POSB plots three-year growth plan
THE People’s Own Savings Bank (POSB) is set to implement a three-year transformational strategic plan to grow the business by enhancing customer experience and improving operational efficiency.
In a statement attached to POSB’s financial results for the year ended December 31, 2024, board chairperson, Kenias Mafukidze, said the bank was committed to ensuring that its conduct is within local and international best practices.
“Looking forward, the bank is set to implement a three-year transformational strategic plan covering 2025 to 2027,” he said.
“The plan focuses on transforming business growth, enhancing customer experience, improving operational efficiency and reinforcing corporate citizenship.”
He said key strategic initiatives include shifting to a customer-centric approach from a product-centric stance, repositioning the bank’s brand in the market and transitioning to a more agile and non-linear structure from a vertically-integrated business model.
Mafukidze said the initiatives also included developing artificial intelligence-powered capabilities to drive innovation and implementing comprehensive culture change initiatives.
“Addressing macroeconomic challenges, including price and exchange rate stability, remains crucial,” he said.
In 2024, the bank registered a net profit of ZiG231,65 million, owing to low foreign exchange gains compared to the prior year.
In 2023, the bank registered a net profit of ZiG288,01 million.
During the period under review, net operating income decreased by 0,7% to ZiG1,05 billion from ZiG1,06 billion in the prior year.
Operating expenses increased by 17% to ZiG627,29 million during the period under review, from ZiG534,29 million in the prior year.
“The bank continued to implement effective cost management strategies to maintain profitability. Total assets grew by 104% from ZiG1,33 billion in 2023 to ZiG2,72 billion by December 2024,” POSB chief executive officer Garainashe Changunda said.
“Additionally, total deposits increased by 104% from ZiG672,59 million in 2023 to ZiG1,37 billion by December 2024 as a result of aggressive deposit mobilisation during 2024, which drove business growth. The capital adequacy ratio stood at 56,65%, exceeding the prescribed minimum regulatory ratio of 12%, enabling the bank to meet all prudential lending guidelines.”
In the outlook, he said the economy was poised for a strong rebound in 2025, driven by the La Nina effect, which was expected to boost agricultural productivity and help the country to surpass the region’s projected economic growth rate.
“As such, the People’s Own Savings Bank remains positive about the country’s prospects,” Changunda said.
“The bank’s digital transformation strategy will see significant investment in digital platforms designed to drive business growth, enhance customer experience and reposition its brand for the future.”-newsday
