FINANCIAL service provider, GetBucks Microfinance Bank Limited, will soon roll out a new model that will see the bank serving customers through agents as it seeks to expand its footprint, board chairman Rungano Mbire has said.
“The bank is poised to roll out services through a low-cost agent model and take advantage of the opportunities arising from the liberalisation of the foreign exchange market,” Mbire said in a statement accompanying the bank’s financial statement for the year ended June 30.
The bank will also leverage on technology to deliver services and embed its products with various retailers and service providers. In its financial report for the year to June 30, 2019 published last week, the bank increased its top line to ZWL$26m from ZWL$12m recorded in the same period last year.
It also realised a 153% jump in the bottom line to ZWL$11.4m, from ZWL$4.5m last year due to higher fees and commissions on loans that rose to ZWL$7.5m compared to ZWL$4m in 2018. This resulted in increased loan sales and fair value gains on investment property of ZWL$8.5m, according to Mbire.
Interest margins declined due to increased cost of funding. However, GetBucks achieved higher fees and commissions to counter the decline. Impairment allowance rose to ZWL$1m during the period under review from ZWL190000, in the comparative period.
Operating expenses increased by 73%. Total assets doubled to ZWL$63m, from ZWL$31m last year on the back of an improved loan book of ZWL$37m compared to ZWL$22m in 2018.
The loan book increased due to a rise in borrowings to ZWL$24m from ZWL$11.6m in 2018 comparative. Investment property increased to ZWL$12.9m for the period under review compared to ZWL$500,000 in 2018. This was attributable again to the acquisition of property “as a hedge” to preserve value.
Over the period, the bank introduced some products to tap into new clients and generate new revenue streams, according to Mbire. These include the establishment in July 2019 of a bureau de change and new products.
The financials show that GetBucks is well capitalised with a net equity of ZWL$27.6m, way above the minimum regulatory threshold of ZWL$5m for micro-finance banks. Last year it’s capital position stood at ZWL$17m.
With a capital adequacy ratio of 67% against a minimum regulation of 15%, the bank is well positioned to continue its growth trajectory, Mbire said.
“The capital preservation strategy to purchase fixed property went according to plan and helped boost the bank’s results,” he added. Business Times