Business
My Bucks scales up digital innovations amidst Covid-19 hiccups
August 13, 2020 / Wahard Betha
My Bucks Banking Corporation says it is scaling up utilization of digital banking platforms in order to offer consistent and relevant customer services amidst the novel coronavirus (Covid-19) pandemic.
In a summary of unaudited financial results for the half year ended June 30th, 2020, the banking group says it plans to embark on the journey towards becoming a truly digital bank by offering enhanced digital platforms amid cost reductions, and ease doing business while passing on the benefits to the customers.
“In order to achieve excellent customer experience, the Bank will also focus on the rationalisation of its cost base, the effective and prudent management of risks and liquidity, the diversification of its balance sheet, blended with efficient portfolio allocations, which will effectively result in the maintenance of a robust capital position,” says the Bank in a statement signed by Board Chairman Francis Pelekamoyo and MD Zandile Shaba.
It forecasts that Malawi’s macroeconomic outlook is expected to remain stable for the most part of the year 2020 while the growth path for 2020 rests much on what happens in the remaining months as the country continues to be challenged with increasing cases of Covid-19 pandemic.
My Bucks states that despite the challenges generated by the Covid-19, monetary authorities in the country are committed to keeping a low inflationary environment objective in the medium term.
Economic growth is expected to be driven from agriculture, manufacturing, mining, construction and transportation sectors.
It says: “There has been significant improvement in the power sectors that will ably anchor the sectoral growth prospects.”
“The current framework being implemented by the monetary authorities is also a catalyst of growth, as the objective of a lower interest rate, inflation and stable currency environment is currently reality.”
In the financial year under review, My Bucks successfully concluded the acquisition of 100% shareholding and claims of the Nedbank Malawi which is a strategic development for the group to expand its retail product offering across the country in areas where it did not have presence before.
It says: “The additional points of representation will be enhanced with digital product offerings in a number of areas with an overarching aim of achieving customer satisfaction to our focused segment of the market for both domestic and foreign currency banking products and services.”
“The group will also continue to expand using organic growth acquisitions and mergers where valuable opportunities exists in the Malawi market and the region as part of its expansion strategy.”
Meanwhile, the global economic growth for 2020 has been revised downward to 2.4% from an earlier projection of 2.9% enticing the slowdown in global economic activities following the coronavirus pandemic.
Malawi’s general macroeconomic operating environment for the first half of the year has been stable despite the country registering fewer covid-19 cases at the beginning of March 2020.
My Bucks bank has recorded a profit after tax of MK1.8 billion in the first half of the year 2020 surpassing MK817 million the same period in June 2019, representing 130% growth.
The group registered an asset growth of 70%, to MK100 billion from MK59 billion in June 2019, and the main driver of growth has been the loan book which grew by 63% to MK34 billion from MK21 billion same period ended June 2019.
My Bucks also recorded growth in customer deposits of 98% year on year.
On account of growth in the asset base, the total interest income for the first half of the year was 7% higher compared to the same period last year, while credit impairments reduced by 7% to MK191 million from MK204 million year on year.
The group’s operation costs in the first half of the year grew by 84% year on year to support the growth of the group after the successful acquisition of Nedbank Malawi, combined with business rationalisation costs and the expansion of the points of representation of the My Bucks Brand across the country.
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