Almot Maqolo, Staff Writer 
ECOCASH Holdings says digital banking was its most profitable segment during the half-year to August 31, 2022, with a surplus of $5,7 billion, up by 323 percent compared to the prior comparable period.
In contrast, the mobile money and insurance segments both made losses of $4,86 billion and $4,88 billion, respectively, while the group’s other operating segments returned a profit of $5,4 billion.
“The Fintech business, anchored by EcoCash and Steward Bank, remains the largest contributor with performance being driven by new product innovations, and growth in the bank’s forex revenue, a result of the deliberate growth in the US$ loan book and foreign currency accounts,” board chairperson Sherree Shereni said in a statement accompanying the company’s results.
Revenues increased by seven percent to $45,4 billion, up from $42,5 billion in the previous period. However, revenues from mobile money operations declined by 16 percent to $20,4 billion.
Revenues from digital banking operations rose 56 percent to $17,3 billion, while those from the insurance segment increased by 7 percent to $6,8 billion. The growth in digital banking revenue was attributed to rising foreign currency revenues resulting from increased US dollar lending and foreign currency accounts.
A revamp of the Know-Your-Customer iSave accounts resulted in 234 000 new account openings during the period under review. The group’s operations generated a net cash flow of $18,8 billion and its net capital expenditures stood at $16,4 billion, the company said.
Profit before tax of $911,1 million represents an improvement from the prior period’s loss before tax position of $106,2 million. “This positive development reflects the benefits of our ongoing digital transformation journey, which has seen an improvement in operational efficiencies, as well as the support of all our stakeholders,” said Shereni.
“We will continue to build on this business strategy to ensure we deliver value for our shareholders.” EcoCash recorded a $2,6 billion after tax loss for its half-year ended August 31, 2022, down 81 percent from the 2021 inflation adjusted comparative.
The $10 billion incurred under other expenses contributed materially to the depressed performance. Operating income before interest, depreciation, amortisation and monetary adjustments declined by 80 percent to $2,5 billion, while gross profit increased by 29 percent to $38,4 billion. newsdesk@fingaz.co.zw
