• Tue. Nov 29th, 2022

Steward Bank’s half year profit jumps threefold

ByEconomic Times

Nov 7, 2022

By ETimes

Steward Bank’ half year inflation adjusted profit jumped threefold and the bank expects its activities to be driven by digital transformation.

In 2021, the bank invested in a new core banking system. The new system was put in place to support 4IR Banking trends and technologies, like automation and artificial intelligence, which, during the half year under review, have successfully helped the bank develop its digital bank revenue, clientele, and competitive position.

For the half year ended 31 August 2022, the bank’s net interest income rose 119% to ZWL6 billion from ZWL2.7 billion in the prior year.

“…with one of the major revenue drivers being the Bank’s AgroFuture product, which combines digital and smart technologies with farmer financing,” the bank’s chief executive officer Courage Mashavave said in a statement accompanying the results.

Non-interest income improved to ZWL10.2 billion from ZWL7.6 billion in the comparative period.

“The improvement in non-interest income was largely driven by an increase in our digital channels adoption rate that saw customers transact more on our digital channels following our ‘Go Digital’ campaign which had a mandate to shift customers from using branch services to using our digital channels.”

The bank continues to provide the market with cutting-edge digital solutions and is still sufficiently financed to withstand adverse shocks.

“Digital Transformation will be at the helm of the Bank’s activities in the next half year, with the Bank looking to pioneer digital financial innovations that address societal and sustainability problems such as financial inclusion,” said Mashavave.

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In the period, the bank disbursed more than 60,000 digital loans to women while maintaining a POS device complement of more than 3,500 in rural areas, ensuring that sole proprietors and business owners operating in these areas have access to financial services.

The liquidity ratio stood at 64%, above the minimum regulatory ratio of 30%.

It declared a dividend amounting to ZWL$650 million – Harare

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