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Steward Bank’s unfunded income doubles -Newsday Zimbabwe

INFLATION-ADJUSTED unfunded income at Steward Bank increased 111% to ZWL$745 billion for the year ended February 29, 2024 compared to the previous period, driven by foreign currency transaction income.

INFLATION-ADJUSTED unfunded income at Steward Bank increased 111% to ZWL$745 billion for the year ended February 29, 2024 compared to the previous period, driven by foreign currency transaction income.

By contrast, net interest income for the year amounted to ZWL 115 billion, down 37% from last year due to tighter liquidity conditions in the domestic market.

In a normal environment, banks earn most of their income through interest on loans.

In a statement accompanying the group’s financial results for the period under review, chairman Bernard Chidzero said the bank has initiated digital banking with green energy financing to unlock new revenue streams.

“The bank recorded an inflation-adjusted pre-tax profit of ZWL 145 billion. The bank is confident that its performance will improve in the coming periods. This optimism is driven by our refocused strategy, which integrates digital banking with green energy financing to unlock new revenue streams,” said Chidzero.

Net operating income decreased to ZWL 2.3 trillion from ZWL 6.1 trillion recorded during the same period last year.

The bank met the minimum capital requirements of US$30 million with a capital adequacy ratio of 41% during the period under review.

Chidzero noted that the group has implemented digital innovations such as the digital banking agent, which enabled the bank to extend its presence across the country, covering both rural and urban areas during the year.

“The bank implemented several digital innovations during the year under review, aligned with its objectives of promoting digital financial inclusion,” he said.

Steward Bank also deployed its smart ATMs 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 of directors and management have implemented to encompass digital transformation and process optimization. Our commercial redevelopment will address changing customer needs and unlock operational and cost efficiencies,” said Chidzero.

“This focus on continuous improvement allows us to capitalize on opportunities that improve customer experience and service delivery. “The board continues to focus its efforts on creating shareholder value and customer excellence.”

He also noted that the bank will incorporate artificial intelligence for process improvement and advanced automation.

“The bank continues to pursue its digital agenda in line with its strategic intent to be a truly digital bank by adopting new technologies, including AL, for process improvements and advanced automation leading to better customer experiences across all our touchpoints. digital,” Chidzero said. .

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