Steward reports first FY profit

STEWARD Bank, a subsidiary of Econet Wireless, on Wednesday reported its first ever full-year net return, declaring a US$5,4 million profit for the period to February 29 from a loss of US$8,3 million last year.

Staff writer.

Econet Wireless took over the bank, then TN Bank, from former Econet chairman Tawanda Nyambirai. The mobile operator had first acquired a 45% stake in 2012, before taking over the remaining shareholding in 2013.

Steward Bank reported a 23% rise in transaction volumes to US$24,34 million. Profit before tax amounted to US$6,2 million, compared to a loss before tax of US$9,5 million last year.

“Our loan to deposits ratio averaged 58% reflecting our cautious approach to lending. More significantly as part of the clean-up process, we managed to reduce our non-performing loans ratio from 35% to 13,5%,” said chairman Oluwatomisin Adeola Fashina.

Fashina left the bank in April to pursue other interests in the region.

Operating expenditure declined to US$18 million from US$29 million in the previous year.

The bank’s liquidity ratio stood at 72% against the prescribed minimum ratio of 30%. It has a capital base of US$38,6 million.