POSB forges ahead with privatisation project
THE People’s Own Savings Bank (POSB) says engagements on the resumption of the privatisation project are underway following guidance by the new shareholder, Mutapa Investment Fund.
Government transferred 100 percent of its stake in POSB to Mutapa Investment Fund (MIF), an investment vehicle established under the Sovereign Wealth Fund of Zimbabwe Act Chapter 22:20.
All the shares were transferred to the new shareholder during the last quarter of 2023.
To date, POSB remains well-capitalised with a capital adequacy ratio of 57 percent and 61 percent as at December 31, 2023 and June 30, 2024, respectively.
Under the on-going economic reforms drive, most of the parastatals will either be privatised or capitalised to be able to perform better and reduce their reliance on State bailouts.
In a statement accompanying the bank’s unaudited financial results for the half year ended June 2024, POSB board chair, Mr Israel Ndlovu said the privatisation project had stalled in the first half of 2024 following its suspension by the Ministry of Finance, Economic Development and Investment Promotion in August 2023.
However, he said changes in the shareholding structure of the bank, with Mutapa taking over have opened a new chapter for the entity.
“We are pleased to report that the new shareholder has given the bank guidance on the way forward,” said Mr Ndlovu without disclosing much detail on the guidance issue.
“In that regard, engagements on the resumption of the project commenced during the second quarter of 2024.”
Meanwhile, Mr Ndlovu said the bank recorded a net profit of ZWG50,76 million from a net profit of ZWG248,31 million recorded in the six months ended June 30, 2023.
“Net operating income for the half year decreased by 30 percent to ZWG471,28 million from ZWG676,85 million achieved in the comparative prior period,” he said.
“Operating expenses decreased by seven percent to ZWG 223,43 million from ZWG239,76 million incurred in the comparative prior period.
“The quality of the loan book remained satisfactory as the non-performing loans ratio closed the first half of the year 2024 at 1,16 percent against the regulatory threshold of five percent and an industry average ratio of 2,17 percent.”
Mr Ndlovu said the liquidity ratio of the bank remained well above the regulatory minimum of 30 percent, closing the period under review at 75 percent.
The bank remained well capitalised with a capital adequacy ratio of 59,80 percent against the regulatory minimum required capital adequacy ratio of 12 percent.
“The board is optimistic that the performance of the bank will remain satisfactory in the second half of the year 2024, attributed to the projected business growth to year end,” he said.
“The bank will also continue to introduce new and innovative products in line with its mandate of promoting financial inclusion.”-chronicle
