Steward Bank leaps into profits

Bianca Mlilo, Business Reporter
STEWARD Bank, a subsidiary of Econet Wireless, has recorded a profit of $6,2 million before tax for the year ending February 29, 2016, up from a loss of $9,5 million the previous year.

In a statement, the bank’s chairperson Oluwatomisin Fashina said: “I’m happy to report that for the first time since our birth as Steward Bank, the bank has reported a full year profit before tax of $6,2million for the financial year ended February 29, 2016.

“Our strategy has resulted in a smaller, but more efficient balance sheet evidenced by our strong financial ratios in comparison with our peers.

“The bank had a core capital base of $38,6million as at February 29, 2016 which exceeded the Reserve Bank of Zimbabwe’s minimum capital requirements of $25 million.

“Our liquidity ratio stood at 72 percent over the same period, against a minimum regulatory ratio of 30 percent.”

Fashina said their loan to deposit ratio stood at an average of 58 percent, reflecting the bank’s cautious approach to lending, adding that they had reduced their non-performing loans ratio to 13,5 percent from 35 percent the previous year.

He said although the USD was strengthening, the country’s predominant trading currency had led to increased market volatility and their business segments had all recorded growth.

Steward Bank’s retail banking segment grew the number of new customers by 60,000 in 2015, which, to them, was an encouraging level of brand acceptance and preference by potential customers.

“Transactional banking registered significant growth on the back of our universal banking platform. As a consequence, Steward Bank has become the second largest acquirer of ZimSwitch transactions in the country,” Fashina said.

Fashina noted that they had come up with various strategies to mitigate economic hardships which included cost-cutting, increasing efficiency and collaboration with other Econet entities.

This, he said, had culminated in the launch of financial solutions for small to medium enterprises, the Zama Zama account, Ecocash and Ownai.