INFLATION-ADJUSTED non-funded income at Steward Bank rose by 111% to ZWL$745 billion for the year ended February 29, 2024 compared to the prior period, driven by foreign currency transaction income.
In contrast, net interest income for the year stood at ZWL$115 billion, 37% below last year’s performance on the back of tighter liquidity conditions in the domestic market.
In a normal environment, banks get the bulk of their income through interest on loans.
In a statement accompanying the group’s financial results for the period under review, board chairperson Bernard Chidzero said the bank has started digital banking with green energy financing to unlock new revenue streams.
“The bank reported an inflation-adjusted profit before tax of ZWL$145 billion. The bank is confident that its performance will improve in subsequent periods. This optimism is driven by our refocused strategy, which integrates digital banking with green energy financing to unlock new revenue streams,” Chidzero said.
Net operating income decreased to ZWL$2,3 trillion from ZWL$6,1 trillion recorded during the same period the previous year.
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The bank was compliant with the minimum capital requirements of US$30 million with a capital adequacy ratio was 41% for the period under review.
Chidzero noted that the group has implemented digital innovations such as digital banking agent which enabled the bank to spread its footprint across the country covering both rural and urban areas during the year.
“The bank rolled out several digital innovations in the year under review aligned with its objectives of promoting digital financial inclusion,” he said.
Steward Bank also deployed its smart automated teller machines in strategic locations to address the growing demand for cash by its customers and unlock operational and cost efficiencies.
“Our positive return on equity reflects the measures that the board and management have put in place that embrace digital transformation and optimising processes. Our business remodel will address evolving customer needs and unlock operational and cost efficiencies,” Chidzero said.
“This focus on continuous improvement allows us to capitalise on opportunities that enhance customer experience and service delivery. The board continues to focus its efforts on shareholder value creation and customer excellence.”
He also noted that the bank is set to incorporate artificial intelligence for process improvement and advanced automation.
“The bank continues to pursue its digital agenda in line with its strategic intent of being a truly digital bank through embracing new technologies, including Al, for process improvements and advanced automation which lead to enhanced customer experiences on all our digital touchpoints,” Chidzero said.