Harare, (New Ziana) – GetBucks Limited said on Wednesday its loss position for the year ended December 2020 widened 159 percent to $44.8 million on an inflation adjusted basis as the economy battled the triple effects of the Covid-19 pandemic, high inflation and foreign currency shortages.
In the comparable period, the Zimbabwe Stock Exchange listed financial institution recorded a $17.3 million loss.
Chairman, Dr Rungamo Mbire said the Covid-19 pandemic, which saw the economy being largely shut down during the period, presented a serious challenge for the firm.
“The market continued to suffer from inadequate foreign currency although this problem was partially addressed by the introduction of the foreign exchange auction trading system by the Reserve Bank of Zimbabwe,” Dr Mbire said.
“The hyper-inflationary environment significantly increased the cost of doing business with particular pressure being felt by employers in relation to staff wages.”
Annual inflation closed the year at 348.6 percent.
While revenue was up by a marginal 12 percent to $119 million, this was not enough to prop up its bottom line.
No dividend was declared for the period as the firm sought to boost its capital reserves, as the loss per share widened 158 percent to 3.85 cents.
Dr Mbire said performance deteriorated due to the fact that the firms’s main subsidiary, the microfinance bank, had its “assets being predominantly made up of monetary assets.”
“The microfinance bank recorded a net loss of $45 million representing a 159 percent decrease from prior year,” he said
Customer deposits were up 104 percent while the loan book was down to $82 million from $173 million last year.
The bank had a net equity position of $175.6 million, equivalent to US$2.1 million.
By the end of this year, microfinance banks are expected to have a minimum capital base equivalent to US$5 million