HARARE, November 29 (The Source) – Microﬁnance bank, Getbucks reported a 66 percent growth in profit after tax to $1,1 in the first quarter to September 30, driven by soaring revenue.
Interest income rose by 18,5 percent to $2,1 million on year on year due to growth in loans and advances which were 14 percent up to $19,6 million.
“Cost to income ratio improved to 48 percent in 2017 from 55 percent in 2016 due to the bank’s focus on growing revenues and managing costs using technology,” managing director Mercy Murevesi told stakeholders at an annual general meeting on Wednesday.
She added that the bank is certified to issue debit cards that will operate on ZimSwitch and Zipit platforms
In the period under review, the bank’s Non-Performing Loans ratio was below five percent with a loan loss coverage ratio of 80 percent.
“There was a significant decrease in impairments and write-offs in this quarter which was due to improved credit risk assessment methodologies and good collection techniques,” said Murevesi.
Getbucks has a $14 million net capital base against a regulatory minimum of $5 million.
Equity was 29 percent up compared to the same period in the prior year.
Getbucks launched a $30 million bond program in April and the first $5,4 million tranche was fully subscribed while the second tranche is still open for investors.
Total assets stood at $24 million compared to $21 million in the comparable period.