BUSINESS REPORTER
GetBucks Microfinance Bank swung to a loss of ZWL$30.6m in the 12 months to December 31, 2023 from a profit of ZWL$109.76m achieved in the previous year on the back of a dip in net interest income despite a jump in other incomes.
Net interest income dropped to ZWL$398 948 603 from ZWL$961 321 700 in 2021.
Total income for GetBucks increased to ZWL$1.48m in the period under review from ZWL$1.40m reported in the previous year.
Total assets for GetBucks stood at ZWL$4.15bn in the period under review from ZWL$3.48m in 2021.
Loan book increased by 147% to ZWL$1.526bn from ZWL$617bn in 2021.
GetBucks Microfinance Bank board chairman, Rungano Mbire said the bank was engaged in discussions to raise the minimum regulatory capital requirement of US$5m or the Zimbabwe dollar equivalent.
The Reserve Bank of Zimbabwe has given GetBucks up to December 31, 2023 to comply with the regulatory requirement.
“The microfinance bank is in the process of negotiating transactions as part of its capital raise initiative,” Mbire said.
He added: “The anticipated capital raise will help the microfinance bank address the regulatory minimum capital requirement of US$5 million equivalent. The raised capital will reduce the microfinance bank’s cost of funding, as well as capacitating the microfinance bank’s expansion drive.”
Mbire said trading in US$ ensures a significant degree of certainty in planning and operations.
It comes at a time when the Zimbabwe dollar continues to be pummelled by both inflation and exchange loss against all the major currencies.
These vices necessitate the microfinance bank continuing to implement capital preservation initiatives to preserve shareholder value.
Managing director Edwin Chavora said he was optimistic the recapitalisation of the institution will happen this year.
He said: “It will happen in 2023 which should see us being able to underwrite more business.”
Chavora, however, expects headwinds to continue to come from inflationary pressures being experienced due to currency volatility.
He also expects elections to slow down growth, as businesses tend to adopt a wait and see approach in an election year.
