FINTECH microfinance institution, GetBucks says there are signs of confidence restoration as the bank has started receiving both local and diaspora deposits following the ushering in of a new dispensation.
BY FIDELITY MHLANGA
This comes after President Emmerson Mnangagwa has pledged to restore confidence in the economy by, among plethora of measures, stamping out corruption and encouraging savings in the financial services.
GetBucks managing director Mercy Murevesi told NewsDay on the side-lines of the company’s annual general meeting in Harare yesterday that depositors were banking money since the coming in of the new administration.
“We have started experiencing it now. In terms of investments I must say to date we have received close to $300 000 in terms of investments from people outside and starting to reinvest now.
“Between Monday and today (Wednesday) we have started to receive inquiries on our rates which is very positive. People are now banking and depositing money.
“I am sure we will start seeing even foreign investment coming through as Zimbabweans in the Diaspora even locals have started bringing their money,” she said.
Murevesi said there is going to be significant improvement in terms of the cash and forex situation in the country as cash which went out through externalisation will be back due to confidence in the new government.
During the first quarter ended September 30, the bank made a profit of $1,1 million.
Interest income has increased by 18,5% year on year to $2,1 million due to growth in loans and advances that also increased by 14% due to the introduction of new small and medium enterprise products such as asset finance, home equity and mortgage loans.
Cost to income ratio improved to 48% in 2017 from 55% in 2016 due to the bank’s focus on growing revenues and managing costs using technology.
In addition the bank registered a significant decrease in impairments and write offs in this quarter as a result of improved credit risk assessment methodologies and good collection techniques.
“The bank is running a quality loan book with an average provision rate of 4,4% with a non-performing ratio of below 5% and loan loss coverage of 80%,” Murevesi said.
The institution’s net capital base is pegged at $14 million against a minimum regulatory requirement of $5 million.