EcoCash Holdings posts strong HY profit growth
STAFF WRITER
EcoCash Holdings Zimbabwe Limited this week reported a strong financial performance for the half-year to August 31, 2024, reflecting the resilience of its business model and the success of its strategic initiatives.
The listed financial technology group achieved a profit after tax of ZWG 1.5bn , a remarkable 2,636% increase from the ZWG 55m recorded in the same period last year.
The strong performance was attributed to the successful completion of a scheme of reconstruction earlier this year, which saw the transfer of EcoCash’s non-banking business units to Econet Wireless Zimbabwe. The move allowed the group to strengthen its focus on its core banking operations under Steward Bank, driving growth through operational efficiencies and digital transformation.
EcoCash Holdings Chairperson, Sherrie Shereni, highlighted the strategic measures that underpinned the group’s performance.
“The bank continued with the business remodelling process that began in the prior financial year,” said Shereni, adding that the focus was on the three strategic pillars of people, processes and technology.
“This exercise brought about rapid process automation, product optimization, head count rationalization, and adoption of new technologies to enhance our service delivery. The outcome of this important exercise is expected to enhance our performance going forward,” she said.
As part of its digital transformation, Steward Bank implemented Visa Card reloads, a feature designed to enhance customer convenience. The process automation and advancements in digitally oriented products strengthened the bank’s market position.
During the reporting period, Steward Bank achieved notable growth across key operational metrics as deposits surged by 185% to ZWG 1.4bn, while loans increased by 91% to ZWG 551.4m.
The Bank’s capital adequacy ratio stood at an impressive 22.66% as of June 30, 2024, well above the regulatory minimum of 12%. This compliance with Tier 1 capital requirements highlighted Steward Bank’s robust financial health and its capacity to support future growth.
EcoCash Holdings demonstrated adaptability in a complex economic environment characterized by the introduction of Zimbabwe Gold (ZWG) as the country’s new currency in April 2024.
This currency shift required restatement of financial statements to comply with international reporting standards. Despite these challenges, the group recorded fair value gains of ZWG 1.2bn from the scheme of reconstruction.
Looking ahead, EcoCash Holdings committed to intensify its digital innovation and operational excellence drive.
“We will grow our partnerships and collaborations to meet the ever-changing customer needs,” Shereni said.
“We are dedicated to providing exceptional service to our customers through seamless and efficient banking channels.”
