POSB posts rise in profit

POSB posts rise in profit
Published: 02 April 2018
THE People's Own Savings Bank (POSB) posted a profit of $11.3 million for the year ended December  31, 2017 up from $9.6 the previous year.

Board chairperson, Mrs Mathilda Dzumbunu, said the positive financial results were driven by the bank's prioritisation of effective and efficient business processes like employee skills review.

The bank, which was once targeted for privatisation, grew its total assets by 38 percent to $227 million in 2017 from $164 million in 2016 as a result of growth in lending and investing business.

During the period under review, the institution saw its total deposits surge by 30 percent to $159 million from $115 million in 2016, due to deposit mobilisation strategies implemented by the bank.

The bank realised a decline in net impairment charges by 32 percent from $1.26 million in the previous year to $0.86 million in 2017.

"Net operating income for the year increased six percent to $37.60 million from $35.57 million in 2016, attributed to introduction of new products and services as well as effective utilisation of existing products and services," said Mrs Dzumbunu.

She said in response to the increase in electronic transactions, the bank has started realigning its systems strategy to match the change and customer needs.

"This exercise will be completed in the first quarter of 2018.

"With a streamlined corporate structure backed by the values and high performance culture, the bank will be better positioned to improve efficiency and reach greater heights for stake holders," said the board chair.

Mrs Dzumbuni said the bank was optimistic that the country's economy will continue on a growth trajectory considering the new economic and political developments.

She said the country's economic growth and poverty reduction remain strong and will be able to tackle macro-economic fragilities if it continues implementing competitive investment policies.

"Going forward, in line with Zim-Asset, the bank  will continue to introduce new products as well as utilise existing products in order to remain competitive.

"Considering the new political and economic developments, we believe these are exciting times to be part of the bank," said Mr Dzumbunu.
- online
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