HARARE, August 26 (The Source) – State owned bank POSB reported a 24 percent decline in half year profit to $4,17 million on the back of high operating costs driven by a push to broaden its product range.
Operating expenses increased by 16 percent to $13 million in line with business growth. During the period under review the bank introduced mortgage financing and began to participate in the property market.
Interest income increased by nine percent to $7,19 million from $6,57 million in the prior year, attributed to growth of the loan book and treasury investment portfolio while non-interest income was up 17 percent to $12 million from $10,35 million.
Total bank deposits grew by 15 percent to $107 million from $93,6 million. The bank opened a new branch in Chipinge bringing the total number of branches to 35.
Total assets increased by 11 percent to $148 million from $133,7 million in December 2015.
Meanwhile, Metbank reported an after tax profit of $290 000 in the six months to June from a loss position of $130 000 last year.
Operating costs were down 20 percent from $5,6 million to $4,5 million as the company pursued cost cutting measures.
Interest expense at $4,1 million during the six month period under review almost doubled from $2,1 million while Interest income grew marginally from $4,2 million to $4,7 million.
The bank’s loan book witnessed a decline from $28,6 million as at December 31 to $13,2 million as at 30 June 2016.
The bank completed a restructuring exercise that resulted in the conversion of current liabilities amounting to $5,1 million into equity.
Deposits grew 17 percent $38,8 million to $45,4 million in the six months to June.