Pure Simango, Staff Writer 
GETBUCKS Microfinance Bank (Getbucks) is unlikely to meet the Reserve Bank of Zimbabwe’s US$5 million minimum capital requirement by year end.
This comes as the financial institution recorded inflation-adjusted regulatory capital of $192 million (US$2 million) during the quarter ended September 30, 2021.
“Shareholders will pursue equity transactions to bridge the gap between the minimum capital requirement and the current regulatory requirement. However, given the limited amount of time to December 2021, it is unlikely that the regulatory capital will be met, and the regulator has been approached with a request to extend the deadline,” Getbucks said in a recent trading update.
Getbucks recorded a decrease in profit after tax to $16,7 million during a three-month period from $28,9 million recorded in the prior comparative period due to a surge in inflation during the quarter.
The institution’s total income was $167 million, representing a 123 percent increase compared to the $75 million recorded in the same period in the prior year.
The microfinance institution’s loan book closed at $202 million during the review period compared to $69 million recorded in the prior quarter due to increased funding lines.
Getbucks said the effects of the Covid-19 pandemic began to lessen during the quarter, resulting in improved loan sales and the institution’s transactional volumes.
“However, the easing of lockdown measures increased business activity in the economy and with that, we began to see inflation going up because of the increased demand for foreign currency,” Getbucks said.
The microfinance bank said the local currency lost ground against the United States dollar in the informal market during the quarter, triggering an increase in the month-on-month inflation figures, which rose from 2,6 percent at the beginning of the quarter and ending at 4,7 percent in September.
The changes brought an end to relatively long periods of stability that had been enjoyed during the prior quarter.
On the outlook, the microfinance bank said exchange rate stability is proving to be a formidable challenge.
“Productivity must match money supply growth. With a forecast of another good agriculture season, hope is not lost. The institution will strategically look to increase its portfolio of foreign currency generating business leveraging on the authorised dealer licence,” Getbucks said.
newsdesk@fingaz.co.zw
