POSB records $8m profit

HARARE - The People’s Own Savings Bank (POSB) yesterday said its net profit surged by 111 percent to $8,11 million in the half year to June 30, 2018 due to an increase in interest income.

Interest income increased by 27 percent to reach $8,43 million from $6,62 million during the same period.

Non-interest income increased by 14 percent from $12,51 million in the previous period reporting period to $14,21 million driven by an increased usage of the bank’s electronic banking platforms.

Mathilda Dzumbunu, the financial institution’s chairperson, said operating expenses increased by two percent to $13,63 million from $13,37 million reported in prior period.

“This was in line with our business growth model and well below year on year inflation rate for the period under review,” she said in a statement accompanying the group’s financial results.

Cost to income ratio improved to 63 percent down from 78 percent recorded in the comparative period as cost management and operational efficiency continue to be key priority for management.

Shareholders’ fund increased by six percent to $57,7 million from $54,4 million recorded in December last year mainly attributed to organic growth.

On June 6, the bank held its fourth annual general meeting were a dividend of $1,9 million was declared.

Government, which is the sole shareholder, recapitalised the bank with capital equivalent to the dividend declared.

Dzumbunu said as the country’s economic revival gathers momentum, POSB had taken heed of the calls by the Reserve Bank of Zimbabwe to deliberately support productive sectors that generate foreign currency to ease both cash shortages and cross border payment bottlenecks.

“To this end, the bank is at an advanced stage of establishing a $10 million line of credit with the financier in order to provide foreign currency for exporters. We expect the facility establishment modalities to be finalised in the second half of the year,” she said.

Going forward, the POSB board said it would continue to maintain its focus on the implementation of the bank’s prevailing strategy to ensure that there is delivery of value to its customers and to achieve business growth and sustainable returns for its stakeholders.

“In keeping with the bank’s manage on financial inclusion, POSB will continue to support efforts to grow the economy whilst ensuring that depositors’ funds remain protected,” said Dzumbunu.

— The Financial Gazette

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