EHZL | Ecocash Holdings Zimbabwe 1H24 Earnings Update; Steward bank revenue contribution increases

    During the period under review, Ecocash continued nationwide expansion within the mobile money susies intosed da number or merchant acceping coasts payments in a deserate move to increase forex revenue. The Group also re-launched the EcoCash Express Debit Card, which is linked to customers' EcoCash USD accounts, allowing them to swipe, withdraw cash, or transact at any MasterCard terminal or ATM. Steward Bank also saw further digitization during the period through the adoption of new technologies. The Bank rolled out a Digital Agent Banking Portal that automates banking services offered by the Bank's agents to increase accessibility to these services, in addition to Q-Not, a digital account opening platform enabling customers to open full KYC accounts remotely. The FinTech business, which encompasses EcoCash and Steward, benefitted from these new product innovations and growth in forex revenue contribution. Resultantly, revenue for the group grew 499.52% in historical terms to ZWL$163.17bn from ZWL$27.22bn in 1H23, with FinTech driving 76% of total revenue whilst InsurTech and Digital Platsme son, it DA margin perising om 4 sev 0 2 5% on me back on ta 1,175.46% increase in other income, which encompasses sundry income and fair value adjustments totalling ZWL$137.42bn. Ecocash closed the period with a PAT of ZWL$20.15bn, up 2,347.06% from ZWL$823.40mn in the prior year. Meanwhile, PAT in inflation adjusted terms was ZWL$130.20mn, recovering from a loss position of ZWL$1.68bn in the comparative period. Profit attributable to shareholders increased by 909.2% whilst headline earnings rose 7.67%. The Group did not declare an interim dividend for the period.


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