POSB reports half year loss

PEOPLE’S Own Savings Bank posted a loss of $130 956 in the six months ended June 30, 2013 from $714 719 profit during the same period in 2012. Provision for impairment loans and advances accelerated during the period under review.

Report by Victoria Mtomba

In a statement accompanying the group’s results, acting board chairperson Israel Ndlovu said fees and commission income declined to $7,1 million from $7,7 million.

Provisions for impairment losses on loans and advances grew to
$1,36 million from $758 918.

Ndlovu said growth in deposits was suppressed in the first six months of this year.

“The financial sector remained crippled by tight liquidity conditions, high non-performing loans, limited activity on the interbank market, absence of lender of last resort and low savings on the back of low wages and salaries,” he said.

Operating expenses retreated to $9,5 million from $9,9 million last year.

The bank’s non-interest income went down by 6% to $7,63 million from $8,14 million, while total bank deposits were up 9% to
$69,9 million.

In the six month-period, the total comprehensive income increased by 3% to $680 000 from $658 000 in June 2012. Ndlovu said the measures introduced in the banking sector would impact negatively on the bank, but it hoped that technology would cushion the bank forward.

“While certain measures introduced in the banking sector may, in the short to medium term, negatively impact on the bank’s income, the bank is mindful of this challenge, but is confident that a growing deposit base, deepening product offering and investing in modern delivery channels will go a long way in ensuring favourable performance in future,” Ndlovu said.

He said in the first half of the year the bank opened a branch in Mutoko and would open another branch in Mvuma.

2 Responses to POSB reports half year loss

  1. Rigel August 29, 2013 at 1:33 pm #

    WHAT is ti with government owned companies always in the red

  2. nikuv August 29, 2013 at 3:32 pm #

    rigel the problem with govt owned companies is that they are run by inept people who are directors or otherwise because of political affiliation. as such these managers do not make any policy decision but are controlled like robots. they also pander to the whims of their bosses who will have given them the valuable job in this environment. look at them from the post independence era and see how they got to where they are today and who has been at the helm. its plain nepotism and corruption to say the least.

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