Getbucks interest income up 26pc

Business Editor

GETBUCKS Financial Services reported a 26 percent increase in interest income in the six months to December at $3,3 million from $2,81 million in the same period in 2014 but a spike in operating expenses saw profitability drop to $1,99 million from $2,13 million. In its maiden public results statement, the group said operating expenses in the interim period grew to $2,4 million from $1,1 million due to necessary staff increases and increased information technology support and development for the deposit taking licence. Some of the expenses are, however, once-off.

Net interest income was at $2,8 million (2014: $2,21 million) while fees and commission income grew to $2,48 million from $1,84 million in the comparable year ago period resulting in net income of $5,2 million.

The pre-tax line came in at $2,6 million and earnings were 0,19c per share. The group declared a dividend of $0,0457c per share (or $500 000).

GetBucks gave the Zimbabwe Stock Exchange its first IPO listing since 2008 after raising $3,2 million.

However, the group said no adjustments had been made to the financial statement. “The new capital has not yet reflected as these are considered non-adjusting post balance sheet events,” said the group.

The results are still to include deposits as the group only got a licence in January.

On the balance sheet, total assets grew 15 percent to $15,8 million with the group saying 80 percent of the assets of are interest bearing.

The loan book was maintained just above $11 million although it dropped from $11,6 million reflective of the short-term nature of book. The group had also reduced their loan tenures and was more aggressive in collections resulting in an increase in the interest income. Impairment allowances were $408 103, a decrease from $446 186.

The group said it would soon be expanding its product offering to ensure the provision of deposit taking facilities to the Small to Medium Enterprise sector.

The group said it was adequately capitalised with net equity of $7 million prior the IPO, a figure which is above the minimum regulatory threshold of $5 million.