Getbucks H1 profit falls 33pct

Getbucks H1 profit falls 33pct

HARARE, September 30 (The Source) – Zimbabwe Stock Exchange (ZSE) listed Financial Services group, Getbucks saw its after tax profit in the half year period to 30 June 2016 declining by a third to $3 million compared to $4, 562 million over same period last year, after incurring higher operating expenses.

The microfinance company was granted a Deposit Taking Microfinance Licence by the Reserve Bank of Zimbabwe.

Net interest income increased 23 percent to $11 million from $8,9 million in the prior period while operating expenses grew to $5,9 million from $2,6 million in 2015.

Chair Glovah Madzima, in a statement accompanying the financials, attributed the increase in operating costs to regulatory compliance with the requirements for deposit taking as well as the introduction of new products and technologies.

On the other hand, net interest income increased on revenues from more loans disbursed for the year.

“New revenue streams from the recently introduced banking services are expected to contribute to profitability in the coming financial year,” said Madzima.

During the period, loans and advances went up 19 percent to $13,8 million while customer deposits closed the year at $700,000 in the first six months of deposit taking.

Total assets grew 43 percent to $20 million from $14 million with 80 percent of assets being cash or interest bearing assets.

At the close of the year, the company was adequately capitalised with a net equity position of $10,419 million, more than double the required minimum threshold of $5 million.