POSB posted an $11.36 million profit over the period ending December 2017, up from $9.68 million in 2016 at the back of introducing new products and massive digitisation of its business model.
The bank successfully introduced Zimswitch acquiring services to customers which resulted in widening of the Bank’s income streams while enhancing service delivery and competitiveness.
Presenting financial results for the period under review, POSB board chair Matilda Dzumbunu said the banks positive performance was largely attributed to the introduction of new products and delivery channels as well as full utilisation of existing products.
“The bank recorded a profit of $11.36 in the year under review, a significant improvement from a profit of $9.68 million recorded in 2016. This positive performance is largely attributed to introduction of new products and delivery channels as well as full utilisation of existing products.
“Furthermore, the bank continued to implement cost containment as well as revenue generation of these strategies resulted in a 6 percent growth in net operating income whilst operating costs increased by only 1 percent,” said Dzumbunu.
“The strong deposit book enabled the bank to underwrite more lending and treasury business as evidenced by the 28 percent growth in the loan book and 40 percent growth in treasury investment book.
“The bank’s positive performance is largely dependent on deposit mobilisation and business development.
The bank also continues to benefit from its wide branch network and agency partnerships.”
Meanwhile, the bank also successfully integrated with NetOne to enable bank to wallet and wallet and wallet transactions in order to provide convenience and offer more banking options to its customers.
“In Zimbabwe, we are expecting that digitisation of retail banking products will strongly contribute to financial inclusion. Internet banking, mobile banking, SMS services, card and mobile banking are some of the technologies that are radically changing the way traditional financial services are modernising our systems, or data Centres and servers in order to address our clients’ needs,” she added.
She also said the bank will continue to manage cyber security risks and frauds which if not proactively addressed could aggravate financial exclusion. In light of this, the bank said it will educate our clients to make better decisions, considering risk involved and protect their personal data and financial resources when facing these digital technology services.
“At POSB, we embrace digitisation and the fact that it is a very effective tool to reduce costs of processes and to translate those savings into better products for low income clients.”