POST-tax profits at financial services giant BancABC surged by 566% in historical terms during the year ended December 31, 2020 after an aggressive electronic banking drive that saw its customer base double, according to a report released by the firm. The bank said post tax profit rose to ZWL$1,9 billion (about US$22,6 million) during the review period, from ZWL$289 million (about US$3,4 million) during the comparable period in 2019.
Chief executive officer Lance Mambondiani said profit was also driven by value preservation transactions to hedge against monetary loss.
“Our client base grew by 100% from 213 483 to 426 839 in the year under review,” Mambondiani said in a commentary to the bank’s financial statement for the period.
“The payment and digital financial services unit increased its contribution to the bank’s total non-funded income to 11% due to a proportionate increase in the number of customers using our digital platforms as their platform together with the expansion of the digital product offering,” he said.
Fees and commission income closed the year at ZWL$623,9 million (about US$7,4 million) from ZWL$451,8 million (about US$5,3 million) in 2019 while net interest income before loan impairment charges amounted to ZWL$549 million (about US$6,5 million), down from ZWL$726,6 million (about US$8,6 million) in 2019.
He said the bank aggressively grew its virtual branch network and unveiled a mobile banking application.
In 2020, the company announced a partnership with retail giant, TM Pick n Pay for in-store banking.
Mambondiani said so far in-store banking had been rolled out in 11 branches across the country. He said plans were underway to expand the service to 40 other stores across the country by the end of 2021. The increase in customer numbers, Mambondiani said, catapulted growth in deposits by 46% during the period.