Steward Bank clocks $42,3m core capital

Business Reporter
ECONET Wireless Zimbabwe’s subsidiary, Steward Bank Limited says its core capital base has reached $42,3 million surpassing the Reserve Bank of Zimbabwe’s minimum $25 million requirement.

Board chairman Oluwatomisin Fashina said the bank was poised for growth after narrowing losses for the full year ended February 28 to $8,3 million from 26,4 million.

“Your bank had a core capital base of $42,3 million as at 28 February 2015, which exceeded the Reserve Bank of Zimbabwe’s minimum capital requirements of $25 million.

“The submitted capitalisation plan to the Reserve Bank of Zimbabwe on how the bank intends to achieve the minimum capital requirement of $100 million by 31 December 2020 has been approved,” said Fashina in a statement accompanying the bank’s financial report for the full year.

“The bank’s liquidity ratio stood at 56 percent… against a minimum regulatory ratio of 30 percent. This was a significant improvement from the 29 percent reported last year.”

Meanwhile, the board has said it will continue to assess the capital position to ensure capital resources were adequate and that the bank was compliant with regulatory requirements.

Fashina said the loss, although being on the positive, was influenced by incurred costs such as staff rationalisation, which were a result of refocusing the business model to deliver products and services on the mobile platform, and further write off legacy loans as part of the continued balance sheet clean-up.

“The bank’s net interest income increased in comparison to the previous financial period. In line with our key focus on transactional banking, non-interest income grew to increased account activity and commissions on various new products and payment channels.

On the outlook Fashina said the entrance of mobile telecoms into the financial sector was envisaged to create opportunities for financial services growth and greater convenience for customers.

“Having introduced agent banking in November 2014, your bank remains focused on fostering financial inclusion and increased mobile based financial transactions.

“The bank will continue to monitor potential risk threats, especially in asset quality and non-performing loans,” said the board chair.