Econet financial service institution arm, Steward Bank, posted their financial year-end results ending 31 August 2016.The bank recorded $8,5 million after-tax profit more than trebled from $2,6 million in the same period last year, driven by a significant increase in revenue.
In the latest period under review, Steward bank recorded a 93% in revenue to $29 million from $15 million mainly on increased non-interest income.
In a statement accompanying the bank’s financial statement, chairman Bernard Chidzero said: “Overall performance was largely driven by a strong growth in non-interest income which grew 112 percent from prior year due to a surge in transactional volumes, notably on cards, POS, and mobile banking transactions,”.
The bank net-interest income also increased by 34 percent to $4,84 million from $3,6 million in the comparable period last year.
Operating expenditure for the year increased to $15 million from $9,7 million in the same period last year.This may have been caused by the system upgrade which steward bank did this year.
Bank deposits during the half year increased by 14,5% to $165,7 million from $144,6 million recorded in the prior year as a result of an increase in individual deposits while loan and advances to customers declined by 1,5 percent to $52,8 million from $53,6 million.
During the period under review, total assets increased by 12,5 percent to $254,4 million from $226,1 million mainly on the back of an increase in financial assets.
