adminBrighton Gumbo, Business Reporter
ECONET subsidiary, Steward Bank, has posted an after tax profit of $1,9 million for the half year ended August 31, 2015 driven by an increase in both interest and non-interest revenue.
The figure compares favourably to a loss of $3,7 million in the same period last year.
In a statement accompanying the bank’s financial statement, Steward bank chairman Oluwatomisin Fashina, said this was the first time in two years that the bank has recorded a profit.
“The bank realised a profit after tax of $1,9 million for the period compared to prior year loss of 3,7 million over the same period and a $22 million loss in 2013 for the same period,” he said.
Fashina said the bank would aggressively expand its agent banking partnerships across all major retailers to reduce the cost of serving customers.
“I believe Steward Bank has a compelling strategy to transform Zimbabwe’s banking sector through our innovative and entrepreneurial culture aimed at addressing everyday needs,” he said.
For the first half of the year, the financial institution’s qualifying core capital stood at $43,2 million against the Reserve Bank of Zimbabwe regulatory minimum of $25 million, he added.
The apex bank has also approved the bank’s capitalisation plan to $100 million by 31 December 2020.
Fashina said the financial institution recorded a strong recovery with revenue up 28 percent as a result of a significant increase in both interest and non-interest revenue.
He said for the first half of the year, the bank has welcomed over 46,000 new customers signing up for one or more of the financial institution’s products.
“Some of our key metrics worth mentioning include our cost to income ratio, which is down to 76 percent whilst our staff costs to income is at 32 percent being close to industry standards,” Fashina said.
During the period under review, operating expenses decreased by 38 percent compared to last year, with Non Performing Loans (NPLs) on the other hand also retreating by 24,7 percent from 37,8 percent to 13,1 percent.
No dividend will be declared.
Online Reporter