Steward Bank soars despite tighter liquidity, drives growth with digital innovation

Steward Bank, Zimbabwe’s largest bank by depositors, has reported a 111 percent surge in inflation-adjusted non-funded income, reaching ZWL745 billion for the fiscal year ending February 29, 2024.

This impressive performance was driven by significant growth in foreign currency generation, according to management.

Despite tighter liquidity conditions leading to a 37 percent decline in net interest income to ZWL115 billion, Steward Bank managed to achieve an after-tax profit of ZWL68.5 billion during the same period.

“Our cost-to-income ratio remained well-controlled, exhibiting only a marginal increase of 1 percent,” said Steward Bank CEO Courage Mashavave, in a statement accompanying the bank’s financial results published on Monday.

“We are actively leveraging our strengths in digitization and automation to enhance efficiency and competitiveness. This will ensure we continue to deliver exceptional service to our customers,” he said.

In its ongoing digital banking transformation, Steward Bank has enhanced its International Card offering to meet the unique and evolving needs of its customers. The introduction of new cards featuring contactless payment functionality, EMV chips, and enhanced security measures to prevent card cloning, represents a significant step forward in payment efficiency.

Aligned with the country’s multi-currency framework, Steward Bank launched the FCA Debit Card and expanded its multi-currency POS machines, enabling transactions in both USD and ZWL.

“Opening up our payment channels to multi-currency transactions empowers our customers with greater autonomy over their funds. This flexibility has driven a 25 percent increase in the monthly volume of transactions and a 32 percent rise in transactional values over the past year,” Mashavave noted.

In the 12 months to February, Steward Bank’s capital adequacy ratio remained strong at 41 percent compared to the regulatory minimum of 12 percent.

The bank was also adequately capitalised to cover all risks and was compliant with the minimum capital requirement of US$30 million.

From a correspondent banking perspective, Steward Bank established USD and Euro accounts with a regional bank, bolstering cross-border payment capabilities for both corporate and individual clients.

Mashavave said the bank’s partnership with Distributed Power Africa (DPA) introduced a pay-as-you-go energy product, witnessing a 47 percent quarter-on-quarter increase in uptake since its launch. This initiative underscores the bank’s commitment to expanding its footprint in the renewable energy sector.

Mashavave said Steward Bank is also integrating Artificial Intelligence (AI) into its services, providing personalized banking experiences through features such as service and product recommendations on the Square mobile banking app, based on customers’ transactional behaviour.

“Robotic process automation has further improved back-office functions, enhancing operational efficiencies and service delivery,” he said.

Looking ahead, Mashavave said the bank’s strategic blueprint focused on nurturing a digital ecosystem that meets the evolving demands for digital services and personalized banking solutions.

“With a well-capitalized balance sheet, strategic technological investments, and a forward-looking approach, Steward Bank aims to consolidate its position as an innovative and progressive leader in Zimbabwe’s banking sector,” he said.-businessweekly