Chairman's Statement
Introduction
I hereby present the condensed interim nancial statement for Getbucks Micronance Bank Limited ("the Micronance Bank") for the six months ended 30 June 2022. The economy continued to be aected by the global supply chain challenges as well as signicant policy changes. Despite these challenges, the Micronance Bank continued to show resilience in its operations
Macro-economic environment
The global economy continued to reel from the global tensions which saw the domestic economy suering from spill-over eects of supply chain disruptions and global ination. This coupled with the poor 2021/2022 agricultural season and depreciating local currency compounded the local inationary pressures.
The half year has been characterised by business activity growth both locally and globally as economies try to recover from the Covid-19 pandem- ic. The sustained reduction in new covid cases has seen the disappearance of travel restrictions and lock downs with the world gravitating towards a "business as usual" approach. Travel and tourism growth has been registered across the globe.
Annual ination closed o at 191.6% in June 2022, up from 60.7% in December 2021. This was largely due to the 237% devaluation of the Zimba- bwean dollar (ZWL) against the United States of America's dollar (US$) at the ocial foreign exchange auction market with the ocial exchange rate closing the period at ZWL366.27, from ZWL108.67 on 31 December 2021.
The Reserve Bank of Zimbabwe's tight monetary policy framework continued with the aim of restoring condence in the local currency and promoting its usage. The measures included the hiking of interest rates to stem speculative borrowing.
Operational Results
The Micronance Bank had an ination adjusted loss after tax of ZWL44 million, from a ZWL62 million loss registered in June 2021. The loss was on the back of depressed lending due to the low disposable incomes aecting the civil servants' loan aordability and the fact that the depreciation of the ZW meant that the loan size had signicantly reduced in real terms. The Micronance Bank's non-lending revenue grew in line with the strategic vision of diversifying the top line.
The ination adjusted total Assets grew by 13% to close o at ZWL2,5 billion in June 2022 from ZWL2,2 billion as at December 2021 on the back of a diversied asset portfolio denominated in foreign currency. This was in line with the value preservation strategy adopted by the Micronance Bank to combat the value eroding eects of ination.
Ination adjusted deposits declined by 7% from the December 2021 position of ZWL173 million to close o at ZWL160 million as at 30 June 2022. This is reective of the liquidity challenges experienced in the market and also the reluctance of clients holding on to balances towards the RBZ auction due to settlement delays.
Capital
The Micronance Bank's core capital position closed o at ZWL332 million as at June 2022 translating to USD1 million at the foreign currency auction rate, which is below the current minimum regulatory requirement of ZWL equivalent to US$5 million. The Micronance Bank is in the process of nalizing a capital raise exercise which when complete will see the Micronance Bank compliant with the minimum capital requirements.
Dividend
No dividend has been declared for the period under review as the Micronance Bank seeks to increase its capital.
Outlook
The Board expects the operating environment to remain tight in the short to medium term; however, the Micronance Bank has attained new lines of credit and has since started issuing USD loans which will improve protability.
Investment in technology will continue to be the core focus of the Micronance Bank's strategy to deliver nancial service as the Micronance Bank seeks to grow its transactional revenue.
Appreciation
I would like to thank all our valued clients and stakeholders for their continued support to Bank. I am grateful to my fellow directors, management and sta for their hard work and believe we will soldier through the challenges and grow the business.
I would like to advise our stakeholders of the resignation of Mr. Patrick Matute as a Non-Executive Director of the Micronance Bank with eect from 31 July 2022, and thank Mr. Matute for his exceptional contribution to the Bank during his time as a Director. On behalf of all the Directors, I wish Mr. Matute only the best in his future endeavours.
DR. R. MBIRE
CHAIRMAN
DATE: 24 September 2022
Managing Director's Statement
It gives me great pleasure to present to you the Getbucks Micronance Bank's nancial performance for the period ended 30 June 2022.
Overview
The operating environment has been tough for businesses with ZWL liquidity being largely constrained throughout the period. This has resulted in a signicant shift that has seen businesses gravitating towards foreign currency denominated transactions.
Value preservation continued to be a challenge in the inationary environment. The Micronance's strategic focus has been to preserve capital by holding a balanced asset portfolio that allows the bank to meet its short-term strategies whilst hedging against the value eroding inationary pressures.
The unstable exchange rate regime and hyperination continue to be key areas of concern.
Business Performance
The Bank's total income over the six months to June 2022, at ZWL746million increased by 100% from the total income earned in the corresponding period of 2021 which was ZWL372million. This was largely due to the underlying eects of exchange rate movements as the Micronance Bank kept a number of USD of denominated assets.
Operating expenses increased by 41% from ZWL398million in the rst half of 2021 to ZWL562million in the period under review. Eciency however improved as the Micronance Bank had cost to income ratio of 75% in the current period against the 107% attained in the corresponding period of 2021.
The ination adjusted deposits at ZWL160million are 7% lower than prior year comparative period deposits of ZWL173million. This is in line with
the ZWL liquidity constraints experienced in the market coupled by the RBZ Auction settlement delays which saw some depositors withdrawing their transitory deposits.
The Micronance Bank posted a prot of ZWL440million up from a loss of 38million attained in half year of 2021. The result was on the back of other comprehensive income of ZWL484million from revaluation credits from the oce buildings revaluation exercise.
Our Products and Service Commitments
The Micronance Bank remains committed to providing innovative products and services and has implemented enhancements on the internet banking platform to improve customer services. The Bank has partnered with several key stakeholders to ensure that the needs of the diversied clientele base are met.
Outlook
The liquidity challenges coupled with the increase in the minimum lending rates will see most businesses shifting their operations from local currency to foreign denominated currencies. The Micronance Bank has positioned itself in a manner that ensures business continuity in this regard. The completion of the capital raise exercise will build the Micronance Bank's expansion drive.
Appreciation
My heartfelt appreciation goes out to all our valued stakeholders and customers who have shown unwavering support to Getbucks Micronance Bank. I am very grateful to my fellow directors for the steering arms that held strong during the half year and I am equally grateful to the Micro- nance Bank's employees for their resilience and dedication. Thank you all.
Edwin Chavora
MANAGING DIRECTOR
DATE: 24 September 2022
Reviewer's Statement
These condensed financial statements for the six months ended 30 June 2022 have been reviewed by Grant Thornton Chartered Accountants (Zimbabwe) in accordance with International Standards on Review Engagements (ISREs). The auditors have issued a qualied review conclusion on the condensed interim financial statements with respect to non-compliance with International Accounting Standard (IAS) 21 - The Eect of Changes in Foreign Exchange Rates on accounting for comparatives and transactions for the period.
The Reviewer's report on the condensed interim financial statements which form the basis of these financial results is available for inspection at the Micronance Bank's registered office.
The partner on the review resulting in the auditor's report is Mr. Edmore Chimhowa (PAAB Number 0470).
REVIEWED STATEMENT OF FINANCIAL POSITION | ||||||
AS AT 30 JUNE 2022 | ||||||
INFLATION | ADJUSTED | HISTORICAL COST | ||||
Reviewed | Audited | Reviewed | Audited | |||
ASSETS | Notes | Jun 2022 | Dec 2021 | Jun 2022 | Dec 2021 | |
ZWL | ZWL | ZWL | ZWL | |||
Cash and cash equivalents | 3 | 237 523 769 | 453 341 961 | 237 523 769 | 207 083 544 | |
Loans and advances to customers | 4 | 376 203 165 | 393 053 707 | 376 203 165 | 179 544 277 | |
Other assets | 5 | 130 110 209 | 104 658 917 | 87 438 771 | 38 151 136 | |
Tax receivable | 31 211 868 | 12 644 078 | 31 211 868 | 1 122 554 | ||
Investment properties | 6 | 625 650 000 | 303 069 282 | 625 650 000 | 138 440 000 | |
Right of use asset | 7 | 19 098 164 | 19 323 775 | 329 089 | 445 185 | |
Intangible assets | 11 778 555 | 12 122 524 | 593 309 | 804 850 | ||
Property and equipment | 8 | 1 061 124 526 | 915 225 086 | 968 146 743 | 322 979 205 | |
Total assets | 2 492 700 256 | 2 213 439 330 | 2 327 096 714 | 888 570 751 | ||
EQUITY AND LIABILITIES | ||||||
EQUITY ATTRIBUTABLE TO OWNERS OF The | ||||||
Micronance Bank | ||||||
Share capital | 9 | 16 117 | 16 117 | 116 | 116 | |
Share premium | 944 846 078 | 944 846 078 | 8 562 235 | 8 562 235 | ||
Revaluation reserve | 841 181 269 | 356 217 729 | 643 890 912 | 158 927 372 | ||
(Accumulated losses)/Retained earnings | (307 126 607) | (262 767 819) | 501 002 533 | 227 661 885 | ||
Total equity | 1 478 916 857 | 1 038 312 105 | 1 153 455 796 | 395 151 608 | ||
LIABILITIES | ||||||
Other nancial liabilities | 10 | 93 927 155 | 227 325 145 | 93 927 155 | 103 840 590 | |
Deposits from customers | 11 | 160 970 665 | 173 481 413 | 160 970 665 | 79 245 137 | |
Deferred tax liabilities | 174 738 191 | 152 675 321 | 334 595 710 | 26 370 023 | ||
Borrowings | 12 | 584 147 388 | 621 645 346 | 584 147 388 | 283 963 393 | |
Total liabilities | 1 013 783 399 | 1 175 127 225 | 1 173 640 918 | 493 419 143 | ||
Total equity and liabilities | 2 492 700 256 | 2 213 439 330 | 2 327 096 714 | 888 570 751 | ||
The above statements of nancial position should be read in conjunction with accompanying notes. The condensed interim nancial statements were approved by the Board of Directors and are signed on its behalf by:
DR. R. MBIRE | EDWIN CHAVORA |
CHAIRMAN | MANAGING DIRECTOR |
DATE: 24 September 2022 | DATE: 24 September 2022 |
REVIEWED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | ||||||
FOR THE SIX MONTHS ENDED 30 JUNE 2022 | ||||||
INFLATION ADJUSTED | HISTORICAL COST | |||||
Notes | Jun 2022 | Jun 2021 | Jun 2022 | Jun 2021 | ||
ZWL | ZWL | ZWL | ZWL | |||
Interest income | 13 | 359 422 496 | 473 362 716 | 222 846 440 | 151 052 463 | |
Interest expense | 14 | (189 121 935) | (180 210 779) | (119 830 720) | (58 243 118) | |
Net interest income | 170 300 561 | 293 151 937 | 103 015 720 | 92 809 345 | ||
Fee and commission income | 130 578 936 | 101 574 315 | 80 870 270 | 33 116 860 | ||
Other Income | 50 066 119 | 1 625 399 | 36 770 048 | 516 157 | ||
Gain on foreign exchange | 103 665 076 | 3 069 860 | 81 676 445 | 973 919 | ||
Fair value adjustments | 291 429 712 | (26 587 352) | 458 121 240 | 830 000 | ||
Total net income | 746 040 404 | 372 834 159 | 760 453 723 | 128 246 281 | ||
Impairment and allowances | (12 287 357) | (8 779 561) | (3 156 279) | (2 742 411) | ||
Operating expenses | 15 | (562 559 359) | (398 411 656) | (365 125 799) | (119 618 690) | |
Net monetary loss | (98 621 992) | (40 144 270) | - | - | ||
REVIEWED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2022 (Continued)
HISTORICAL COST | |||||
FOR THE SIX MONTHS ENDED | Share | Share | Revaluation | Retained | Total |
Capital | Premium | reserve | earnings | equity | |
30 JUNE 2022 | |||||
ZWL | ZWL | ZWL | ZWL | ZWL | |
Prot for the period | - | - | - | 273 340 648 | 273 340 648 |
Total comprehensive income for the period | - | - | - | 273 340 648 | 273 340 648 |
Revaluation surplus | - | - | 484 963 540 | - | 484 963 540 |
Balance at 30 June 2022 | 116 | 8 562 235 | 643 890 912 | 501 002 533 | 1 153 455 796 |
REVIEWED STATEMENT OF CASH FLOWS
Prot/(Loss) before taxation
Income tax (expense)/credit
(Loss)/Prot for the year
Other comprehensive income
Gain on revaluation of property and equipment
Tax on revaluation of property and equipment
72 571 696 | (74 501 328) | 392 171 645 | 5 885 180 | |
16 | (116 930 484) | 12 720 357 | (118 830 997) | (2 745 017) |
(44 358 788) | (61 780 971) | 273 340 648 | 3 140 163 | |
644 212 992 | 31 074 443 | 644 212 992 | 10 232 624 | |
(159 249 452) | (7 681 602) | (159 249 452) | (2 529 505) |
FOR THE SIX MONTHS ENDED 30 JUNE 2022
INFLATION ADJUSTED | HISTORICAL COST | ||||
Cash ows from operating activities | Notes | Jun 2022 | Jun 2021 | Jun 2022 | Jun 2021 |
ZWL | ZWL | ZWL | ZWL | ||
Cash generated from operations | 17 | (1 095 621 085) | (736 458 539) | (577 846 226) | (226 689 208) |
Interest received | 357 245 114 | 341 045 117 | 234 651 140 | 109 227 693 | |
Interest paid | 182 436 528 | (181 854 351) | 119 830 720 | (58 243 118) | |
Income tax paid | - | - | - | - |
Total comprehensive income/(loss) for the | 440 604 752 | (38 388 130) | 758 304 188 | 10 843 282 |
period, net of tax | ||||
(Loss)/earnings per share (cents) | (3.81) | (5.31) | 23.50 | 0.27 |
Diluted (loss)/earnings per share (cents) | (3.81) | (5.31) | 23.50 | 0.27 |
The above statement of prot or loss and other comprehensive income should be read in conjunction with the accompanying notes.
REVIEWED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2022
Net cash ows utilised in operating activities
Cash ows from investing activities
Proceeds from disposal of equipment
Purchase of equipment
Proceeds from/(Payments for) nancial assets at amortised cost
Software development
(555 939 443) | (577 267 772) | (223 364 366) | (175 704 633) |
1 857 048 | 456 118 | 1 036 043 | 144 569 |
(46 105 662) | (12 146 914) | (37 282 891) | (3 890 334) |
38 384 276 | - | 25 212 140 | - |
- | (2 003 349) | - | ( 641 619) |
INFLATION ADJUSTED | |||||
FOR THE SIX MONTHS ENDED | Share | Share | Revaluation | Accumulated | Total |
Capital | Premium | reserve | Losses | equity | |
30 JUNE 2022 | |||||
ZWL | ZWL | ZWL | ZWL | ZWL | |
Balance at 1 January 2022 | 16 117 | 944 846 078 | - | (326 577 413) | 618 284 782 |
Prot for the year | - | - | - | 63 809 594 | 63 809 594 |
Total comprehensive income for the year | - | - | - | 63 809 594 | 63 809 594 |
Revaluation surplus | - | - | 356 217 729 | - | 356 217 729 |
Balance at 31 December 2021 | 16 117 | 944 846 078 | 356 217 729 | (262 767 819) | 1 038 312 105 |
Balance at 1 January 2022 | 16 117 | 944 846 078 | 356 217 729 | (262 767 819) | 1 038 312 105 |
Prot for the period | - | - | - | (44 358 788) | (44 358 788) |
Total comprehensive income for the period | - | - | - | (44 358 788) | (44 358 788) |
Revaluation surplus | - | - | 484 963 540 | - | 484 963 540 |
Balance at 30 June 2022 | 16 117 | 944 846 078 | 841 181 269 | (307 126 607) | 1 478 916 857 |
HISTORICAL COST | |||||
FOR THE SIX MONTHS ENDED | Share | Share | Revaluation | Retained | Total |
Capital | Premium | reserve | earnings | equity | |
30 JUNE 2022 | |||||
ZWL | ZWL | ZWL | ZWL | ZWL | |
Balance at 1 January 2021 | 116 | 8 562 235 | - | 120 639 726 | 129 202 077 |
Prot for the year | - | - | - | 107 022 159 | 107 022 159 |
Total comprehensive income for the year | - | - | - | 107 022 159 | 107 022 159 |
Revaluation surplus | - | - | 158 927 372 | - | 158 927 372 |
Balance at 31 December 2021 | 116 | 8 562 235 | 158 927 372 | 227 661 885 | 395 151 608 |
Balance at 1 January 2022 | 116 | 8 562 235 | 158 927 372 | 227 661 885 | 395 151 608 |
Additions to investment property | 6 | (31 151 006) | - | (29 088 760) | - |
(37 015 344) | (13 694 145) | (40 123 467) | (4 387 384) | ||
Cash ows from nancing activities | |||||
Proceeds from borrowings | 323 142 909 | 724 069 780 | 212 251 613 | 231 900 319 | |
Net cash ows generated from nancing | |||||
323 142 909 | 724 069 780 | 212 251 613 | 231 900 319 | ||
activities | |||||
Net (decrease)/increase in cash and cash | |||||
(269 811 878) | 133 107 863 | (51 236 220) | 51 808 302 | ||
equivalents | |||||
Cash and cash equivalents at the beginning | 453 341 961 | 525 159 013 | 207 083 544 | 149 243 059 | |
of the period | |||||
Net foreign exchange dierences on cash | 103 665 076 | 3 069 860 | 81 676 445 | 973 919 | |
and cash equivalents | |||||
Ination eect on cash and cash equivalents | (49 671 390) | (72 306 042) | - | - | |
Cash and cash equivalents at the end of | |||||
237 523 769 | 589 030 694 | 237 523 769 | 202 025 280 | ||
the period | |||||
The above statement of cash ows should be read in conjunction with accompanying notes.
NOTES TO THE REVIEWED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2022
-
GENERAL INFORMATION
GetBucks Micronance Bank Limited ("Getbucks" or "the Micronance Bank") is registered as a Deposit Taking Micronance Bank by the Reserve Bank of Zimbabwe, under the Micronance Act (Chapter 24:29), and is a subsidiary of GetBucks Limited (Mauritius) which holds 53.7%, (December 2021: 53.7%) of the Micronance Bank's ordinary shares. The Micronance Bank was listed on the Zimbabwe Stock Exchange on 15 January 2016 and obtained its deposit taking licence in the same month.
The Micronance Bank is a limited liability Company incorporated and domiciled in Zimbabwe. The Micronance Bank's business is conducted in Zimbabwe.
The address of its registered oce is 1st Floor, MIPF House, 5 Central Avenue, Harare, Zimbabwe. - ACCOUNTING CONVENTION Statement of compliance
These condensed interim nancial statements have been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting. Selected explanatory notes are included to explain events and transactions that are signicant to an understanding of the changes in nancial position of the Micronance Bank. These condensed interim nancial statements do not include all the information required for the full annual nancial statements prepared in accordance with International Financial Re- porting Standards. They should be read in conjunction with the Micronance Bank's audited nancial statements for the year ended 31 December 2021.
These condensed interim nancial statements were approved by the Board of Directors on 24 September 2022.
NOTES TO THE REVIEWED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2022 (Continued)
2.1 Basis of preparation
The condensed interim nancial statements including comparatives, have been prepared under the ination adjusted accounting basis to account for changes in the general purchasing power of the ZWL. The restatement is based on the Consumer Price Index at the statement of nancial position date. The Public Accountants and Auditors Board (PAAB) issued a pronouncement on 11 Octo- ber 2019 indicating the economy had become hyper-inationary. As such, the Directors have prepared the accompanying nancial statements using the hyperinationary accounting basis. The indices are derived from the monthly ination rates which are issued by the Zimbabwe National Statistics Agency (ZIMSTAT). As a result of the change in the Micronance Bank's functional currency on 22 February 2019. The indices used are shown below. These nancial statements are reported in Zimbabwean dollars and rounded to the nearest dollar.
Indices | Indices | Conversion factor |
31 December 2020 | 2 474.51 | 3.5188 |
30 June 2021 | 2 986.44 | 2.9156 |
31 December 2021 | 3 977.46 | 2.1892 |
30 June 2022 | 8 707.35 | 1.0000 |
The indices have been applied to the historical costs of transactions and balances as follows:
- All comparative gures for the periods ended 30 June 2021 and 31 December 2021 have been restated by applying the change in the index from the date of last re-measurement to 30 June 2022;
- Income statement transactions have been restated by applying the change in the index from the approximate date of the transactions to 30 June 2022;
- Gains and losses arising from the monetary assets or liability positions have been included in the statement of prot or loss;
- Non-monetaryassets and liabilities have been restated by applying the change in the index from the date of the transaction to 30 June 2022;
- Property and equipment and accumulated depreciation have been restated by applying the change in the index from the earlier of February 2009 and date of their purchase or re-assessment to 30 June 2022;
The net impact of applying the procedures above is shown in the statement of comprehensive income as the gain or loss on net monetary position. IAS 29 discourages the publication of historical results as a supplement to the ination adjusted results. However, historical results have been published to allow comparability of the results during the transitional phase in applying the Standard.
-
Functional and presentation currency
For the purpose of the condensed interim nancial statements, the results and nancial position of the Micronance Bank are ex- pressed in Zimbabwe Dollars (ZWL) which is the functional, and presentation currency for the condensed interim nancial statements. - New standards, amendments and interpretations, eective for accounting periods beginning on 1 January 2022 adopted by the Micronance Bank
There are no accounting pronouncements which have become eective from 1 January 2022 that have a signicant impact on the Micronance Bank's interim condensed interim nancial statements.
3. | CASH AND CASH EQUIVALENTS | ||||
INFLATION ADJUSTED | HISTORICAL COST | ||||
JUN 2022 | DEC 2021 | JUN 2022 | DEC 2021 | ||
ZWL | ZWL | ZWL | ZWL | ||
Cash and cash equivalents consist of: | |||||
Cash on hand | 50 577 951 | 30 572 628 | 50 577 951 | 13 965 370 | |
Balances with the Reserve Bank of | 100 025 199 | 75 110 579 | 100 025 199 | 34 310 005 | |
Zimbabwe | |||||
Bank balances | 86 920 619 | 347 658 754 | 86 920 619 | 158 808 169 | |
237 523 769 | 453 341 961 | 237 523 769 | 207 083 544 | ||
4. LOANS AND ADVANCES TO CUSTOMERS
4.1 Loans and advances maturities
INFLATION ADJUSTED | HISTORICAL COST | |||
JUN 2022 | DEC 2021 | JUN 2022 | DEC 2021 | |
ZWL | ZWL | ZWL | ZWL | |
Consumer loans | ||||
Maturing within 3 months | 66 474 958 | 118 499 032 | 66 474 958 | 54 129 557 |
Maturing within 3 - 12 months | 96 688 531 | 194 095 768 | 96 688 531 | 88 661 635 |
Maturing 1- 5 years | 6 475 146 | - | 6 475 146 | - |
Gross carrying amount | ||||
169 638 635 | 312 594 800 | 169 638 635 | 142 791 192 | |
Less credit impairment | (19 679 991) | (31 399 830) | (19 679 991) | (14 343 230) |
Net carrying amount | 149 958 644 | 281 194 970 | 149 958 644 | 128 447 962 |
SME loans | ||||
Maturing within 3 months | 113 720 119 | 82 478 072 | 113 720 119 | 37 675 426 |
Maturing within 3 - 12 months | 91 396 123 | 35 911 103 | 91 396 123 | 16 403 949 |
Maturing 1- 5 years | 21 607 994 | 3 413 319 | 21 607 994 | 1 559 181 |
Gross carrying amount | ||||
226 724 236 | 121 802 494 | 226 724 236 | 55 638 556 | |
Less credit impairment | (479 715) | (9 943 757) | (479 715) | (4 542 241) |
Net carrying amount | 226 244 521 | 111 858 737 | 226 244 521 | 51 096 315 |
Total net carrying amount | 376 203 165 | 393 053 707 | 376 203 165 | 179 544 277 |
- Irrevocable commitments
There are no irrevocable commitments to extend credit, which can expose The Micronance Bank to penalties or expense. - Sectorial analysis
INFLATION ADJUSTED | ||||
JUN 2022 | JUN 2022 | DEC 2021 | DEC 2021 | |
ZWL | % | ZWL | % | |
Consumer loans | 149 958 644 | 40% | 281 194 970 | 72% |
Small and Medium Enterprises ("SME") | 226 244 521 | 60% | 111 858 737 | 28% |
loans | ||||
376 203 165 | 100% | 393 053 707 | 100% | |
HISTORICAL COST | |||||||||||
JUN 2022 | JUN 2022 | DEC 2021 | DEC 2021 | ||||||||
ZWL | % | ZWL | % | ||||||||
Consumer loans | 149 958 644 | 40% | 128 447 962 | 72% | |||||||
Small and Medium Enterprises ("SME") | 226 244 521 | 60% | 51 096 315 | 28% | |||||||
loans | |||||||||||
376 203 165 | 100% | 179 544 277 | 100% | ||||||||
4.4 | Analysis of credit quality by sector | ||||||||||
INFLATION ADJUSTED | |||||||||||
Pass | Special | Sub- | Doubtful | Loss | Total | ||||||
mention | standard | ||||||||||
ZWL | ZWL | ZWL | ZWL | ||||||||
ZWL | ZWL | ||||||||||
As at 30 June 2022 | |||||||||||
Consumer loans | 132 206 746 | 6 388 426 | 3 706 425 | 3 835 087 | 23 501 951 | 169 638 635 | |||||
SME Loans | 182 437 141 | 23 459 327 | 76 038 | 56 856 | 20 694 874 | 226 724 236 | |||||
314 643 887 | 29 847 753 | 3 782 463 | 3 891 943 | 44 196 825 | 396 362 871 | ||||||
As at 31 December 2021 | |||||||||||
Consumer loans | 269 581 997 | 5 276 168 | 7 097 898 | 6 318 515 | 24 320 222 | 312 594 800 | |||||
SME loans | 75 432 138 | 12 707 994 | 3 539 188 | 24 799 993 | 5 323 181 | 121 802 494 | |||||
345 014 135 | 17 984 162 | 10 637 086 | 31 118 508 | 29 643 403 | 434 397 294 |
NOTES TO THE REVIEWED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2022 (Continued)
4.5 Exposure to credit risk
INFLATION ADJUSTED | HISTORICAL COST | ||||
JUN 2022 | DEC 2021 | JUN 2022 | DEC 2021 | ||
ZWL | ZWL | ZWL | ZWL | ||
Consumer loans at amortised cost | |||||
Individually impaired | |||||
Grade 8 - 10 | 31 043 463 | 37 736 635 | 31 043 463 | 17 237 840 | |
Grade 4 - 7 | 6 388 426 | 5 276 169 | 6 388 426 | 2 410 118 | |
Collectively impaired | |||||
Grade 1- 3 | 132 206 746 | 269 581 996 | 132 206 746 | 123 143 234 | |
Gross carrying amount | 169 638 635 | 312 594 800 | 169 638 635 | 142 791 192 | |
Less credit impairment allowance | (19 679 991) | (31 399 830) | (19 679 991) | (14 343 230) | |
Carrying amount | 149 958 644 | 281 194 970 | 149 958 644 | 128 447 962 | |
SME loans | |||||
Past due and impaired | |||||
Grade 8 - 10 | 20 827 768 | 33 662 362 | 20 827 768 | 15 376 739 | |
Grade 4 - 7 | 23 459 327 | 12 707 994 | 23 459 327 | 5 804 926 | |
Grade 1- 3 | 182 437 141 | 75 432 138 | 182 437 141 | 34 456 891 | |
Gross carrying amount | |||||
226 724 236 | 121 802 494 | 226 724 236 | 55 638 556 | ||
Less credit impairment allowance | (479 715) | (9 943 757) | ( 479 715) | (4 542 241) | |
Carrying amount | 226 244 521 | 111 858 737 | 226 244 521 | 51 096 315 | |
Gross carrying amount SME and Consumer | |||||
396 362 871 | 434 397 294 | 396 362 871 | 198 429 748 | ||
loans | |||||
- Measured at 12 month Expected Credit | |||||
337 811 642 | 331 879 531 | 337 811 642 | 151 600 327 | ||
losses | |||||
- Measured at lifetime Expected Credit | 58 551 229 | 102 517 763 | 58 551 229 | 46 829 421 | |
losses | |||||
Impairment | (20 159 706) | (41 343 587) | (20 159 706) | (18 885 471) | |
Net carrying amount | 376 203 165 | 393 053 707 | 376 203 165 | 179 544 277 |
The gross carrying amount of the loan book is disaggregated between stages 1 to 3 as below.
The IFRS 9 model uses a segmented approach where loans with clear and distinct risk characteristics are grouped separately. Loans are grouped by collection method as well as product type. Collection method implies that payroll loans are separated from non payroll loans as they behave dierently.
For expected credit loss provisions modelled on a collective basis, a grouping of exposure is performed on the basis of shared risk characteristics, such that risk exposures within a group are homogeneous. In performing this grouping, there must be sucient information for the group to be statistically credible.
The characteristics and any supplementary data used to determine groupings are outlined below:
Consumer loans - Groupings for collective measurement
- Collection method (i.e payroll based loans)
SME and mortgage loans - Groups for collective measurement
- Product type (i.e nance a purchase of immovable properties and order nancing)
- Collateral type
HISTORICAL COST | ||||
Stage 1 | Stage 2 | Stage 3 | Total | |
Consumer loans | 12-month ECL | Lifetime ECL | Lifetime ECL | |
ZWL | ||||
ZWL | ZWL | ZWL | ||
As at 31 December 2021 | ||||
Outstanding balance as at | 45 058 821 | 5 673 717 | 1 227 700 | 51 960 238 |
1 January 2021 | ||||
Financial assets derecognised | ||||
during the period other than write | (41 738 028) | (6 369 787) | (329 789) | (48 437 604) |
os | ||||
Transfers: | ||||
Transfers from stage 1 to stage 2 | (839 629) | 839 629 | - | - |
Transfers from stage 2 to stage 1 | 30 608 | (30 608) | - | - |
Transfers from stage 1 to stage 3 | (1 154 809) | - | 1 154 809 | - |
Transfers from stage 2 to stage 3 | - | (371 243) | 371 243 | - |
New nancial assets originated | 100 063 087 | 25 653 473 | 14 394 755 | 140 111 315 |
Write os | (712) | (210 793) | (631 252) | ( 842 757) |
Outstanding balance as at 31 | ||||
101 419 338 | 25 184 388 | 16 187 466 | 142 791 192 | |
December 2021 | ||||
4.5 Exposure to credit risk (Continued)
HISTORICAL COST | ||||
Stage 1 | Stage 2 | Stage 3 | Total | |
12-month ECL | Lifetime ECL | Lifetime ECL | ||
ZWL | ||||
ZWL | ZWL | ZWL | ||
As at 30 June 2022 | ||||
Outstanding balance as at | 101 419 338 | 25 184 388 | 16 187 466 | 142 791 192 |
1 January 2022 | ||||
Financial assets derecognised | ||||
during the period other than write | (73 608 366) | (15 595 929) | (338 540) | (89 542 835) |
os | ||||
Transfers: | ||||
Transfers from stage 1 to stage 2 | (3 313 603) | 3 313 603 | - | - |
Transfers from stage 2 to stage 1 | 829 708 | (829 708) | - | - |
Transfers from stage 1 to stage 3 | (2 800 721) | - | 2 800 721 | - |
Transfers from stage 2 to stage 3 | - | (7 458 915) | 7 458 915 | - |
New nancial assets originated | 106 253 347 | 9 559 766 | 2 374 718 | 118 187 831 |
Write os | 1 777 | - | (1 799 330) | (1 797 553) |
Outstanding balance as at | ||||
128 781 480 | 14 173 206 | 26 683 950 | 169 638 635 | |
30 June 2022 | ||||
HISTORICAL COST | ||||
SME loans at amortised cost | Stage 1 | Stage 2 | Stage 3 | Total |
12-month ECL | Lifetime ECL | Lifetime ECL | ||
ZWL | ||||
ZWL | ZWL | ZWL | ||
As at 31 December 2021 | ||||
Outstanding balance as at | 36 787 750 | (4 123 269) | 1 606 862 | 34 271 343 |
1 January 2021 | ||||
Monetary adjustment | ||||
Financial assets derecognised | ||||
during the period other than write | (25 131 681) | (2 427 448) | (1 656 747) | (29 215 876) |
os | ||||
Transfers: | - | |||
Transfers from stage 1 to stage 2 | (720 510) | 720 510 | - | - |
Transfers from stage 2 to stage 1 | 139 135 | (139 135) | - | - |
Transfers from stage 1 to stage 3 | (356 678) | - | 356 678 | - |
Transfers from stage 2 to stage 3 | - | (512 375) | 512 375 | - |
New nancial assets originated | 25 002 180 | 12 757 316 | 12 823 593 | 50 583 089 |
Outstanding balance as at | ||||
35 720 196 | 6 275 599 | 13 642 761 | 55 638 556 | |
31 December 2021 | ||||
HISTORICAL COST | ||||
SME loans at amortised cost | Stage 1 | Stage 2 | Stage 3 | Total |
12-month ECL | Lifetime ECL | Lifetime ECL | ||
ZWL | ||||
ZWL | ZWL | ZWL | ||
As at 30 June 2022 | ||||
Outstanding balance as at | 35 720 196 | 6 275 599 | 13 642 761 | 55 638 556 |
1 January 2021 | ||||
Financial assets derecognised | ||||
during the period other than write | (9 859 453) | (5 121 169) | (12 107 938) | (27 088 560) |
os | ||||
Transfers: | - | |||
Transfers from stage 1 to stage 2 | (11 593) | 11 593 | - | - |
Transfers from stage 2 to stage 1 | - | - | - | - |
Transfers from stage 1 to stage 3 | - | - | - | - |
Transfers from stage 2 to stage 3 | - | (717 384) | 717 384 | - |
New nancial assets originated | 181 762 982 | 16 397 669 | 13 589 | 198 174 240 |
Outstanding balance as at | ||||
207 612 132 | 16 846 308 | 2 265 796 | 226 724 236 | |
30 June 2022 | ||||
Amounts disclosed above as past due and impaired are the total amounts with a loan class where a portion of the loans and advances are considered impaired.
Not all past due amounts have been fully provided as there is a history of repayment in those classes that has been considered in determining possible impairment.
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GetBucks Ltd. published this content on 03 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 October 2022 21:09:10 UTC.