HARARE, August 24 (The Source) – Zimbabwe’s state owned bank POSB reported an 8 percent decline in after-tax profit to $3,83 million in the six months to June from $4,17 million in the comparable period last year, as the bank’s revenue took a dip.
Net interest income decreased by 8 percent from $7,19 million last year to $6,62 million, while income from fees and commissions increased by two percent to $12,29 million. As a result, net operating income was down from $17,3 million to $17,2 million.
Cost to income ratio increased slightly to 77 percent from 76 percent, in line with operating expenses which were up marginally from $12,08 million in the same period last year, to $12,29 million.
Deposits increased by 15 percent to $132,4 million as loans and advances increased to $74,4 million from $72,9 million in the same period last year. This resulted in the bank’s loans to deposit ratio declining to 51 percent from 58 percent as at December last year.
Total assets rose by 15 percent to $188,75 million from $164,33 million recorded in the same period last year, driven by a significant growth in treasury business.
The bank holds treasury bills (TBs) worth $136,3 million, up from $119,01 million previously. It reported a capital adequacy ratio of 31,79 percent which is far above the central bank minimum requirement of 12 percent.