POSB CEO bows out with $1,6 billion profit

THE outgoing chief executive officer (CEO) of POSB Bank Admore Kandlela on Monday marked his departure by delivering $1,6 billion net profit for the half-year ended June 30, 2022.

The mass market lender paid out $145 million in dividend to the government for the year ended December 31, 2021.

POSB’s cheque was delivered to the Finance and Economic Development ministry at the annual general meeting (AGM), where Kandlela’s departure was among the highlights.

Kandlela, who has led the mass market lender — with one million customers for 19 years — will leave the bank at the end of October.

His departure is in line with statutory provisions limiting the tenure of State CEO to a maximum of 10 years.

At Monday’s AGM, the top banker received a flood of praises from government and the POSB board for serving the financial institution “honestly, professionally and diligently”.

Government controls 100% shareholding in the business, which is currently undergoing processes to open up its ownership to the private sector under a privatisation programme.

The POSB board was granted authority to pay Kandlela two months gratuity for ever year served.

But before chairperson, Israel Ndlovu delivered the message, the bank announced that profits for the half year to June 30 rocketed to $1,6 billion, compared to $347 million during the prior comparable period.

POSB reported a $1,4 billion positive variance to its budget during the period, according to chief finance officer, Garainesu Changunda, who attributed it to a stricter cost containment regime.

“The bank achieved $1,6 billion in net profit during the half-year to June, from $347 million in 2021, ” Changunda told the AGM.

“The bank is adequately capitalised. The capital position is strong, and it will provide us with funding to support our growth aspirations. Our capital is well above the industry average,” Changunda added.

Deposits improved to $6 billion during the period, compared to $3,6 billion previously, according to Kandlela.

He attributed the rise to improved civil service salaries among several factors.

Ndlovu, who also presented an update on POSB’s privatisation, said the board had exercised its discretion to come up with a commensurate gratuity.

“Mr Kandlela is due to retire as CEO of the bank in terms of statutory provisions having served the bank for more than 10 years,” he said.

“He joined the bank in 2003, which makes it 19 years. Mr Kandlela retires after loyally and diligently serving the bank. The board agreed that a gratuity be paid to the outgoing CEO subject to the approval of this meeting. The gratuity of two months’ gross salary for every year of service up to a maximum of 10 years has been recommended. It is recommended that Mr Kandlela be paid a gratuity … it will be 20 months’ salary that will be paid,” he said.

A Finance ministry representative said government was impressed by Kandlela’s leadership at one of the country’s oldest banks.-newsday