Online Reporter
Business Reporter
People’s Own Savings Bank (POSB) says it is confident of delivering a resilient performance in the second half of 2026 as it grows its core business, diversifies revenue streams and maintains disciplined cost management to protect profitability.
POSB board chairman, Mr Kenias Mafukidze, in the bank’s half-year results to June 2026, said the institution’s strong capital position and sound asset quality provided a solid foundation for navigating the operating environment and pursuing sustainable growth.
He also said the bank remained focused on advancing financial inclusion, with its strategy centred on expanding access to financial services and strengthening its digital banking capabilities.
POSB said it would continue to leverage innovation, prudent risk management and operational excellence as it seeks to strengthen its resilience and deliver sustainable value to stakeholders.
The bank’s focus on productive sectors is also expected to position it to benefit from increased economic activity in agriculture, mining, manufacturing and tourism, while its digitalisation drive should help broaden access to banking services.
Mr Mafukidze said the bank remained committed to balancing growth with risk management as it navigates the changing monetary and regulatory environment during the remainder of the year.
“POSB remains confident that the bank is well positioned to deliver a resilient performance in the second half of 2026. Against this backdrop, the bank will continue to support national development by expanding access to financial services, strengthening its digital banking capabilities, promoting financial inclusion and supporting productive sectors,” said Mr Mafukidze.
Looking at the broader economy, Mr Mafukidze said Zimbabwe was expected to remain on a positive growth trajectory in 2026, driven by continued macroeconomic stability, improved agricultural output, sustained mining activity, growth in manufacturing and tourism and ongoing infrastructure development.
These developments come as POSB recorded a 42 percent decline in net profit to ZiG108.48 million for the six months to June 2026, down from ZiG187.42 million recorded during the corresponding period in 2025, despite maintaining strong liquidity, capital adequacy and asset quality.
The bank’s net operating income declined by 9 percent to ZiG 659.47 million, from ZiG723.96 million in the comparative period, reflecting the adverse impact of regulatory and monetary policy measures on non-funded income.
Operating expenses, however, increased modestly by 3 percent to ZiG 550.99 million, up from ZiG 536.53 million, mainly due to business expansion initiatives.
POSB said the marginal increase in costs demonstrated continued discipline in managing its operating expenses despite the challenging environment.
Asset quality remained sound during the period, with the non-performing loans (NPL) ratio at 2.09 percent, comfortably below the regulatory threshold of 5 percent.
The bank also maintained a strong liquidity position, with its liquidity ratio standing at 72 percent against the regulatory minimum of 30 percent.
Capital adequacy remained equally robust at 36.56 percent, significantly above the regulatory minimum of 12 percent, providing the bank with a strong buffer to withstand potential shocks while supporting future growth.
