- PAT grew to $361 million in inflation-adjusted terms
- Increased digital acceptance grew customer base
- PDFS unit registered 202% growth in transactional income
Harare -BancABC (Zimbabwe) Limited’s investments in technological infrastructure has yielded positive results for the Bank as it contributed to its strong performance in the half year ended 30 June 2020.
In a statement accompanying the Bank’s results for the period, BancABC’s Non-executive Chairman, Albert Katsande said profit after tax improved to ZWL$361 million in inflation-adjusted terms and grew to ZWL$710 million in historical terms compared to the prior comparative period.
The top line growth was attributed to growth in several metrics including customer base, earning assets and trading revenues.
He added that the upsurge in the number of customers and increasing digital acceptance across all channels contributed to an increase in overall revenue and diversification of revenue streams.
The COVID-19 induced national shutdowns necessitated the shift to use of digital platforms so as to curb the spread of the disease through face to face interactions.
In this regard, BancABC focused on improving its digital service delivery to sustain its operations during the shutdown.
According to Katsande, a number of new innovations and digital solutions were launched in the period under review to enhance customer experience.
“The Bank launched Branch X a virtual branch, partnered with Vaya Logistics to deliver Dial-A-Visa and took the unusual step of extending operating hours so that Zimbabweans could access remittances for critical supplies”, he said.
BancABC also accelerated its efforts to engage and onboard clients across digital platforms through a new online banking platform for corporates and by launching Ally, a WhatsApp Banking proposition.
Dr. Lance Mambondiani, the Bank’s CEO said the Payments and Digital Financial Services (PDFS) unit registered a 202% growth in transactional income due to proportionate increase in the number of customers using its digital platform as a primary channel.
“Improved platform stability has led to improved system uptimes and resultantly an improved experience for our customers. The Bank continues to prioritise the development of robust digital platforms to provide a solid foundation for growth in our customer base”, he said.
Total operating income in the period grew by 1048% in historical terms as the Bank grew its non-interest income by 1000% across all key lines while fees and commission income grew over 18 times, supported by the aggressive growth in the retail customer base and the on-going digital transformation process.
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