Innbucks Microbank surpasses capital requirements
INNBUCKS Microbank Limited reported a core capital position of US$10,47 million as of June 30, 2024, surpassing the minimum regulatory requirement of US$5 million.
The institution aims to focus on increasing customer activity, expanding its profitable lending portfolio, boosting domestic and international remittances, leveraging technology, and advancing structured finance solutions.
Innbucks is strategically positioning itself to enhance transactional revenue.
Operational since 2022, the microbank has achieved widespread market acceptance due to its convenience and extensive availability, enabling it to expand its reach across the country.
Its geographically dispersed credit agent model allows it to cater to the credit needs of individual customers and various economic sectors, driving notable growth in performance.
In its financial results for the year ended June 30, 2024, the microbank reported a ZWG53,97 million profit before tax.
Innbucks Microbank chairman, Mr Ralph Watungwa, attributed the strong performance to the continued growth of all product lines, including credit, wallet, structured finance and treasury.
“Capital and key audit matters: InnBucks’ core capital position closed at ZWG143,47 million as of June 30, 2024, translating to US$10,47 million, which is above the current minimum regulatory requirement of the ZWG equivalent of US$5 million,” he said.
Mr Watungwa noted that regulatory compliance was achieved through retained earnings for the year, despite a significant fair value loss adjustment on the microbank’s savings bond holdings.
“Innbucks Microbank will continue to maintain and explore opportunities to grow regulatory capital levels, including retaining a portion of its profits,” he added.
Innbucks Microbank CEO, Ms Daisy Ziyemba, emphasised the institution’s commitment to supporting marginalised sectors, the general public and corporate clients.
“Strategic partnerships will also remain a priority for the benefit of our customers and stakeholders. This will largely be achieved through mutually beneficial loyalty arrangements,” she said.
During the reporting period, Innbucks Microbank’s net interest income rose significantly to ZWG74,15 million, compared to ZWG6,04 million recorded during the 16 months to June 30, 2023.
This growth was driven by a deliberate focus on expanding both consumer and corporate lending.
Fees and commission income also increased to ZWG182,74 million, up from ZWG90,76 million in the previous period.
However, operating expenses followed a similar upward trajectory, growing from ZWG83,74 million to ZWG167,28 million. No dividend was declared for the period under review. -chronicle
