in Stories

Steward Bank in $6.2 million profit

Steward Bank has reported a 14 percent increase in net profit to $6.16 million for the full year to February 28, buoyed by a 49 percent growth in non-interest income.

Net operating income increased by 23.7 percent to $30.1 million from $24.3 million recorded in the previous year on the back of an increase in transactional volumes.

The growth in transaction volumes resulted in higher non-funded income of $28 million compared to $19 million recorded in the prior year, a 49 percent growth.

Additionally, the growth in transactional income has been supported by intra-group synergies within the Econet Group in the mobile financial services space.

However, net interest and related income declined by 8.45 percent to $7.1 million from $7.8 million on the back of reduced lending and interest rate caps introduced by the central bank.

Total deposits increased by 56 percent to $144.6 million from $92.6 million recorded in the prior year as a result of an increase in individual deposits while loan and advances to customers declined by 6.6 percent to $52.6 million from $56.3 million due to cautious lending.

As a result, the bank’s loan to deposit ratio decreased to 37 percent from 63 percent recorded in the previous year.

“In an increasingly volatile and uncertain economic environment, the board has taken the decision to be conservative in lending, which is reflected in our liquidity ratio and loan-to-deposit ratio,” chief executive  Lance Mambondiani said.

Non performing loan (NPL) ratio declined to 10.5 percent from 15.9 percent previously.

The bank’s cost to income ratio improved to 62 percent from 69 percent on increased revenue.

Liquid asset ratio also increased to 81 percent from 72 percent as a result of a 161 percent increase in cash and cash equivalents as well as growth in interbank placements.

Return on equity remained at 8 percent.

Steward bank’s capital adequacy ratio increased to 45 percent from 37 percent, against the RBZ minimum requirement of 12 percent.

Total assets increased by 34 percent to $226.1 million from $168.7 million chiefly on the back of an increase in cash and cash equivalents.

The bank had accumulated losses of $35.2 million as at the close of the year.

Steward bank reduced its debt significantly by 92 percent to $280 000 from $3.6 million recorded in the same period last year.-The Source

(22 VIEWS)

Don't be shellfish... Please SHAREShare on Google+Tweet about this on TwitterShare on FacebookShare on LinkedInEmail this to someonePrint this page

Write a Comment

Comment