POSB deposits up

HARARE - People’s Own Saving Bank (POSB) has reported an 11 percent increase in total deposits to $57,6 million for the half-year, while total assets  rose 12 percent to $73,1 million.

The banking concern however, said despite country growth prospects remaining positive, they  will likely be lowered than originally projected due to the continued liquidity challenges, lack of long- term capital, limited lines of credit, power shortages, low investor uptake, an adverse agricultural season and lack of vibrant market.

“The second half of the year promises to bring new prospects to the bank with the introduction of the new products and services."

The completion of the core banking system upgrade will also bring improved operational processes which should enhance service delivery,” said acting board chairperson Israel Ndlovu.

In the period under review, POSB’s revenue reserves were up 13 percent to $6,34 million from $5,6 million in December 2011.

“Interest income was up 16 percent to $4,28 million from $3,7 million in June 2011. Non-interest income increased by 21 percent to $8,14 million from $6,7 million recorded same period last year with cost-to-income ratio increasing to 93 percent up from 77 percent in June last year, “Ndlovu said.

He said the bank going forward will continued to employ strategies aimed at delivering quality service such as opening up two additional branches in Harare namely High Glen and Harare Main so as to be more accessible to customers.

“In order to enhance efficiency, Chiedza branch was converted to an electronic branch which transacts card- based transactions only, in addition to the Western Union services already offered there,” Ndlovu said.

He added that the bank will also continue to develop more effective ways to serve its customers.
POSB recorded a net profit of $0,7 million.

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