AfricaPress-Tanzania: YETU Microfinance Bank, the only stock listed microfinance in the region, net profit slightly slowed down by almost 4.0 per cent last year.
The microfinance firm, listed on Dar es Salaam Stock Exchange (DSE) alternative market, reported a minute net profit shrunk to 682m/- from 703m/- in previous year.
The firm, halted its second primary offer due to Covid-19 social restriction, despite reversal loan impairment totalling 196m/- to boost revenue failed offset both net income and non-interest income losses.
The non-interest income slid 16 per cent to 695.68m/- from 832.01m/- while net income fell to 4.38bn/- from 4.62bn/-, during the year under review.
Also, Yetu total operating expenses climbed up by almost 70m/- to 4.47bn/- from 4.40bn/- pushed up mainly by employee benefits to affect profitability levels.
However, the microfinance boosts a strong balance sheet after recording assets growth and doubling customer deposits.
The assets grew by 30 per cent to 19.5bn/- at end of last December while deposits almost doubled to 4.14bn/-.
Last month, Yetu applied for its second primary offering extension after failed to sale shares due to coronavirus effect on public gathering.
The bank had managed to conduct two successful road shows in Tabora and Mtwara before halted after the government restricted public gathering when Covid-19 broke out.
The bank put on offer 3,636,364 shares at 550/- in a two month second IPO that started mid-February to last Friday.
Yetu wanted to raise 2.0bn/- in a second IPO that would warrant its expansion to services in Njombe, Ruvuma, Iringa and Mbeya regions before venturing to Lake Zone.
The micro-lender raised 3.1bn/- in 2015 and listed its share on DSE second market—Enterprise Growth Market (EGM).
The bank has been issuing dividends since listed on DSE. In 2016 it was 14/- a share, 2017 64/- and 37/- in 2018.
The bank boost a core capital of 9bn/- against a regulator requirement of 5bn/- and after IPO, if the exercise is completed, the capital will shoot to 10bn/-.
