EcoCash posts solid first quarter performance
EcoCash Holdings Zimbabwe Limited experienced a solid performance in the first quarter to May 31, 2024, supported by strong foreign currency business.
According to the group, active foreign currency accounts (FCA) increased by 78 percent compared to the same quarter in the prior year.
As a result, FCA inflows grew by 284 percent compared to the same quarter last year. It posted a quarterly historical revenue of $403 million and a historical profit after tax of $214 million.
“The performance for the quarter was anchored by FCA transactions,” said company secretary Mrs Charmaine Daniels in a trading update for the quarter under review.
According to the group, FCA transaction volumes grew by 36 percent against the same period last year.
Remittance volumes remained strong with an increase of 8 percent as compared to prior year’s period. The bank accelerated its green energy initiatives in the quarter under review, having partnered with Distributed Power Africa to offer power as a service. For the period under review, installations increased by 47 percent in comparison to the previous quarter.
“The installations cut across powering business premises and residential households ensuring that clean energy is availed and contributes to the target of reducing carbon emissions by 40 percent,” said Mrs Daniels
From a revenue performance perspective, the business saw its green energy revenue improve by 51 percent.
Mrs Daniels said EcoCash had been focused on repositioning the business following the approval of the Scheme of Reconstruction.
At an Extraordinary General Meeting held on April 17 this year, shareholders approved that all non-banking assets be transferred from EcoCash Holdings Zimbabwe Limited to Econet Wireless Zimbabwe Limited.
Subject to regulatory approval, only the banking unit, Steward Bank Limited, will remain under EcoCash Holdings.
Other business units – EcoCash, VAYA Technologies Zimbabwe , Econet Insurance, Econet Life, MARS Zimbabwe and Maisha Health Fund will be transferred to Econet.
In line with this, the trading update has therefore been prepared for the remaining banking unit, Steward Bank Limited.
The capital adequacy ratio for the bank as of March 31, 2024 stood at 44,85 percent which was above a mandated regulatory minimum of 12 percent. The bank is compliant with Tier 1 capital requirements as prescribed by the Reserve Bank of Zimbabwe.
In the outlook period, the group is optimistic about its prospects and “well-positioned to continue building on our momentum and creating long-term value for our shareholders through continued innovation, leveraging on digital technologies.”
The group will also pay attention to cost containment measures and optimization of operational efficiency.
Source: Herald
