gravitating towards foreign currency denominated transactions.

The following form part of the InnBucks’s strategic foundations as we move ahead:

- Increasing customer activity within the MicroBank. - Growing a profitable lending book. - Driving domestic and international remittance. - Significant leverage on technology, and - Driving structured finance.

Additionally the MicroBank continues to improve internal processes, compliance and risk management elements going forward.

Business performance

The MicroBank’s total income over the sixteen months to 30 June 2023 stood at ZWL45.80 billion largely driven by net interest income of ZWL1.08 billion and fee and commission income of ZWL14.15 billion. The resultant profit after tax was ZWL24.60 billion. Total assets stood at ZWL92.51 billion with cash and interest generating financial assets constituting 58% of the assets.

Our products and service commitments InnBucks’ remains committed to providing innovative products and services. The MicroBank has partnered with several key stakeholders to ensure that the needs of the diversified clientele base are met. Loans, payroll processing, structured finance, international banking and the wallet services are some of the products being offered by the MicroBank.

Outlook

The liquidity challenges coupled with the increase in the minimum lending rates will see most businesses shifting their operations from local currency to foreign denominated currencies. InnBucks has positioned itself in a manner that ensures business continuity in this regard.

The MicroBank continues to rollout various products as part of its strategic focus. Electricity sales, nano loans, and exciting customer loyalty products are some of the services earmarked for the second half of 2024 financial year.

Appreciation

My heartfelt appreciation goes out to all our valued stakeholders and customers who have shown support and commitment to the MicroBank and its products. I am very grateful to my fellow directors for the steering arms that held strong during the period and I am equally grateful to the InnBucks’ employees for their resilience and dedication.

DAISY ZINYEMBA

CHIEF EXECUTIVE OFFICER DATE: 23 February 2024