Founded in 2011, MyBucks SA (DE:MBCG) has been profitable at the operational level since its second year of operations, providing microloans, insurance and banking via the internet, cellphones and applications, primarily to low- and middle-income customers in sub-Saharan Africa. The lending products range has been expanded to include agricultural, educational and SME products.
Strong first half
The completed acquisition of four banks from Opportunity International in H117 has marked a step change in the business, enlarging the loan book (H117 €77.2m from €41.2m at 30 June), increasing access to funding through customer deposits (13% of funding at 31 December vs 1% at 30 June 2016) and giving MBC a presence in three new territories. The core GetBucks lending products will still account for the majority of revenues (95% in FY16), but the opportunity to cross-sell insurance and banking products has grown markedly with the acquisition.
Long-term drivers of the business
MBC’s core markets are 11 sub-Saharan African countries, which accounted for 84% of assets, 94% of revenues and all profits after tax in H117. These have a combined population of c 300m that is young, becoming better off, and still lacking broad and simple access to financial services. These drivers are likely to persist for the foreseeable future, offering a significant opportunity for providers.
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