All-Round Growth Recorded in Latest Cassava Trading Update

Author Name
Rugare Mukanganga
Markets 1 month ago

Cassava Smartech's performance in the quarter ended 31 August 2021 was well-rounded and reflected significant growth from the previous year’s comparative period.

  • Group Revenue ↑ 70%
  • Wallet Funding ↑ 54%
  • Steward Bank Revenue ↑ 300%

Group revenue rose by 70% in the period and was driven by higher transaction activity than 2020’s comparable period. Similarly, the Group reported a 63% revenue growth in the Mobile Money unit while transaction values and wallet funding improved 25% and 54% respectively.

In the commercial banking sector, Steward Bank’s revenue surged 300% from the previous year’s comparative quarter, an improvement the Group attributes to higher interest income earned as part of its interest-earning asset drive.

Within the insurance unit, Insurtech’s revenue grew by 70%, with Life Business insurance and Short-Term insurance recording 11% and 106% improvements in customer base from the previous year’s comparable period.

Looking at the Group’s logistics division, Vaya operations grew 51% from the previous year as a result of strategic relationships developed.

What lies ahead

Reflecting on 2020 banking sector trends, Steward Bank’s revenue may be coming from a low base, making a 300% revenue growth positive but mostly reflective of peak pandemic era recovery. Technological product lines and services should continue to tap into previously hard to reach or inaccessible market segments, supporting customer acquisition efforts going forward.

Ironically, the same technological services anchoring divisional growth are behind Steward Bank’s notoriously inconsistent banking services – a pain point for existing customers with numerous alternatives available in the banking sector.

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