POSB Posts U.S.$3,4 Million Net Profit

Kuudzai Chimhangwa

3 April 2011

THE People’s Own Savings Bank (POSB) returned to profitability last year after posting a US$1,91 million loss in 2009.

According to the bank’s financial statements for the year ended December 31 2010, the state- owned institution posted a net profit of US$3,43 million.

Admire Kandlela, the POSB CEO in a statement accompanying the results said the bank had embraced an enterprise-wide risk management framework and business continuity management methodology.

“All these initiatives are meant to ensure sustainable growth and operational and strategic competitiveness of the bank in the ever challenging operating environment,” said Kandlela.

Despite the government’s restoration of sound macro-economic policies in 2009, Zimbabwe’s financial services sector has been dogged by the unavailability of credit lines and minimal capital inflows owing to lack of investor confidence.

“The relatively stable environment in 2010 saw accompanying increases in bank deposits but at reduced levels compared to prior years,” he said.

Total bank deposits increased by 111% to US$38 million. Last year also witnessed the re-opening of POSB’s Southerton branch in Harare.

It also operated 28 branches countrywide as well as 168 Zimpost outlets effectively covering an untapped rural market.

Kandlela said Zimpost, which handled 3% of the bank’s business during the period under review, continues to be a strategic partner in extending the POSB’s delivery channels.

Non-interest income went up 84% from US$6 million in 2009 to US$11 million in the period under review.

Cost to income ratio, excluding restructuring costs was down 76% from the 86% mark recorded in 2009.

The bank’s balance sheet reflected a sound position as total liabilities, equity and reserves continued on an upward trajectory since January 2009 to stand at US$47 million as at December 2010.

The bank pointed out that it will continue to consolidate its market share following the deployment of point of sale machines to the bank’s and Zimpost branches to enhance service delivery.

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