POSB net income at $2,3mln in Q1

POSB net income at $2,3mln in Q1

HARARE, May 31 (The Source) – The People’s Own Savings Bank (POSB) has reported a net profit of $2,34 million for the first quarter to March 31, driven by higher mobile transactions.

Chief executive Admore Kandlela said at the bank’s annual general meeting that the bank handled mobile network operations transactions of $9,3 million in the quarter, compared to $418,000 in the whole of last year as Zimbabwe grappled with a banknote shortage which led to an increase in the use of mobile money.

The bank holds a total of $38 million Treasury Bills.

Total assets increased to $170,39 million during the quarter from $164,3 million in the full year. Net interest income ratio marginally advanced to 74 percent from 73 percent in December 31, 2016.

Core capital rose five percent to $43,56 million from $41,52 million.

The bank’s mortgages portfolio, which was launched last year with a 12 percent annual interest rate, doubled to $682,600 from $348,600 in December.

Loans were largely flat at $72,71 million.

POSB paid a total dividend of $2,4 million to its shareholders for the year ended December 31 on a net income of $9,68 million, which will be converted to equity.

“The Minister (of Finance, Patrick Chinamasa) has decided that the dividend declared should be converted into additional equity,” said an official representing Chinamasa at the meeting.