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Sikhulekelani Moyo

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LISTED microfinance bank GetBucks recorded positive growth in total assets in the year ended 31 December 2022 spurred by the increase in its loan book.

In a statement accompanying the bank’s financial results for the period, chairman Dr Rungano Mbire said the microfinance bank was able to access United States dollar (USD) credit lines and extend these to its customer base.

“The microfinance bank grew its total assets by 19 percent, from $3,482 billion to $4,145 billion, the growth in the assets is mainly attributed to the increase in the loan book,” he said.

“The microfinance bank was able to access USD credit lines and extend these to its customer base. As of 31 December 2022, the microfinance bank had foreign currency-denominated commitments of $1,330 billion.”

Meanwhile, the bank said it recorded a profit before tax of $136,2 million representing a 186 percent increase from the prior year’s inflation-adjusted profit of $47,6 million.

“Operating expenses increased by 19 percent during the year under review from $1,372 billion in 2021 to $1,64 billion in 2022. The increase was lower than the average inflation for the year under review as the microfinance bank embarked on a cost-cutting drive while operating in an inflationary environment,” said Dr Mbire.

“Borrowings increased from $976 million to $1,404 billion as the microfinance bank managed to mobilise new lines of credit. Customer deposits increased 132 percent to close at $631 million from $272 million in 2021.”

The bank is now issuing loans in USD and deposits in this currency tend to stick a bit longer.

“There, however, still exists a general market’s reluctance to hold on to monetary assets especially in ZWL considering the inflationary pressure and fear of real monetary loss due to currency depreciation,” said Dr Mbire.

“The loan book increased by 147 percent, growing from $617 million in 2021 to close at $1,526 billion in 2022.”

-@SikhulekelaniM1