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Business Reporter
STEWARD Bank, a subsidiary of Econet Wireless posted a $3,7 million loss in the six months to August this year due to high costs incurred during business re-alignment.

The loss was, however, an improvement from $22 million recorded in the same period last year.

The re-alignment costs included staff retrenchment and the impairment of property and equipment as a result of the closure of marginal bank branches. Net income increased to $2,3 million from $2 million a year earlier due to higher margins on lending. Similarly, non-interest income rose to $7,75 million from $3,9 million on increased transaction fees.

The bank’s total assets grew by 31 percent to $181,7 million from $138,7 million as at February 28 this year. Total deposits grew 63 percent to $100 million.

The bank’s core capital stood at $51 million, double the current prescribed minimum capital level of $25 million for tier one banks. The Reserve Bank of Zimbabwe will require Tier one banks to have minimum capital of $100 million by 2012.

“The significant progress made in the deployment of point of sale infrastructure and the introduction of card products places the bank in a unique position for the promotion of a cashless economy required to counter the dilapidating impact of the current liquidity crisis,” said Steward Bank chairman Oluwatomisin Fashin in a statement.

“With this in mind, the bank will also continue to play its part in fostering financial inclusion among the general populace as well as mobilising the much needed capital for the deployment among various sectors in the economy, particularly companies designated as small, micro to medium enterprises which are key to the resuscitation of the economy.”