News / National
EcoCash Holdings posts strong profit growth in half-year results
21 Nov 2024 at 06:21hrs | Views
EcoCash Holdings Zimbabwe Limited has posted impressive results for the half-year ending August 31, 2024, highlighting the resilience of its business model and the effectiveness of its strategic initiatives.
The listed financial technology group recorded a profit after tax of ZWG 1.5 billion, a remarkable 2,636% increase from the ZWG 55 million reported in the same period last year. This growth underscores the company's success in leveraging digital transformation and operational efficiency.
Strategic Realignment Drives Growth
The exceptional performance follows a major scheme of reconstruction completed earlier this year, which saw the transfer of EcoCash's non-banking business units to Econet Wireless Zimbabwe. This move allowed EcoCash Holdings to refocus on its core banking operations under Steward Bank, which has since driven growth through digital innovation and streamlined operations.
EcoCash Holdings chairperson, Mrs. Sherrie Shereni, attributed the success to strategic measures implemented across the group.
"The bank continued with the business remodelling process that began in the prior financial year," Mrs. Shereni said.
Key pillars of this transformation included process automation, product optimisation, workforce rationalisation, and the adoption of advanced technologies.
"The outcome of this exercise is expected to enhance our performance going forward," she added.
Key Metrics Highlight Success
Steward Bank, the group's core banking arm, achieved significant growth across key metrics during the period, deposits surged by 185% to ZWG 1.4 billion, loans grew by 91% to ZWG 551.4 million. The capital adequacy ratio stood at 22.66%, well above the regulatory minimum of 12%, reflecting the bank's financial robustness and capacity to support future growth.
As part of its digital transformation, Steward Bank introduced Visa Card reloads, improving customer convenience and enhancing its digital banking offerings.
Adapting to Economic Changes
EcoCash Holdings demonstrated adaptability in navigating Zimbabwe's evolving economic landscape, including the introduction of the Zimbabwe Gold (ZWG) currency in April 2024. The shift required financial statements to be restated to comply with international reporting standards.
Despite these complexities, the group recorded fair value gains of ZWG 1.2 billion from the scheme of reconstruction, bolstering its financial position.
Looking Ahead
EcoCash Holdings has reaffirmed its commitment to digital innovation and operational excellence as it continues to adapt to customer needs.
"We will grow our partnerships and collaborations to meet the ever-changing customer needs," said Mrs. Shereni. "We are dedicated to providing exceptional service to our customers through seamless and efficient banking channels."
As EcoCash Holdings strengthens its market position, the group's emphasis on innovation, efficiency, and customer-centric solutions positions it for sustained growth in Zimbabwe's dynamic financial sector.
The listed financial technology group recorded a profit after tax of ZWG 1.5 billion, a remarkable 2,636% increase from the ZWG 55 million reported in the same period last year. This growth underscores the company's success in leveraging digital transformation and operational efficiency.
Strategic Realignment Drives Growth
The exceptional performance follows a major scheme of reconstruction completed earlier this year, which saw the transfer of EcoCash's non-banking business units to Econet Wireless Zimbabwe. This move allowed EcoCash Holdings to refocus on its core banking operations under Steward Bank, which has since driven growth through digital innovation and streamlined operations.
EcoCash Holdings chairperson, Mrs. Sherrie Shereni, attributed the success to strategic measures implemented across the group.
"The bank continued with the business remodelling process that began in the prior financial year," Mrs. Shereni said.
Key pillars of this transformation included process automation, product optimisation, workforce rationalisation, and the adoption of advanced technologies.
"The outcome of this exercise is expected to enhance our performance going forward," she added.
Key Metrics Highlight Success
As part of its digital transformation, Steward Bank introduced Visa Card reloads, improving customer convenience and enhancing its digital banking offerings.
Adapting to Economic Changes
EcoCash Holdings demonstrated adaptability in navigating Zimbabwe's evolving economic landscape, including the introduction of the Zimbabwe Gold (ZWG) currency in April 2024. The shift required financial statements to be restated to comply with international reporting standards.
Despite these complexities, the group recorded fair value gains of ZWG 1.2 billion from the scheme of reconstruction, bolstering its financial position.
Looking Ahead
EcoCash Holdings has reaffirmed its commitment to digital innovation and operational excellence as it continues to adapt to customer needs.
"We will grow our partnerships and collaborations to meet the ever-changing customer needs," said Mrs. Shereni. "We are dedicated to providing exceptional service to our customers through seamless and efficient banking channels."
As EcoCash Holdings strengthens its market position, the group's emphasis on innovation, efficiency, and customer-centric solutions positions it for sustained growth in Zimbabwe's dynamic financial sector.
Source - The Herald
