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Oliver Kazunga Senior Business Reporter
THE People’s Own Savings Bank (POSB) is back in the black after posting a $1,25 million profit in the year ended December 31, 2014, recovering from a loss of $209,000 in the prior year.In a statement accompanying financial results for the period, the bank’s chief executive officer Admore Kandlela attributed the positive growth to the containment of operating costs for the year below budget.

“The bank recorded an operating profit of $1,25 million. This positive performance was a recovery from a loss of $209,000 incurred by the bank over the prior comparative period,” he said.

However, Kandlela said the bank had high provisions for impairment losses amounting to $3 million.

He said total income increased by 25 percent from $19,22 million in 2013 to $24,08 million in 2014.

“This is attributed to the achievement of better margins on lending products as well as the introduction of new revenue generating products,” Kandlela.

During the period under review POSB’s total assets grew by 17 percent from $89,99 million as at December 2013 to $105,22 million last year.

This was mainly a result of growth in the loan book by 46 percent from $38,66 million as at December 2013 to $56,30 million by the end of December last year.

The bank’s total deposits increased by 17 percent to $84,30 million last year compared to $72,15 million in 2013.

The growth in deposits was as a result of continuous deposit mobilisation and business development, said Kandlela, adding that POSB also continued to attract more deposits through its wide branch and agency network.

POSB operates 34 branches countrywide as well as 220 Zimpost outlets, which largely cover rural communities.

“The year also saw the deployment of 60 additional point of sale devices so as to increase process efficiency as transactions are now being done online with core banking system at 180 Zimpost offices,” he said.

On the outlook, the bank’s acting board chairman Israel Ndlovu said the bank was introducing more exciting products for the benefit of the market.

“Strategic partnership will also be a focus area for the bank as we seek to increase our footprint and provide convenient and accessible banking to all corners of Zimbabwe . . . POSB shall continue to contribute to the overall improvement in the growth of the country’s economy as expounded by the national economic blueprint, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation, by playing a key role in the banking sector,” he said.