COMPANY PROFILE

FOR

PEOPLE’S OWN SAVINGS BANK (POSB)

2

CONTENTS

1. Business, Administrative & Contact Information 3

2. Introduction 3

3. Strategy 4

4. Business Concept 5

5. Shareholding Structure 10

6. Board Of Directors, Management And Employees 11

7. Industry Environment 15

8. Financial Performance 23

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1. BUSINESS, ADMINISTRATIVE&CONTACT INFORMATION

a. Business Name: The People’s Own Savings Bank (POSB)

b. Business Type: Savings Bank

c. Company Registration Number:POSB ACT

d. Tel: +263 4 793 831-7

e. Fax: +263 4 708 537/730 971

f. E-mail: marketing@posb.co.zw

g. Physical Address: Causeway Building, 3rd St/Central Ave, Harare

h. Postal Address: P. O. Box CY1628, Causeway, Harare

2. INTRODUCTION

a. Company History

The Peoples Own Savings Bank (POSB), formally the Post Office Savings Bank was established in

December, 1904 and commenced its operations through the Post Office branch network. In April, 2001,

the People’s Own Savings Bank of Zimbabwe Act {Chapter 24:22}, was promulgated,

establishing the Savings Bank as a corporate entity. This Act widened the scope of the bank to

be ableto a wide range of financial products.

b. Mandate

POSB’s core functions are derived from the terms of reference in the POSB Act and provide clarity on

the activities that the organisation must undertake as detailed below:

Carry on the business of a savings bank, that is to say, the acceptance of deposits that are

repayable with interest, to or for the benefit of the depositors concerned;

Provide banking and financial services for the people of Zimbabwe;

Encourage saving by the people of Zimbabwe; and

Grant loans and advances secured by investments held by the Savings Bank

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3. STRATEGY

a. Vision Statement

“To be a world class Savings Bank catering for all”

b. Mission Statement

“A savings bank which mobilizes deposits and provides a broad range of appropriate, quality, accessible

and affordable financial services”

c. Values

The following are the values for the POSB and their supporting definitions:

Integrity - Being trustworthy, accountable, dependable and honest in all our dealings.

Innovation - Ability to change for the better, generate new ideas and improve the way we

serve the customer.

Commitment – Ability to engage oneself responsibly and exceed set standards and

expectations.

Responsiveness – Ability to timeously and proactively attend to customer and other

stakeholder needs.

d. Business Goals & Objectives

To grow deposit base from 76M to 150M by December 2018.

To achieve 1 million customer accounts by December 2018.

To ensure 70% of the population is aware of POSB’s products and services by December 2018.

To increase revenue per head from $4000 to $10,000 by 2018

To achieve 100% real time agency transactions by 2018.

To achieve 100% POSB geographical coverage by 2018.

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To improve customer’s total processing time from arrival to departure to 10 minutes by Dec

2018.

To improve employer initiated training from 4 person days per annum to 10 person days/half

year by Dec 2018.

To increase employee engagement index from 67% to 100% by Dec 2018

To achieve 100% compliance with all statutory and regulatory requirements by Dec 2018.

To move from level 1 to level 4 of the corporate governance progression matrix by 2018.

e. Economic Intent

A key focus goal over the next five years that will be pursued by POSB in the realization of its vision is:

“By 2018 POSB will be a well-capitalized, profitable and financially inclusive savings bank serving at

least 10% of the population.”

4. BUSINESS CONCEPT

Our business consists of a myriad of products and services designed to ensure that customers banking

needs are met.The following are our products and services:

4.1. PRODUCTS AND SERVICES

a. Transactional Accounts

Individual Account

NSSA Account

Pensioners Account

Esteem Personal Account

Club Account

Corporate Account

Church Account

School Account

SME Account

Agribusiness Account

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b. Instant Banking Accounts

People’s Choice Account

Youth Account

c. Savings Accounts

Smartsave Account

Easysave Account

Juniorsave Account

d. Investments

Certificates of Deposits (CODs)

Call Account

e. Personal Loans

Salary-based loan

Pensioners Loan

Employer Guaranteed Loan

Mutually Guaranteed Loan

Personal Overdraft

Deposit-backed loan

f. Corporate Loans

• Corporate loans

• Overdraft facilities

• Structured and debt financing

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• Order Financing

• Bridging Finance

g. Microfinance

Employer-backed loan

School fees loan

Benevolent loan

Emergency Medical Express loan

Sole Proprietors’ Working Capital

Group Working Capital Loan

Order Finance/Invoice Discount

Agro-Dealers loan

Agri-Business loan

Asset-Finance loan

h. SME& Agribusiness Loans

SME loan

Agribusiness loan

Schools Development Loans

i. Mortgage Finance

Ordinary Mortgage loan

Refinance/ Equity Release

j. International Banking Products

Structured Finance

Bank drafts

Telegraphic Transfers

Off shore loans

Clean Collection

Letters of Credit

Documentation Collections

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Guarantees

Issuance of Custom Declaration Forms (CD1s, CD3s, TR1s, TR2s and GSD)

Exchange Control applications

k. Other Services

International Remittances – Western Union, Moneygram and Mukuru.com

Domestic Remittances – Ecocash, Telecash and One-wallet

Bill Payments – ZESA Prepaid Electricity, DSTV, Telone and City of Harare Utility bills

Paynet Salary Processing

RTGS transfers

l. Delivery Channels

35 POSB Branches

Agency Banking Network – Zimpost Offices and Meikles Financial Services (TM and Pick n Pay

Supermarkets)

Access to 400 Zimswitch ATMs

Access to at least 5000 Zimswitch POS Machines

CellBank – Cellphone Banking Platform

Internet Banking Platform

m. Esteem Banking

This is the private banking wing of the Bank which serves high value customers with all the

bank’s products and services an extra mile of convenience.

4.2 DEPARTMENTS AND CORE FUNCTIONS

POSB has nine (9) departments whose functions are detailed below:

a. BANKING OPERATIONS

To interpret and operationalize approved strategies and policies to ensure business growth,

profitability and optimal service delivery to customers.

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b. FINANCE AND ADMINISTRATION

To provide financial information for decision making and manage the bank’s procurement and

administration functions.

c. RISK & COMPLIANCE

To oversee the bank’s enterprise-wide risk management function through the development,

implementation, execution and monitoring of risk management programs, policies and

strategies to minimize risk in line with risk tolerance levels, regulatory requirements and best

practices.

d. TREASURY, CORPORATE AND INTERNATIONAL BANKING

To develop and implement sound asset-liability management strategies and manage

international transactions and business relationships.

e. HUMAN RESOURCES

To develop and implement human resources policies and strategies, including the provision of

advisory services.

f. INFORMATION AND COMMUNICATION TECHNOLOGY

To provide and maintain the information technology required to support the bank’s strategies.

g. MARKETING & PUBLIC RELATIONS

To manage the bank’s marketing function and corporate communications.

h. INTERNAL AUDIT

To examine and evaluate the adequacy of the bank’s systems of internal control to improve the

bank’s operations.

i. CORPORATE AND LEGAL SERVICES

To provide company secretarial and legal services to the bank to ensure compliance with

relevant laws and governance guidelines.

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4.3 SERVICE PLEDGE

Weare committed to deliver a high standard of customer service. We recognize that there will always

be room for improvement and as we establish new and better ways of working, we will formalize the

processes and procedures and include them in our customer service charter.

Our staff is committed to:

a. Serve all customers promptly. Qualified staff is available to provide service when required.

b. Provide you with friendly and helpful service whenever you deal with us. We will endeavor to

provide updated, comprehensive and courteous service through our multi-channel or touch

points.

4.3 BUSINESS PREMISES

POSB has a branch network of 35 branches across all the political provinces of the country. The head

office is situated at Causeway Building, Corner 3rd Street and Central Avenue, Harare, Zimbabwe.

5. SHAREHOLDING STRUCTURE

POSB is 100%-owned by the Government of Zimbabwe.

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6. BOARD OF DIRECTORS, MANAGEMENT AND EMPLOYEES

6.1 BOARD OF DIRECTORS

The following is a list of POSB Board Members:

Matilda Dzumbunu (Chairperson)

Non-Executive

Israel P. Ndlovu

Non-Executive

Nomusa C. Chindomu

Non-Executive

Ceacilia Nyamutswa

Non-Executive

Monica Sarudzai Mureriwa

Non-Executive

Ignatius Mvere

Non-Executive

Onias Jambwa

Non-Executive

Admore Kandlela (CEO)

Executive

Garainashe Changunda Executive

6.2 EXECUTIVE MANAGEMENT

Admore Kandlela: Chief Executive Officer

Admore has strong managerial background with senior level local /international experience and cross

sector exposure. He possesses good strategic appreciation and vision, ability to build and implement

sophisticated plans with a proven track record explicitly supporting business needs. He is self-driven

and self-reliant, sets aims and targets and leads by example using a collaborative approach with good

12

interpersonal skills to engage, motivate and encourage others through change. His academic

qualifications include MBA in Responsible Banking (IEB, WSBI, LSE), Masters in Business Administration

(NUST), BSc Economics Hons, FBC (Sierra Leone) and NID Computer Studies (Harare Polytechnic

College). He is also a Fellow of the Institute of Bankers (FIOBZ). Admore has held various positions in

business including Risk Manager (Agribank), Chief Economist (Agricultural Finance Corporation), Senior

Economist (Agricultural Finance Corporation), Senior Economist (Post & Telecommunications

Corporation), Project Analyst (SEDCO). He was appointed CEO in March 2003.

Garainashe Changunda: General Manager – Finance and Administration

Garainashe is a qualified Chartered Accountant with over nineteen years of

experience in banking, financial management and advisory services. He holds a Bachelor of

Accounting Science (Hons) and a Master in Business Administration degrees from the University of

South Africa and National University of Science and Technology respectively. He is a member of the

Institute of Chartered Accountants in Zimbabwe (ICAZ) and Public Accountants and Auditors Board

(PAAB).

Wilbert Fungura: General Manager -Risk & Compliance

Wilbert holds a Business Studies Honours Degree (1988) and a Master of Business Administration

(1999) obtained from the University of Zimbabwe. He also holds a Master of Science (Leadership &

Change Management) obtained from Leeds Metropolitan University (UK) in 2011. In 2000 he was

adjudged the best qualifying Institute of Bankers Diploma student and best Management Accounting

student for the same programme resulting in him being awarded the Reserve Bank of Zimbabwe and

Commercial Bank of Zimbabwe prizes respectively. He is thus an Associate member of the Institute of

Bankers of Zimbabwe. In 2001 he qualified for the Diploma in Credit Management resulting in him

being elected an Associate member of the Institute of Credit Management in Zimbabwe. Wilbert also

holds several certificates in risk management, project evaluation, loan portfolio management,

information technology and business consultancy.

He has many years of experience in the business world. He started his career as a Research

Enumerator with the Zimbabwe Institute of Development Studies (ZIDS) to carry out a UNESCO funded

project before joining SEDCO in 1989 as a Business Analyst rising through the ranks to become the

corporation’s Enterprise-wide Risk Manager. In May 2004 Wilbert joined POSB as the General Manager

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in charge of Credit Operations before he was moved to his current position of General Manager in

charge of Risk and Compliance.

During his career, Wilbert was engaged as a consultant to carry out evaluation projects for NISSI

Microfinance and Women Development and Savings Credit Union (WDSCU) by HIVOS, a humanitarian

non-governmental institution. He was also engaged as a consultant by Gender and Rural Development

(GERUDE) Consultants to evaluate projects for People Living with HIV. Apart from these projects,

Wilbert was also engaged as an Examiner by the Southern Africa Institute of Marketing (SAIM).

Hope Farayi Marere: General Manager - Banking Operations

Hope is a graduate of the National University of Science & Technology and holds a Bachelor of

Commerce (Honours) degree in Finance. She also holds a Master of Business Administration degree

from the Management College of Southern Africa (MANCOSA) and Certificate in Bank Card

Management from VISA International.

Hope has years of experience in banking having worked for an International bank. She has steered

POSB in various capacities as Card Centre Manager, Private and Electronic Banking Manager and now

heads the Banking Operations.

Malvern Kujeke: Human Resources Executive

Malvern has vast experience in Human Resources Management. He joined Lonrho Zimbabwe in 1987 as

a Graduate Management Trainee before being appointed Personnel Officer for Turnpan Zimbabwe in

1988. He moved on to ZIMOCO Passenger Divisions in 1989 where he was the Human Resources

Manager and subsequently the Personnel & Training for ZIMOCO Passenger and Commercial from

February 1992 – January 1995. He joined Colcom Foods as Group Human Resources Manager in 1995

until he moved to Universal Merchant Bank (Unibank) in February 1998 until January 2001 when he

joined Zimbabwe Development Bank in the same capacity. He joined POSB in October 2004 as Human

Resources Manager until he was elevated to his current position in 2009.

He holds a BSc Politics and Administration degree obtained from the University of Zimbabwe and a

Master’s Degree in Leadership & Change Management from Leeds Metropolitan University in addition to

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an IPMZ Diploma.Malvern has keen interests in the music industry and is the current Chairperson of the

Zimbabwe College of Music Board of Trustees.

Loice Ngulube – I.T Executive

Loice holds a Bachelor of Business Studies & Computing Science from the University of Zimbabwe. She

is a Certified Information Systems Manager and Information Systems Auditor, (CISM) & (CISA) from

ISACA, having graduated as the best student in East Africa 2007. She is also certified as information

Systems Security Professional, (CISSP). She holds a certificate from the Institute of Bankers Zimbabwe,

is ITIL Certified and PRINCEII Certified. She has a wide experience in ICT in finance and education

across the region and is a Professional member of the Computer Society of Zimbabwe.

Izasi Mukonyerwa: Head Internal Audit

Izasi is the Internal Audit Manager. He has 7 years’ experience in Auditing. Izasi holds the following

qualifications: BSc. (Hons) Degree in Applied Accounting, Certified Chartered Accountant (ACCA),

Certified Internal Auditor (CIA) and MBA (Banking & Finance).Izasi is also a member of the Institute of

Internal Auditors (IIA) and ACCA International.

Dorothy Mapimhidze: Company Secretary and Legal Adviser

Dorothy is corporate lawyer duly registered to practice in Zimbabwe as a member of the Law Society of

Zimbabwe. She joined POSB as Company Secretary and Legal Advisor in 2012.

She has been in-house corporate counsel with company secretarial responsibilities since 2004 which

exposure has been in public listed entities as well as private companies. Prior to working in the

corporate sector, she had briefly worked in private practice in a law firm. She had a lengthy stint in the

civil service where she worked in various capacities as a public prosecutor/state counsel and legal

advisor under the Attorney General’s Office. She holds an ACCA Diploma in Financial Management

(2005), a Bachelor of Laws Degree (1988) and a Bachelor of Law Hons Degree (1987) from the

University of Zimbabwe. She heads the Bank’s Corporate and Legal Services Department.

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Lawrence Munashe Kupika – Marketing Manager

Lawrence holds a Bachelor of Business Studies (Marketing) degree (University of Zimbabwe), Master of

Science Marketing (NUST), Executive MBA (NUST) and Certificate in Banking (IOBZ). He is a Fellow of

the Marketers Association of Zimbabwe and is a marketing enthusiast who has widespread exposure

having held numerous marketing positions in the business world. Prior to joining POSB, Lawrence has

held senior marketing, customer experience and marketing communication roles in Telecel Zimbabwe,

Powertel Communications (Pvt) Ltd, Department of Trade and Industry (SA), POSB, Art Corporation

(Pvt) Ltd and Probe Market Research (Pvt) Ltd.

6.3 EMPLOYEES

POSB has a total of 495 employees deployed in the different branches and operational divisions. There

is a fair representation gender wise as there is no discrimination on employment, there are equal

chances.

7. INDUSTRY ENVIRONMENT

7.1 COMPETITIVE OVERVIEW

As at 31 March 2018, there were 19 operational financial institutions: 13 commercial banks, 1 merchant

bank, 4 building societies and POSB being the only savings bank. All these 19 financial institutions

compete for the same market for deposits and other products. On the lending division, the competition

is made even more intense due the existence of numerous micro-finance institutions, about 180 of

them. POSB currently holds 17% market share in terms of the total industry customer base of about

4.3million as at 31 December 2017, which is the highest of all the industry players.

7.2 MARKET SEGMENTS

Previously not allfinancial institutions targeted the mass market but of late most of the banking industry

players have launched a move on the masses as this was not a fully exhausted segment of the market

which still has potential as these low income earners are the majority of the country’s population.

However, the masses mainly contribute to numbers but not much value thus the increased and

improved efforts on high value clients and corporates to make up for the value.

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7.3 INDUSTRY TRENDS

The industry continues to grow in all aspects, that is; customer base, value of deposits, loans, assets,

capital and net profit. Profits have more than doubled from 2016 to date. This is largely due to the

sharp surge in the use of electronic banking services and delivery channels as a way of dealing with the

persistent cash shortages in the economy. The following tables show trends for KPIs in relation to

competition:

7.3.1Profitability

Month POSB Banking Sector Mkt Share

Dec-10 3,429,876 37,950,000 9.04%

Dec-11 4,109,555 86,000,000 4.78%

Dec-12 2,512,956 69,230,000 3.63%

Dec-13 (209,365) 4,460,000 -4.69%

Mar-14 433,620 20,470,000 2.12%

Jun-14 (1,570,605) 26,500,000 -5.93%

Sep-14 1,378,725 24,350,000 5.66%

Dec-14 1,010,344 50,840,000 1.99%

Jun-15 1,547,806 43,010,000 3.60%

Sep-15 2,832,121 87,020,000 3.25%

Dec-15 (384,424) 127,470,000 -0.30%

Mar-16 1,681,089 38,440,000 4.37%

Jun-16 2,492,132 67,970,000 3.67%

Sep-16 2,690,280 111,300,000 2.42%

Dec-16 2,812,929 181,060,000 1.55%

Mar-17 2,336,608 50,340,000 4.64%

Jun-17 3,834,206 100,590,000 3.81%

Sep-17 6,854,803 160,730,000 4.26%

Dec-17 11,352,959 241,940,000 4.69%

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7.3.2 Deposits

Month POSB Banking Sector Mkt Share

Dec-10 37,950,249 2,310,000,000 1.64%

Dec-11 51,993,063 3,040,000,000 1.71%

Dec-12 63,810,070 4,410,000,000 1.45%

Dec-13 72,146,670 4,730,000,000 1.53%

Mar-14 74,418,051 4,890,000,000 1.52%

Jun-14 80,400,995 4,960,000,000 1.62%

Sep-14 87,509,743 4,960,000,000 1.76%

Dec-14 84,304,552 5,080,000,000 1.66%

Mar-15 92,957,836 5,290,000,000 1.76%

Jun-15 94,109,266 5,600,000,000 1.68%

Sep-15 100,065,278 5,500,000,000 1.82%

Dec-15 93,684,287 5,620,000,000 1.67%

Mar-16 98,751,863 5,670,000,000 1.74%

Jun-16 107,467,746 5,910,000,000 1.82%

Sep-16 103,640,347 6,140,000,000 1.69%

Dec-16 114,707,241 6,510,000,000 1.76%

Mar-17 118,383,273 6,550,000,000 1.81%

Jun-17 132,453,073 6,990,000,000 1.89%

Sep-17 132,163,592 7,620,000,000 1.73%

Dec-17 159,077,765 8,400,000,000 1.89%

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7.3.3 Assets

Month POSB

Banking

Sector Mkt Share

Dec-10 48,649,738 3,690,000,000 1.32%

Dec-11 65,049,229 4,740,000,000 1.37%

Dec-12 80,599,022 6,120,000,000 1.32%

Dec-13 91,195,760 6,740,000,000 1.35%

Mar-14 93,077,447 6,810,000,000 1.37%

Jun-14 100,746,774 6,900,000,000 1.46%

Sep-14 111,572,797 7,110,000,000 1.57%

Dec-14 105,153,437 7,120,000,000 1.48%

Mar-15 119,982,024 7,190,000,000 1.67%

Jun-15 122,609,472 7,590,000,000 1.62%

Sep-15 129,086,395 7,730,000,000 1.67%

Dec-15 143,476,725 7,830,000,000 1.83%

Mar-16 139,478,615 7,790,000,000 1.79%

Jun-16 148,950,475 8,010,000,000 1.86%

Sep-16 155,693,296 8,250,000,000 1.89%

Dec-16 164,329,311 8,730,000,000 1.88%

Mar-17 173,914,811 8,880,000,000 1.96%

Jun-17 188,753,532 9,650,000,000 1.96%

Sep-17 193,394,319 10,260,000,000 1.88%

Dec-17 226,692,021 11,250,000,000 2.02%

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7.3.4 Net Capital

Month POSB

Banking

Sector Mkt Share

Dec-10 8,069,540 458,000,000 1.76%

Dec-11 11,151,460 512,000,000 2.18%

Dec-12 12,881,814 644,000,000 2.00%

Dec-13 13,546,205 706,000,000 1.92%

Mar-14 12,463,226 909,000,000 1.37%

Jun-14 11,243,872 893,000,000 1.26%

Sep-14 12,840,202 913,000,000 1.41%

Dec-14 13,363,552 926,000,000 1.44%

Mar-15 17,086,306 926,300,000 1.84%

Jun-15 18,669,711 1,040,000,000 1.80%

Sep-15 20,898,348 1,070,000,000 1.95%

Dec-15 42,777,658 1,140,000,000 3.75%

Mar-16 34,498,248 1,160,000,000 2.97%

Jun-16 34,878,707 1,220,000,000 2.86%

Sep-16 37,472,840 1,240,000,000 3.02%

Dec-16 41,208,882 1,340,000,000 3.08%

Mar-17 43,558,826 1,370,000,000 3.18%

Jun-17 45,505,499 1,380,000,000 3.30%

Sep-17 50,250,917 1,430,000,000 3.51%

Dec-17 54,434,966 1,580,000,000 3.45%

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7.3.5 Return on Equity

Month Industry Average POSB

Dec-10 0.57% 42.50%

Dec-11 15.13% 36.85%

Dec-12 9.17% 19.51%

Dec-13 0.51% -1.55%

Mar-14 2.12% -4.59%

Jun-14 2.72% -10.11%

Sep-14 2.54% 1.88%

Dec-14 5.37% 9.37%

Mar-15 0.40% 22.90%

Jun-15 3.26% 29.24%

Sep-15 7.91% 39.68%

Dec-15 10.96% 18.49%

Mar-16 2.79% 4.87%

Jun-16 3.53% 12.00%

Sep-16 8.85% 18.32%

Dec-16 12.64% 23.48%

Mar-17 3.65% 5.36%

Jun-17 6.80% 8.43%

Sep-17 11.15% 13.64%

Dec-17 15.48% 20.86%

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7.3.6 Return on Assets

Month Industry Average POSB

Dec-10 -2.02% 1.01%

Dec-11 2.43% 6.32%

Dec-12 1.64% 3.12%

Dec-13 0.06% 0.97%

Mar-14 0.26% -0.61%

Jun-14 0.49% -1.13%

Sep-14 0.37% 0.49%

Dec-14 0.92% 1.15%

Mar-15 0.08% 3.26%

Jun-15 0.63% 4.45%

Sep-15 1.37% 6.42%

Dec-15 2.11% 7.23%

Mar-16 0.42% 1.21%

Jun-16 0.98% 3.00%

Sep-16 1.56% 4.41%

Dec-16 2.26% 5.90%

Mar-17 0.69% 1.37%

Jun-17 1.26% 2.03%

Sep-17 1.89% 3.54%

Dec-17 2.61% 5.01%

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7.3.7 Cost to Income

Month Industry Average POSB

Dec-10 148.95% 73.44%

Dec-11 185.11% 80.26%

Dec-12 99.95% 88.94%

Dec-13 173.43% 95.64%

Mar-14 87.15% 92.13%

Jun-14 95.77% 99.12%

Sep-14 96.63% 91.55%

Dec-14 93.72% 89.29%

Mar-15 97.55% 80.85%

Jun-15 90.76% 79.97%

Sep-15 86.65% 76.92%

Dec-15 84.40% 76.13%

Mar-16 86.30% 79.22%

Jun-16 84.26% 76.00%

Sep-16 82.88% 74.56%

Dec-16 79.20% 72.69%

Mar-17 76.58% 74.08%

Jun-17 72.50% 78.76%

Sep-17 77.02% 75.22%

Dec-17 75.02% 72.55%

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8. FINANCIAL PERFOMANCE

8.1 STATEMENT OF COMPREHENSIVE INCOME

Dec 17 US$

Dec 16 US$

Interest income Interest expense

13,818,208

(2,791,198)

15,015,370

(2,783,675)

Net interest income

11,027,010 12,231,695

Increase in impairment losses on loans and advances Net interest income after impairment losses Fees and commission income Dividend income Profit on disposal of financial assets at fair value through other comprehensive income Fair value gain/(loss) on investment properties Other operating income

(856,657)

10,170,353

23,611,633

35,601

-

15,000

3,767,388

(1,262,285)

10,969,410

21,837,914

36,171

183,297

(5,000)

2,550,120

Net operating income

37,599,975 35,571,912

Operating expenses

(26,235,969) (25,895,482)

Profitfor the year 11,364,006 9,676,430

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Other comprehensive income Items that will not be reclassified to profit or loss Fair value gain/(loss) on financial assets at fair value through other comprehensive income Items that will be reclassified to profit or loss Total comprehensive income for the year

1,889,802

-

13,253,808

(127,812)

-

9,548,618

8.2 STATEMENT OF FINANCIAL POSITION

Dec-17

US$

Dec-16

US$

ASSETS

Cash and balances with banks 1,210,227 2,505,922

Balances with the Central Bank 46,529,837 20,848,860

Financial assets at amortised cost 153,975,987 119,010,240

Other assets 13,821,327 13,071,770

Financial assets at fair value through other

comprehensive income 2,663,708 728,446

Investment properties 430,000 415,000

Property, plant and equipment 5,606,670 5,038,124

Intangible assets 2,452,057 2,714,554

TOTAL ASSETS 226,689,813 164,332,916

LIABILITIES

Customer deposits 159,092,398 114,707,241

Other liabilities 13,151,403 8,433,471

TOTAL LIABILITIES 172,243,801 123,140,712

CAPITAL AND RESERVES

Share capital 21,428,770 6,729,662

Capital contribution reserve - 12,900,000

Mark-to-market reserves 1,422,348 (467,454)

Revaluation reserve 406,832 406,832

Revenue reserves 31,188,062 21,623,164

TOTAL CAPITAL AND RESERVES 54,446,012 41,192,204

TOTAL LIABILITIES AND EQUITY 226,689,813 164,332,916

8.3 STATEMENT OF CASH FLOWS

Dec 17 Dec 16

Operating activities US$ US$

Profit/(Loss) for the year 11,364,006 9,676,430

Adjustments for non- cash items

Increase/(decrease) in Impairment loss on financial assets

at amortised cost

856,657

1,262,285

(Decrease)/increase in provision for impairment of other

receivables

(333,890)

(207,183)

(Profit)/ loss on disposal of property, plant and equipment (19,938) 41,437

(Increase)/ decrease in fair value of investment properties (15,000) 5,000

Scrip dividend - (41)

Foreign exchange (gain)/ loss (56,324) (94,020)

(Profit)/ loss on disposal of financial assets at fair value

through other comprehensive income

-

(183,297)

Depreciation of property, plant and equipment 1,105,689 1,076,207

Amortisation of intangible assets 465,521 413,473

Operating cash flow before changes in operating

assets and liabilities

13,366,721

11,990,291

Changes in operating assets and liabilities 12,917,940 10,456,269

Increase in financial assets at amortised cost and other

assets

(36,185,149)

(12,801,153)

Increase in deposits and other liabilities 49,103,089 23,257,422

Net cash flows from operating activities 26,284,661 22,446,560

Cash flows from investing activities (1,899,379) 114,137

Proceeds from sale of property, plant and equipment 104,810 16,641

Proceeds from sale of financial assets at fair value through

other comprehensive income

-

947,955

Purchase of financial assets at fair value through other

comprehensive income

Purchase of investment properties

(42,057)

-

(12,643)

-

Purchase of property, plant and equipment (1,759,108) (609,059)

Purchase of intangible asset (203,024) (228,757)

Cash flows from financing activities - (2,792,431)

Issue of shares

Dividend paid

2,419,108

(2,419,108)

-

(1,976,878)

Repayment on long term borrowing - (815,553)

Net increase/(decrease) in cash and cash

equivalents

24,385,282 19,768,266

Cash and cash equivalents at the beginning of the

year

23,354,782 3,586,516

Cash and cash equivalents at the end of the year 47,740,064 23,354,782

THE END