POSB privatisation heads to Cabinet

THE People’s Own Savings Bank (POSB) says identification of investors under the state-owned entity’s partial privatisation bid will be complete and ready for government approval in the second half of the year.
POSB is one of the state entities that have been earmarked for partial privatisation by the government. According to the bank’s 2020 financial statement, the draft due diligence and valuation reports have already been completed.

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“At the time of preparing this report the draft due diligence and valuation reports were in the process of being presented to the technical committee for consideration.
“It is anticipated that the identification of the ideal investors and proposals for the listing of the bank on the stock exchange will be finalised and ready for consideration by Cabinet in the second half of the year 2021,” POSB chairperson, Israel Ndlovu, said in the financials.

Meanwhile, POSB narrowed its deficit from $600,75 million in the previous year to $434, 94 million.
In its inflation adjusted report for 2020 the bank said in historical terms it recorded a net profit of $352,38 million for the year in question.
“The loss reported by the bank in inflation adjusted terms reflects the impact of hyperinflation on monetary assets which constituted a significant portion which constituted significant portion of its balance sheet considering the nature of the business of the bank,” Ndlovu said.

Net operating income for the year declined by 17 percent to reach $1,267 billion due to below inflation yields on financial assets, he added.
Operating expenses decreased by four percent to $775 million from $807 million in 2019 which was attributed to management’s commitment to keep costs under control.
Non-performing loans ratio improved from five percent as at December 31, 2019 to 0,94 percent as at December 31, 2020.

Total assets increased by 11 percent to $3,190 billion from $2,879 billion.
The liquidity ratio of the bank was at 67 percent.
“… confirming that the bank is highly liquid and has the capacity to honour its obligations,” the chairperson said.
Capital adequacy of the bank was reported at 58 percent against the minimum regulatory ratio of 12 percent.

Ndlovu said the general economic prospects indicated that the economic growth trend would be positive in the outlook period.
“As procurement of vaccines for the containment of the coronavirus show promise and the vaccines are now being deployed, coupled with measures adopted by the government as articulated in the National Development Strategy 1, there is hope that 2021 will bring a more certain, prosperous outlook for business,” he said.
newsdesk@fingaz.co.zw

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