By Tinomudaishe Muzanenhamo
The People’s Own Savings Bank has reported a strong financial performance for 2025 posting a 19% increase in net profit as Zimbabwe’s banking sector navigated a tightening monetary environment and ongoing economic reforms.
According to its latest abridged financial results, the bank recorded a net profit of ZWG275.02 million up from ZWG231.65 million in 2024.
Total assets also grew significantly by 41% to ZWG3.83 billion reflecting what the institution described as “resilience in a volatile and dynamic operating environment”.
The bank said key revenue streams showed strong growth with net interest income more than doubling to ZWG399.10 million while fees and commission income rose by 96% to ZWG1.05 billion.
“Key revenue streams including interest income, fees and commissions registered significant growth… resulting in net profit increasing by 19%,” the bank said in its report.
Deposits also rose by 42% to ZWG1.94 billion supported by targeted mobilisation strategies aimed at expanding the customer base.
The People’s Own Savings Bank maintained strong liquidity and capital buffers, with its capital adequacy ratio closing the year at 38.96% well above the regulatory minimum of 12%.
Its liquidity ratio stood at 78% more than double the required threshold underlining the bank’s capacity to meet financial obligations.
The bank’s chairman, Kenias Mafukidze,said Zimbabwe’s economy remained on a growth path despite global headwinds with government revising its 2025 GDP forecast upwards to 6.6%.
“Zimbabwe’s recovery outperforms regional growth forecasts for Sub-Saharan Africa,” he said, pointing to strong performance in agriculture and mining sectors.
He added that tight monetary policy by the Reserve Bank of Zimbabwe had helped stabilise inflation and the exchange rate.
The bank also highlighted progress in its three-year Transformation Strategic Plan which aims to turn it into an AI-powered digital institution.
“We have laid important groundwork toward delivering an AI-powered digital bank,” the report said citing ongoing upgrades to core banking systems, enhanced cybersecurity and expanded digital channels.
Initiatives such as ATM upgrades, solar-powered service centres and the rollout of Starlink connectivity were also introduced to improve service delivery and operational resilience.
As part of its financial inclusion strategy, the bank launched an US$8.7 million facility to support access to solar energy and internet connectivity for schools, households and small businesses.
It said the initiative was designed to “expand affordable and sustainable energy solutions” while improving digital access, particularly in rural areas.
Despite the strong performance, operating expenses rose sharply by 85% to ZWG1.16 billion largely due to expansion and transformation initiatives.
However, the bank said it had maintained “effective cost management strategies to preserve profitability”.
The bank expressed optimism about 2026, with economic growth projected at around 5%, supported by continued recovery in key sectors.
“The People’s Own Savings Bank remains confident in the country’s prospects and is committed to executing its digital transformation strategy,” the chief executive, Garainashe Changunda, said.
