- Deposit Growth: 185% increase to ZWG1.37 billion (H1 2024) vs. ZWG483 million (H1 2023)
- Profit Surge: 1047% growth in profit before tax to ZWG1.66 billion (H1 2024) vs. ZWG144.6 million (H1 2023)
- Expanding Profit Margins: 851% increase in profit margins, driven by fair value gains from the scheme of reconstruction
Harare- EcoCash Holdings reported a 185% surge in deposits to ZWG1.37 billion for the six months ended August 31, 2024, compared to ZWG483 million in the corresponding 2023 period.
This significant growth was complemented by a 91% increase in loans to ZWG541 million, demonstrating the company's expanding presence in the financial services sector.
The upward trend in loans and deposits positively impacted Steward Bank's interest income, reaching ZWG38.2 million, while non-interest income stood at ZWG156.7 million.
However, when adjusted for inflation and converted to ZWG, these figures translated to ZWG72.4 million in net interest income and ZWG257.4 million in non-interest income.
Despite the growth in income streams, revenue declined to ZWG195 million from ZWG329 million due to the local currency's volatility.
Deposits in ZWG primarily likely comprise month-end salaries, as the local currency's ephemeral nature renders it unsuitable for long-term banking.
The Group performed a restatement of prior-year comparatives to April 5, 2024, utilizing the inflation index.
This process resulted in a monetary loss of ZWG148.7 million, stemming from the restatement of opening ZWL balances in accordance with IAS 29 guidelines prior to conversion to ZWG.
However, profit margins witnessed a substantial expansion, driven by fair value gains from the scheme of reconstruction. Profit before tax soared to ZWG1.66 billion, representing a significant growth from ZWG144.6 million in the prior-year period.
After-tax profit remained robust at ZWG1.4 billion, up from ZWG54 million. The company's profit margin increased to 851% from 16.5% in the previous year, primarily attributed to the substantial fair value gains.
Looking ahead, EcoCash Holdings remains committed to driving innovation through digital technologies, enhancing operational efficiencies, and fostering strategic partnerships to meet evolving customer needs.
Group Chairperson Sherree Shereni emphasized the dedication to delivering exceptional service through seamless banking channels.
By leveraging digital solutions and strategic collaborations, EcoCash Holdings is well-positioned to maintain its market presence and drive growth in the financial services sector.
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