Steward Bank on Tuesday said its after tax profit more than trebled to $8,5 million in the six months to August from $2,6 million in the comparable period last year, driven by a significant increase in revenue.
Revenue increased by 93 percent to $29 million from $15 million in the same period last year , chiefly on increased non-interest income. “Overall performance was largely driven by a strong growth in non-interest income which grew 112 percent from prior year due to a surge in transactional volumes, notably on cards, POS and mobile banking transactions,” chairman Bernard Chidzero said in a statement accompanying the bank’s results.
Net-interest income also increased by 34 percent to $4,84 million from $3,6 million in the comparable period last year. However, operating expenditure increased to $15 million from $9,7 million in the same period last year. Total deposits increased by 14,5 percent to $165,7 million from $144,6 million recorded in the prior year as a result of an increase in individual deposits while loan and advances to customers declined by 1,5 percent to $52,8 million from $53,6 million. Total assets increased by 12,5 percent to $254,4 million from $226,1 million mainly on the back of an increase in financial assets. The equity position improved to $83,5 million from $75 million with accumulated losses declining from $35 million last year to $25,9 million as at August 31.
The bank’s cost to income ratio improved to 52 percent from 64 percent on improved efficiencies in service delivery. Loans and borrowings increased to $1,3 million from $280,000 in the same period last year. Steward bank’s capital adequacy ratio increased to 57 percent from 45 percent. Additionally, the bank’s liquidity ratio stood at 83 percent, which is more than double the minimum regulatory ratio of 30 percent.