GetBucks Microfinance Bank : 2022 HY Results & Audit Review

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

1. 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.
2. 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.

1. 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.
2. 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

1. Irrevocable commitments
   There are no irrevocable commitments to extend credit, which can expose The Micronance Bank to penalties or expense.
2. 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.