FAITH MADZINGA
GetBucks Microfinance Bank swung back into the black after reporting a net profit of ZWL$192m in the year ended December 31, 2021 from a ZWL$72m in 2020 after recording a net monetary profit.
In 2021, net monetary profit was ZWL$25m from a net monetary loss of ZWL$48m.
Operating expenses , however, increased by 55% during the year under review from ZWL$258m to ZWL$399m. The increase was lower than the average inflation for the year under review.
Borrowings increased from ZWL$161m to ZWL$284m as the microfinance bank managed to mobilise new lines of credit. However, customer deposits shrunk by 58% to close at ZWL$79.2m from ZWL$187m due to the general market’s reluctance to hold on to monetary assets considering the inflationary pressure and fear of real monetary loss due to currency depreciation.
The loan book grew from ZWL$132m to ZWL$179m as at December 31, 2021.
Total assets stood at ZWL$1bn, a 44% increase from ZWL$704m.
The microfinance bank’s net equity position was ZWL$474m translating to US$4.4m at the official exchange rate as at 31 December 2021. Deposit taking microfinanciers should have minimum capital of equivalent to US$5m.
The microfinance bank is working on a recapitalisation plan to ensure compliance with the regulatory minimum capital requirement extended deadline of Dece31 December 2022.
GetBucks said the raised capital will reduce its cost of funding, as well as capacitating the Microfinance Bank’s expansion drive.
In the outlook, GetBucks said investments in technology will continue to be the core focus of its strategy to deliver financial services.
