The audited financial statement for the year ending December 2021 shows total comprehensive loss amounted 1.12bn/- last year from 54mn/- recorded in 2020, with impairment losses on loans growing to 1.15bn/- from 53m/- respectively.
Speaking with The Guardian in February this year, Yetu Microfinance managing director Altemius Milinga admitted that the global pandemic hit small banks, including his institution, because key customers who are small and medium entreprises were badly affected by the impact of Covid-19.
He said the impact of Covid-19 affected the ability of customers’ ability to both make savings and repay loans.
The statement shows the microfinance institution net operating income amounted 3.5bn/- last year lower than 3.8bn/- recorded during the previous year.
Net interest income slowed to 2.6bn/- from 3.1bn/- in 2020 due to massive increase of loan impairment, which ate increased net interest income to 3.8bn/- from 3.2bn/- respectively.
The statement shows the financial institution increased its operating expenses during the reviewed period to 4.9bn/- from 4.1bn/- due to an increased administrative and operating expenses as well as employees benefits expanses.
Employees benefit expenses grew to 2.5bn/- from 2.2bn/- while administrative and operating expenses jumped to 2.1bn/- from 1.6bn/-.
The statement shows total assets shrunk to 17.4bn/- last year from 19.6bn/- in 2020 due to slowdown of loans and advances, cash and cash equivalent.
Loans and advances decreased to 13.6bn/- from 15.4bn/- respectively while cash and cash equivalent dropped to 315.8mn/- from 1.5bn/- respectively.
Total liabilities slowed to 10bn/- last year from 11.03bn/- in 2020 due to decrease of customer deposits to 3.6bn/- last year from 3.9bn/- in 2020 and borrowings to 6.1bn/- from 7bn/- respectively.
The DSE report shows the institution’s share price closed at 510/- on Tuesday this week with the market capitalization of 6.18bn/-.