GetBucks in $2,58m profit

Published: 01 March 2018

Microfinance institution, GetBucks, said it has recorded a net profit of $2,58 million for the six months ended December 2017, showing a 51 percent increase from last year.

GetBucks chairperson Glovah Madzima said the above market expectation result was achieved through increased interest income of $4,96 million from $4,38 million in the prior year.

"Income and fees declined from $2,1 million to $1,9 million as the bank's broader product mix included lower priced offerings targeting consumer product financing, which is in line with the bank's move to lower fees on loans," he said.

"Decreases were also registered in interest expense which declined to $0,4 million from $0,5 million as the bank relied on internal funding for the business."

The Zimbabwe Stock Exchange-listed financial institution's operating expenses in the period under review decreased from $3,12 million to $2,77 million mainly due to lower management fees as the bank reduced reliance on group resources following internal recruitments and localisation of most services.

Madzima noted that loan provisions also decreased as the bank collections improved in the half year period.

"The net loan book grew from $15 million to $19 million as total assets grew by 13 percent from $22,1 million to $25,5 million on the back of increased loan disbursements of $16 million compared to $10,5 million in the previous half year.

The GetBucks boss further indicated that his company was adequately capitalised with a net equity position of $15,5 million as at December 31, 2017. This capital position is well above the minimum regulatory threshold of $5 million for microfinance banks.

"The bank is poised to become a significant player in the provision of micro loans due to new lines of credit for the SME, Agriculture and Micro housing sectors. These lines of credit complement our existing listed medium-term note program," Madzima said.

Keeping in line with the company's stated policy, the GetBucks board proposed an interim dividend of $482 000 being $0,00044 per share.

- The Financial Gazette

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