Staff Writer 
INNBUCKS MicroBank Limited (Innbucks) posted a significant growth in revenue from customers’ loan payments ― more than doubling its topline while fees and commissions income also fared positively during the year ended June 30, 2024.
In its delayed full year results, the group saw its interest income grow by an impressive 960 percent to ZiG96,4 million, historically, from ZiG6,1 million in the comparable period previous year.
“This was largely driven by the deliberate focus on growing both consumer and corporate lending. The Satfin Limited funding line played a key role towards this initiative,” InnBucks chief executive Daisy Zinyemba said in the financials.
Loans and advances to customers amounted to ZiG341,9 million compared to ZiG48,3 million the previous year, reflecting a strong performance in the lending activities.
Policy rates remained relatively high during the year as authorities managed inflation.
As of December 2024, Zimbabwe’s interest rate stood at 35 percent, ranking among the highest in the region. The central bank has decided to maintain this rate and continue its tight monetary policy stance into 2025.
Meanwhile, fees and commission income grew to ZiG182,74 million from ZiG90,76 million as deposits reached ZiG129,9 million from ZiG9,6 million previous year.
However operating expenses also doubled from ZiG83,74 million previously to ZiG167,28 million, resulting in profit before tax of ZiG53,97 million from ZiG18,87 million prior year.
“This performance was driven by the continued growth of business in all of the microbank’s product lines namely credit, wallet, structured finance and treasury,” Zinyemba said.
Going forward, the group said it will focus on increasing customer activity, growing a profitable lending book, driving domestic and international remittances, leveraging technology and driving structured finance.
“As part of its commitment to technological growth, the institution has introduced various innovations, including the KaOne wallet product, which charges customers US$1 for transactions over a month. Additionally, the integration with Zimswitch allows all Innbucks customers to engage in national switch transactions via Zipit,” Zinyemba said.
As at June 30, 2024 the finance institution’s core capital position stood at ZiG143,47 million translating into US$10,47 million which is above the minimum regulatory requirement of US$5 million.
“The regulatory compliance was achieved through the retained earnings for the year despite the huge fair value loss adjustment on the microbank’s savings bond holdings,” InnBucks chairman Ralph Watungwa said.
The group did not declare a dividend for the year.
newsdesk@fingaz.co.zw
