GetBucks profit up 66 percent

GETBUCKS Microfinance Bank Limited’s profit for the first quarter to September 30, 2017, rose by 66 percent to $1,1 million compared to the same quarter last year. Interest income grew 18 percent year on year to $2,1 million on the back of growth in loans and advances that also jumped 14 percent.

Managing director Mercy Murevesi, attributed the growth to the introduction of new products for the small to medium enterprises such as asset finance, home equity and mortgage loans.

“Our first quarter results to September 30, 2017, have been encouraging and the bank has continued on the path to growth,” said Mrs Murevesi at the financial institution’s annual general meeting in Harare yesterday.

Equity grew by 29 percent from prior year.

Cost to income ratio improved to 48 percent from 55 percent last year on the back of the bank’s focus in growing revenues and managing costs using technology.

Following the cash challenges the country has been experiencing since last year, financial services providers across the country have strengthened digital platforms as the country embraces cashless transactions.

“As a fintech player, the bank is working on increasing a number of electronic channels available to its customers for easy access to its services.

“To that end, the company is now fully certified to issue debit cards that also operate on the Zimswitch platform as well as Zipit. This is in addition to our existing presence on the RTGS (Real Time Gross Settlement) and paynet platforms,” she said.

Mrs Murevesi added the bank has had a significant reduction in impairments and write offs in the quarter under review due to improved credit risk assessment methodologies and aggressive collection techniques.

Resultantly, the bank closed the period with a non performing loans (NPL) ratio of below 5 percent and a loan loss coverage ratio of 80 percent.

The bank is also adequately capitalised with a capital adequacy ratio of 27 percent and a net capital base of $14 million against the Reserve Bank of Zimbabwe (RBZ) minimum regulatory requirement of $5 million.

Management at Getbucks is upbeat the bank will maintain the growth trajectory as it keeps its commitment to improve cost efficiencies in order to enhance shareholder value.

In April this year, GetBucks launched a $30 million bond programme. The first tranche of $5,4 million was fully subscribed while the second tranche is still open to investors.