INNBUCKS MicroBank Limited has recorded a 13,5% decline in profit after tax to ZiG32,97 million in its half year performance ended December 31, 2024, on rising operating costs.
In the comparable period in 2023, the bank posted a profit after tax of ZiG38,12 million.
During the period under review, InnBucks recorded significant increases in its staff and administrative expenses of 98,41% and nearly 270%, respectively, to ZiG41,84 million and ZiG53,24 million from the 2023 comparative period.
InnBucks also recorded another significant increase in its IT and infrastructure costs to ZiG16,24 million for the period under review, from ZiG8,95 million recorded in the same period in 2023.
“The bank’s net operating income for the year to 31 December 2024 stood at ZiG153,9 million against prior year of ZiG92,66 million,” InnBucks chairperson Ralph Watungwa said in a statement accompanying the half year financial results.
“This 66% increase was largely driven by devaluation of the local currency by 44%. There was a deliberate approach to pricing under the KaOne US$1 subscription model. This saw customers enjoying InnBucks service at affordable prices.
“While active customers increased by 20%, this has also impacted negatively on the overall profits for the period which came out lower by 13%.”
He said the bank endeavoured to offer banking services to customers at the most affordable prices.
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The KaOne programme involved charging clients US$1 for unlimited transactions to boost the number subscriptions.
InnBucks ended the period under review with ZiG85,41 million in non-interest income compared ZiG120,06 million in the comparable period in 2023.
Loans and advances more than doubled to ZiG767,78 million during the period under review, from the prior year, driven by growth in lending to business banking customers and payroll-based lending.
“Total assets grew by 180% to ZiG1,67 billion over the last six months reflecting a strong growth trajectory in the banks ability to source customer deposits funding,” InnBucks former chief executive officer Daisy Zinyemba said.
“Customer deposits grew by 230% to ZiG859 million largely driven by business banking customers. Net interest income increased by 526% to ZiG86,1 million, driven by growth in our loan book and investment in Treasury assets.”
InnBucks core capital position closed the period under review at ZiG248,04 million, blowing past the regulatory minimum of ZiG111,14 million.
“Looking ahead the bank will continue to serve the different categories or our customers across retail and business banking,” Zinyemba said.
“Strategic partnerships that deliver value for our customers will be a key enabler as the bank pursues growth, innovation and improving quality of service. In addition to our business model being sustainable into the long-term, it also positively impacts the lives of customers which is a key thrust for us going forward.”
