Harare - Ecobank Zimbabwe Limited posted a profit after tax of $18.4 million in the half year ended June 30, 2018, representing a 64 percent increase from $11.4 million profit the bank recorded in the same period last year.
The increase in profit was mainly attributed to a year-on-year increase of 46 percent in Net Interest Income added to a 75 percent year-on-year increase in Non-Interest Income.
Ecobank Board Chairperson, Mr Fortunate Chisango reflected on the challenges posed by the macroeconomic environment dominated by the negative balance of payments position arising from structural imbalances in exports against imports, but said the Group is optimistic of positive performance pushed by the adaptation of digitization.
“The Bank remains positive about the prospects for further growth in its chosen niche markets and looks forward to the remainder of 2018 with optimism as more customers are on-boarded onto our digital platforms and gain confidence in banking solutions that deliver service and meet customer transaction requirements,” said Mr Chisango.
Resultantly, the Bank’s total revenue grew by 38 percent to $35.3 million from $25.5 million recorded in the comparative period last year.
Operating expenses grew by 23 percent to $11.7 million in the period under review from $9.5 million in the prior period.
The increase in operating expenses was driven by the development of products and revamping of platforms to ensure seamless service delivery. This was in response to the increase in volume of transactions over the Bank’s processing and distribution channels.
The bank reported that its net non-interest income rose 75 percent year-on-year largely driven by growth in trade finance business and customer transactions volumes on digital channels.
During the period the group grew its asset base by 31 percent to reach $714 million, reflecting both increased deposits and subsequent asset creation.
A final dividend of $5.9 million was declared together with an interim dividend of $2.3 million declared and paid to shareholders registered on the company’s books as at 30 September 2017.
The Bank had a capitalisation of $92 million, which is above the prescribed minimum levels and well ahead of the RBZ approved capital plan.
The Group reported that it has put in place cyber security monitoring systems to counter the risks that the use of ICT presents to the Bank and its customers.
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