GetBucks slumps to ZW$20 mln loss in FY19

Harare, (New Ziana) – Listed financial institution,GetBucks Microfinance Bank slumped to a $20 million inflation adjusted loss for the year ending December 2019 from a $21 million profit in the comparable period in 2018.

Net interest income for the period was down to $20.7 million from $64.4 million as the bank saw borrowings slump 40 percent.

“Borrowings reduced from $78 million to $47 million reflecting real
reduction in funds available for deployment into the loan book,”
chairman, Rungamo Mbire said.

“The 40 percent reduction is reflected in adverse movement in bottom line as the income statement moved from a $21 million profit in prior year to a $20 million loss in current year.”

The institution changed its financial year end during the period.

“The year-end change means that these six months results are the financial statements for the year 2019 and December 31 is now the year
end henceforth” Mbire said.

The bank, which on a historical basis saw its net profit jump to $18.7
million from $11.3 million, opted not to declare a dividend citing the
need to retain and grow its capital.

GetBucks saw customer deposits grow 40 percent to $12.7 million from
$9.1 million.

“Total assets reduced by 36 percent to $132 million (PY: ZWL$205
million) with the biggest source of reduction being loans and advances
to customers which saw a 68 percent reduction,” Mbire said.

Operating expenses were down 54 percent as a result of the shorter
financial period.

Mbire said the bank, which does not have any foreign currency
exposure, was in negotiations for “material funding lines” which were
at an advanced stage.

“The bank is actively pursuing strategies to ensure compliance with
the USD5 million new minimum capital requirements effective December
31, 2020,” Mbire said.

At the end of the period, the bank’s net equity position stood at $58.2 million.
New Ziana