GetBucks profit up 16 percent

GETBUCKS Microfinance Bank (Getbucks) recorded a 16 percent increase in profit to $3 million for the six months ended December 31, 2018 compared to a $2,578 million recorded in prior period.
Rungano Mbire, the microfinance institution’s chairperson, said higher revenues are expected from loans driven by a larger loan book.

“This result was achieved through increased net income of $8,3 million from $6,4 million in the prior year. “Interest expense increased by 137 percent as the bank increased borrowings in response to higher demand for lending from customers,” he said.Borrowings increased to $20,4 million during the review period compared to a $11,5 million recorded in prior comparable period.

Mbire said the company’s loan book grew by 52 percent to $32,3 million from $21,6 million recorded in previous period attributed to growth in the productive small-to-medium enterprise (SME) loan segments and education loans. However, impairment charges rose from $0,1 million to $0,3 million giving a non-performing loan ratio of six percent.

“Cost grew by 30 percent even though inflation was 42 percent due to cost containment measures implemented by management,” Mbire said. In the period under review customer deposits went up to $8,6 million from $3,1 million in previous comparable period.
Assets went up 51 percent to $47,001 million during the review period to $31,423 million in comparable period.

GetBucks had a net equity position of $19,67 million as at December 31, 2018, which is above the minimum regulatory threshold.
“The company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business,” GetBucks said.

GetBucks said management is still assessing the impact of central bank governor’s announcement of the introduction of an electronic currency. The funder said further price increases are expected in the country. GetBucks declared a 0,054 cents dividend per share.

    Comments (1)

    Editors should now insist that stories are reported in USD or mabondi money - readers need to know these minor things you would think comrades !

    ace mukadota - 3 March 2019

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