GetBucks reports 58pc drop in deposits

LISTED micro-financier, GetBucks Limited, says its customer deposits shrunk by 58 percent to close at ZWL$79,2 million from ZWL$187 million attributed to the general market reluctance to hold on to monetary assets.

The micro-financier is working on a recapitalisation plan aimed at raising funds to meet the regulatory minimum capital requirement of US$5 million set by the Reserve Bank of Zimbabwe.

Reserve Bank of Zimbabwe.
GetBucks is a deposit taking micro-financing institution, which operates several branches across the country.

According to the central bank thresholds, Tier 3 deposit-taking micro-finance banks are required to have US$5 million minimum capital while Tier 1 banks, large indigenous commercial banks and all foreign banks are required to have US$30 million minimum capital.

Tier 2 commercial banks, merchants banks, building societies, development banks, finance and discount houses are required to have a minimum capital of US$20 million.

In its consolidated financial statements for the year ended 31 December 2021, chairman, Mr Rungamo Mbire, said funds raised will capacitate the micro-finance bank’s expansion drive.

To preserve shareholder value, Mr Mbire said they will continue to implement capital preservation initiatives.

“The Microfinance Bank is carrying out a rights issue as part of its capital raise initiative.

The capital raised will help the Microfinance Bank address the regulatory minimum capital requirement of USD5 million equivalent,” he said.

“The raised capital will reduce the Microfinance Bank’s cost of funding, as well as capacitating the Microfinance Bank’s expansion drive,” said Mr Mbire.

Investments in technology will continue to be the core focus of the GetBuck’s strategy to deliver financial services, added Mr Mbire.

On revenue, he said there was 206 percent increase to ZWL$588 million compared to ZWL$192 million for the comparable period.

The institution’s total comprehensive income for the year increased by 366 percent to ZWL$191 million compared to a loss of ZWL$72 million for the previous year.

On the headline earnings per share, there was an increase of 445 percent to a headline of 17,93 cents per share compared to the headline loss per share of 5,19 cents for the comparative period.

Earnings per share increased by 367 percent to 16,5 cents per share compared to the loss per share of 6,19 cents per share for the corresponding year and net assets increased by 68 percent to ZWL$474 million compared to ZWL$282 million for the comparative period.

Mr Mbire said inflationary pressures and fear of real monetary loss due to currency depreciation saw its customer deposits dropping by 58 percent to close at ZWL$79,2 million from ZWL$187 million.

But the loan book grew from ZWL$132 million in 2020 to close at ZWL$179 million in No dividend has been declared. – The Chronicle