Steward Bank’s Liquidity Ratio Declines To 70%

Zimbabwean banks, African Banks, Econet Zimbabwe, TN Bank, Financial Services

By now you are likely aware that Steward bank reported outstanding results for the year ending 28 February 2018. On various metrics, Zimbabwe’s youngest bank registered enviable figures. For instance, the bank witnessed a 133% increase in net operating income, a 289% increase in profit before tax, an 87% increase in net interest income etc. But another aspect worthy of attention is the decline of its liquidity ratio from 81% to 70%.

However, its liquidity ratio standing at 70% is still high and also it is way above the minimum prescribed ratio of 30%. It, therefore, means that the bank is still well guarded against liquidity risk. Liquidity risk is the risk that a company (or bank in this case) may be unable to meet short-term financial demands. The role of banks is to transform short-term deposits into long-term loans, although this makes banks inherently vulnerable to liquidity risks.

The bank says that its liquidity will continue to look good due to efficient “internal control processes and contingency plans for managing liquidity risk.” Steward bank’s efficient management of liquidity is essential as it upholds confidence in the bank and ensures that the business is sustainable. 


While Steward bank’s high liquidity ratio is still laudable, it may dampen profits in the long terms for the bank given that holding cash is unproductive, although keeping  it is a necessary part of banking. 

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4 thoughts on “Steward Bank’s Liquidity Ratio Declines To 70%

  1. If you want endless frustration and tears register with their online banking and witness your money disappearing through botched tr transactional charges.

    For those brave enough try their OTP services, l withdraw all my money from that bank, useless Mambondiyani with his rubbish online platform

  2. I think you shouldn’t write financial articles if they aren’t going to make any sense. The declining liquidity ratio, the basis of the article, is made to seem like both a bad thing and a good thing. It should only be one.

    Another thing, provide comparisons against other banks for the “enviable” figures so that there is some sort of perspective.

  3. I don’t know about enviable but all banks are liking it on bank charges… The our banks have actually posted more profits… But all this is a bubble and the over inflated RTGS balances are the main issue…

  4. So whats your point Mr Writer here. Your piece of article is shallow & isnt hammering any worth point

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