POSB records ZWG108.48 million profit for first six months

THE People’s Own Savings Bank (POSB) recorded a profit of ZWG108,48 million in the first half of the year amid plans to diversify revenue streams going into the second half of the year.

The Reserve Bank of Zimbabwe (RBZ) Monetary Policy Statement for the first half of 2026 directed all banking institutions to reduce bank charges in a bid to shore up the savings culture. The directives capped withdrawal fees at a maximum of 2% of the total amount withdrawn for both US Dollars (USD) and Zimbabwe Gold (ZiG).

Among other measures, Point of Sale (POS) Swipes were capped at 1.5% of the transaction value with minimum fees completely removed, while account balance checks are now completely free across all banking and mobile platforms.

“Despite the changes in the regulatory environment, the Bank recorded a net profit of ZWG108.48 million, compared to ZWG187.42 million recorded during the corresponding period in 2025. The decline in profitability was largely attributable to the impact of monetary policy measures introduced during the first half of 2026, which adversely affected non-funded income,” POSB said in its Half Year’s report for the period ended June 30, 2026.

Notwithstanding this, the Bank maintained strong liquidity, capital adequacy and asset quality, underscoring the resilience of its business model and balance sheet.

Net operating income declined by 9% to ZWG659.47 million, from ZWG723.96 million in the comparable period, reflecting the impact of monetary policy regulations on the Bank’s non-funded income.

Operating expenses increased modestly by 3% to ZWG550.99 million, from ZWG536.53 million, largely driven by business expansion initiatives, with the marginal increase demonstrating continued cost discipline.  Asset quality remained strong, with the non-performing loans (NPL) ratio maintained at 2.09%, well below the regulatory threshold of 5%.

Liquidity remained robust, with a liquidity ratio of 72%, comfortably above the regulatory minimum of 30%, while capital adequacy stood at a healthy 36.56%, significantly exceeding the regulatory minimum of 12%, reflecting the Bank’s strong capital position and financial resilience.

“The Board remains confident that the Bank is well positioned to deliver a resilient performance in the second half of 2026. The Bank will focus on growing its core business, diversifying revenue streams and maintaining disciplined cost management to preserve profitability,” added POSB.