The bank posted a US$4,1 million after-tax profit in the year ended December 31 2011, a 20% increase from the US$3,43 million recorded the previous year. It was helped by economic revival which saw the financial sector growing by 23%.
The bank’s acting board chairman Israel Ndlovu however, said bank deposits remained largely transitory, rendering the sector vulnerable to liquidity challenges.
POSB’s total income for the period grew by 43% from US$14,44 million recorded in 2010 to US$20, 6 million. Total assets increased 37% to US$60,05 million, up from US$47,42 million the previous year.
Deposits rose to US$51,99 million in 2011, up 37% from US$37, 95 million in the prior year, whilst the bank’s capital adequacy ratio remained strong at 15%, compared to the minimum statutory requirement of 10%.
Cost management remained a challenge, with the bank’s cost- to- income ratio rising to 80% in the year under review from 76% in 2010, after costs for the period jumped 50% to US$16,49 million from US$11,01 million in the prior period.
POSB CEO Admore Kandlela said the bank would continue to increase revenue streams and maintain high expenditure control.
The bank’s loan -to -deposit ratio was 76% against a ratio of 63% the previous year, on the back of an increase in total loans from US$23,9 million to US$39,77 million. Of this amount,, loans to individuals grew by 119%, from US$15,88 million to US$32,59 million . Ndlovu said the bank’s increased business lending was still not enough to meet the market’s ‘appetite’ for credit.
In the period under review, POSB was issued an authorised dealership licence by the Reserve Bank of Zimbabwe allowing it to engage in international banking and hold a Nostro account.
Ndlovu said his bank would this year continue to consolidate its market share and offer convenience and value services to stakeholders.
ZIMPOST continues to be the bank’s key strategic partner in extending its delivery channels, with the agent handling an average of 4% of the bank’s business.