Categories: Stories

Getbucks profit falls by a third

Zimbabwe Stock Exchange (ZSE) listed Financial Services group, Getbucks saw its after tax profit in the half year period to 30 June 2016 declining by a third to $3 million compared to $4.562 million over same period last year, after incurring higher operating expenses.

The microfinance company was granted a Deposit Taking Microfinance Licence by the Reserve Bank of Zimbabwe.

Net interest income increased 23 percent to $11 million from $8.9 million in the prior period while operating expenses grew to $5.9 million from $2.6 million in 2015.

Chair Glovah Madzima, in a statement accompanying the financials, attributed the increase in operating costs to regulatory compliance with the requirements for deposit taking as well as the introduction of new products and technologies.

On the other hand, net interest income increased on revenues from more loans disbursed for the year.

“New revenue streams from the recently introduced banking services are expected to contribute to profitability in the coming financial year,” said Madzima.

During the period, loans and advances went up 19 percent to $13.8 million while customer deposits closed the year at $700 000 in the first six months of deposit taking.

Total assets grew 43 percent to $20 million from $14 million with 80 percent of assets being cash or interest bearing assets.

At the close of the year, the company was adequately capitalised with a net equity position of $10.419 million, more than double the required minimum threshold of $5 million.- The Source

(49 VIEWS)

This post was last modified on %s = human-readable time difference 8:33 pm

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024

The Zimbabwe Gold will regain its value if the government does this…

Economist Eddie Cross says the Zimbabwe Gold (ZiG) will regain its value if the government…

October 16, 2024

Is Harare the least democratic province in Zimbabwe?

Zimbabwe’s capital, Harare, which is a metropolitan province, is the least democratic province in the…

October 11, 2024

Zimbabweans against extension of presidential term in office

Nearly 80% of Zimbabweans are against the extension of the president’s term in office, according…

October 11, 2024

Zimbabwe government biggest loser when there is a discrepancy in the exchange rate

The government is the biggest loser when there is a discrepancy between the official exchange…

October 10, 2024