GETBUCKS Microfinance Bank Limited (GMBL) remains optimistic the central bank Monetary Policy Committee (MPC) will stabilise the forex market which has affected the bank’s business.
BY TATIRA ZWINOIRA
The MPC was established under the Reserve Bank of Zimbabwe to find ways to stabilise the currency that is again coming under severe pressure from inflation that reached 440% in October.
In GMBL’s first quarter update for the period ended September 30, 2019 the bank reported that its bureau de change that received a licence to operate in July 2019 was affected by the regulatory environment.
“During the period under review the bank’s performance exceeded forecast. However, the bureau de change business was affected at the end of September by changes in the regulatory environment,” said GMBL chief finance officer, Patrick Mashinga, in a statement accompanying the bank’s results for the period under review.
“The Bank is optimistic that the central bank Monetary Policy Committee interventions will stabilise the foreign exchange market resulting in an increase in the contribution of the bureau business to the bank’s overall profitability.”
As a result of the weak foreign exchange market, GMBL adopted a value preservation strategy in the period under review. Investment property acquired in prior year continued to yield results as fair value gains contributed $17,4 million to the bottom line.
As such, with a fully functional banking platform, the bank continued to focus on growth of its customer base that has seen the bank increase leverage and grow its loan book thus creating a base to offer retail services.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
“Total assets increased by 63% to $112,7 million from $69,3 million in June 2019 on the back of investments in financial assets, increase in cash and cash equivalents, and revaluation of investment property,” Mashinga said.
“Shareholders’ equity increased by 53% to $52,2 million with the uplift primarily driven by revaluation gains in investment property and profitability. A rights issue was concluded successfully in July 2019, raising an additional $5m equity.”
Mashinga said the bank would be looking to increase lending to the productive sector as well as increase its depositor base by utilising innovative technology platforms.
“Foreign currency demand continued to be higher than supply and this led to significant difficulties in the importation of goods and services. The hyperinflationary environment significantly increased the cost of doing business with particular pressure on wages. The bank will continue to explore opportunities to preserve value in the tough economic environment,” he said.
