LATEST: POSB asks government to be listed on the stock market


The Chronicle

Harare office

The POSB expects the bank’s proposal to list the stock exchange to be finalized and ready for Cabinet review in the second half of 2021, company executives have revealed.

The bank also expects the identification of ideal investors to be finalized and presented to Cabinet during the same period. The POSB is one of the public entities designated by the government for partial privatization.

In accordance with the privatization plan, the bank’s transactional advisers, KPMG Advisory Services (Zimbabwe), have already published the final initial report, which was subsequently approved and adopted by the Technical Committee (TC).

The draft due diligence and evaluation reports have since been presented to the technical committee for review, according to the acting chairman of the board, Mr. Israel Ndlovu.

“The identification of ideal investors and the proposals for listing the Bank on the stock exchange are expected to be finalized and ready for Cabinet review in the second half of 2021,” Ndlovu said.

Meanwhile, declining income and a monetary loss caused POSB to experience a loss of $ 435 million in inflation-adjusted terms for the year up to December 2021, the public bank revealed in its report. annual report 2020.

The loss is; however, lower than the loss of $ 600 million recorded the previous year comparative. The period under review saw the bank’s interest income fall 36% to $ 218 million.

The fair value gain on investment property was also significantly lower, down 61% to $ 107 million.

Net operating income for the year declined 17% in inflation-adjusted terms to $ 1,267 billion for the year 2020 due to below-inflation returns on financial assets.

The only significant revenue growth was from fees and commissions, which rose 48% to $ 987 million.

The NPL ratio also improved significantly, from 5% as of December 31, 2019 to 0.94% as of December 31, 2020.

According to the Bank, this demonstrated a significant improvement in the quality of the Bank’s loan portfolio.

While POSB was still profitable at $ 491 million at the operational level, a monetary loss of $ 926 million put the bank in a loss position of $ 435 million.

Mr. Ndhlovu said the loss reported by the Bank in inflation-adjusted terms “reflects the impact of hyperinflation on monetary assets which formed a significant part of its balance sheet given the nature of the Bank’s business. “.

In other measures, POSB’s balance sheet size increased by 10.81%, from $ 2,879 billion in 2019 to $ 3,190 billion in 2020. This was mainly attributed to an increase in deposits of 16 , 02% after taking into account the effects of inflation, according to the managing director. Mister Admire Kandlela.

Mr Kandlela, however, described the year 2020 as “very difficult from a macroeconomic and business perspective”, in the midst of the Covid-19 epidemic.

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