Getbucks Microfinance Bank Ltd (Getbucks) is looking at doubling its mortgage loan book from current level of US$3 million on the back of the new political developments.
By Melody Chikono
Getbucks introduced mortgages to low-income earners last year, with the loan attracting 18 % interest per annum payable in 10 years with 0% deposit.
Mortgage loans is also one of the products that have seen the bank increasing its interest income by 18,5% year-on-year to US$52,1 million in the quarter to September 2017 due to growth in loans and advances that also increased 14% coupled with other products such as asset and finance equity.
In terms of uptake, Getbucks managing director Mercy Muchando Murevesi told businessdigest on the sidelines of the company’s annual general meeting that it was impressive given the current economic situation.
“We have a quality book and in terms of performance people are paying. The demand is there and now that we have the new dispensation I see a lot of growth in that area. A lot of people were out of employment but now if you heard the address on the president, he emphasised on jobs , so I see a light in that area” she said.
She added that the mortgage NPL ratio is below 1 percent which she said is very impressive
“Right now we are on about US$3 million, we will more than double in the coming year and in the coming year but in 4 or 5 years will be competing well with other well-established building societies in the country.
In the first quarter ending September 2017, the bank’s profit after tax increased to US$1,1 million comparable to US$677 000 same period last year while the cost-to-income ratio improved 48% in 2017 compared to 55% in 2016 .
The improvement was on the back of the bank’s focus on growing revenue and managing costs using technology.
Meanwhile, Murevesi said while Getbucks is banking on the majority of the civil service, it was broadening its attention to the non-banked populace by introducing nano loans which will make use of social media.
“We have introduced Haraka Nano loans where you apply online using Facebook or WhatsApp and we can actually issue out loans. We are targeting everyone in line with financial inclusion. One can also payback using E-wallets,” she said.
While the programme is still being marketed, Murevesi said significant growth was expected as it has worked in other countries like Kenya.