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Saturday, December 3, 2022
HomeBusinessGetbucks US$ 5 Million Capitalization Talks Still On-Going

Getbucks US$ 5 Million Capitalization Talks Still On-Going

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Getbucks Financial Services says negotiations for a US$ 5 million capitalization deal are still ongoing as the institution aims to meet the minimum capital threshold deadline set for 31, December 2022 deadline.

The financial institution waived the interim dividend for its Half Year period as it sought to raise the US$ 5 million minimum threshold for Tier 3 deposit-taking microfinance banks as set by the reserve Bank of Zimbabwe.

“Further to the cautionary announcement dated 8 February 2022, shareholders are advised that negotiations for a capitalization are still in progress. The full impact of which is still being determined and if successfully concluded, may have a materials effect on the price of the company’s securities,” the company said.

The Bank improved its HY22 results reflecting a turnaround in the institution with increases in total income brought by a rise in the loan book as new funding lines were concluded.

Borrowings increased by 175 percent from ZW$ 121 million to ZW$332 million due to new funding received from a local financial institution for working capital.

These funds were deployed into the loan book which in turn grew by 95 percent from ZW$ 99 million to ZW$ 193 million. Consequently, interest income increased by 212 percent from ZW$52 million in 2020 to ZW$162 million in 2021.

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The Microfinance Bank focused on its digital offering through improvement of its mobile banking platform in order to increase its outreach. The Microfinance Bank launched its new Secure Pay application with enhanced offerings, stability and transaction options

 

 

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