Steward Bank profit before tax rises 133%

Steward Bank profit before tax rises 133%
Published: 04 June 2018
STEWARD Bank has recorded profit before tax of $32,7 million for the full year ended February 28, 2018, a 133 percent jump from last year's $8,4 million.

In statement accompanying the bank's financial results for the period under review, chief executive officer, Dr Lance Mambondiani attributed the significant improvement to strong growth in transactional based revenue in line with strategic intent.

"The increase in our deposits validates our business model which is customer centric and adapted to provide unparalleled convenience to our customers. Net operating income increased by 133 percent from $30,1 million to $70,3 million," he said.

The bank recorded a profit before tax of $32,7million, up from $8,4 million reported in prior financial year.

Dr Mambondiani said an unprecedented surge in the volume of transactions processed required the institution to respond with a significant investment to upgrade its technology platforms and systems.

"Following this investment in our technology platforms and up-skilling of our Information and Communications Technology unit, the bank has experienced relative stability on its system after the instability encountered earlier in the financial year.

"However, we continue to make significant investments in our systems proportionate to the growth we are experiencing to increase our absorptive capacity," he said.

During the period under review the bank registered 176 000 new customers taking the total number of customers using its services to more than 573 000.

Dr Mambondiani said the bank's approach to delivering solutions to all its customers was technology driven relying largely on the digital platforms developed by the bank's parent company, Econet Wireless Zimbabwe.

"This has allowed us to achieve a scale that otherwise would not be possible using conventional banking processes and systems.

"We are extremely honoured to have become a bank of choice for many Zimbabweans and look forward to welcoming those who are yet to join us to the purple family," he said.

Dr Mambondiani said their total assets grew 104 percent from $226,1 million the previous year to $460,7 million in the year under review. Total deposits grew 141 percent from $144,6 million to $348,2 million as confidence in the bank continued to grow.

Dr Mambondiani said the increase in the bank's deposits validates the business model, which was customer-centric and adapted to provide unparalleled convenience to customers.

"A significant investment is currently being deployed in upgrading and transforming our digital platforms to world class standards as part of the digitisation of all our services.

"In the next financial year, the bank will focus on increasing its pace of digitisation and integration with the Econet Group's various technology initiatives.

"Despite the headwinds ahead, we remain bullish about the bank's future prospects and confident in the ability of management and the board to turn these challenges into opportunities," he said.
- chronicle
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