Getbucks half year net profit up 16%

Accountants gather accounting data and report it in a standard format of the trial balance, profit and loss accounts, balance sheet and cash flows

By Freeman Makopa

Micro-finance institution Get Bucks reported a 16 % increase in net profit to $3 million in the six months to December 30, 2018, driven by an increase in net income of $8,3 million from $6,4 million achieved in the prior year.

The company reported that borrowings increased from $11,5 million to $20,4 million. The funds were deployed into the loan book that grew by 52% from $21,6 million to $32,3 million.

Growth of the loan book was underpinned by growth in the productive small-and-medium enterprise loan segments and education loans.

Customer deposits increased to $8,6 million from $3,1 million in June last year. Total assets increased by 51% from $31 million to $47 million due to increased loan disbursements and investments in property.

Getbucks said it focused on funding agriculture, with successful outgrower programmes underway in different parts of the country.

“Costs grew by 30% though inflation was 42% due to cost containment measures implemented by management. However, rising costs remain a significant challenge for the bank,” the company said in a statement accompanying the results.

During the period under review, interest expenses increased by 137% as the bank increased borrowings owing to higher demand for lending from customers.

“The bank’s mobile and Internet banking platforms are ready for launch in the first quarter of the year and will boost revenues in the last half of the financial year. All these measures are expected to improve service levels for clients,” the statement further read.

“The launch of the mobile banking application with full functionality to enable transfers on RTGS [real time gross settlement] and transfer to mobile wallets will enhance the ability of our customers to access our services.”