GETBUCKS MicroFinance Bank Limited (GMBL) says its loan book for the year ended June 30, 2019 increased to $7,5 million in the period under review from $4m in the previous year.
BY TAFADZWA MHLANGA
“The period has seen a rise in the rate of inflation which has put pressure on the cost of business. The bank responded by rolling out a low-cost business model ensuring that technology is used to service consumer requirements,” Getbucks chairman Rungamo Mbire said.
The bank posted a profit-after-tax of $11,4m, up from the 2018 comparative of $4,5m.
This growth was driven by the higher fees and commissions on loans of $7,5m from a 2018 comparative of $4m. This was due to increased loan sales and fair value gains on investment property of $8,5m.
Mbire said operating expenses increased by 73% in view of an operating environment where year-on-year inflation had been reported to be in excess of 176% in June 2019. Total assets grew by over 100% to $63m in the 2019 period, from $31m in 2018.
Driving the growth in assets was an increased loan book to $37m during the period under review from $22m in the 2018 period.
Cash and cash equivalence rose to $8m in the period, while deposits grew marginally to $2,8m from a 2018 comparative of $3m and $1,9m, respectively.