By Jonathan Mbiriyamveka
The People’s Own Savings Bank (POSB) has delivered a robust financial performance for the year ended 31 December 2025, posting a net profit of US$10.3 million on revenue of US$54.15 million – a testament to the resilience of its strategy and the strength of its deposit franchise.
The bank’s performance has been anchored on revenue growth, positive profitability, strong governance, customer service improvement, resource discipline, and implementation of Government cross-cutting priorities.
The bank’s integrated results-based management (IRBM) rating of 4.15 out of 5, assessed as “Effective,” reflects the progress made across all performance areas.
Dividend Growth Reflects Strength
Perhaps the most striking indicator of the bank’s financial health is its dividend track record. Dividends have increased consistently over the past five years, from a modest US$216,000 in 2022 to an impressive US$5.1 million in 2026 – a 2,260% increase.
“The consistent growth in dividends reflects the Bank’s strong financial performance, prudent capital management, and confidence in its long-term sustainability,” POSB noted in its CEO’s report to shareholders.
The proposed dividend for 2026 of US$5.1 million demonstrates the bank’s ability to deliver sustainable shareholder returns while maintaining adequate capital to support future growth and strategic investments.
Strong Capital and Liquidity Position
POSB remained well capitalised, with capital adequacy ratios of 38.96% as at 31 December 2025 and 39.24% as at 30 June 2026 – both well above the 12% regulatory minimum and the industry average of 29.69%.
The non-performing loan (NPL) ratio was contained at just 1.6%, well below the 5% regulatory benchmark and industry average of 3.47%, reflecting strong asset quality and prudent credit risk management.
The bank’s liquidity position was equally robust, with liquidity ratios of 78% as at December 2025 and 72% as at June 2026 – well above the 30% regulatory minimum and the industry average of 58%.
Revenue Drivers
Non-funded income remained the bank’s primary revenue driver, contributing 73% of total income, while net interest income accounted for the remaining 27%.
This strong performance was driven by the bank’s resilient retail banking franchise, growth in the Mastercard business, and increased transaction volumes supported by enhanced digital banking platforms.
Net interest income was driven by growth in the bank’s loan book, with Microfinance and Individual loans contributing 56% and 26% respectively of total interest income.
Customer Deposits Exceed Expectations
Customer deposits exceeded budget by 25% as at December 2025 and 19% as at June 2026, reflecting the strength of POSB’s deposit franchise, growing customer confidence, and the success of its business development and market expansion initiatives.
“The growth in deposits enhances the Bank’s funding capacity and supports long-term value creation,” the bank stated.
Outlook
Going forward, the bank will continue to mobilise deposits through savings and term deposits to fund working capital for the productive sectors of the economy, prioritising agriculture, manufacturing, and mining.
The focus is on the expansion of the lending portfolio, led by strong growth in retail lending while supported by increased lending to the SME, Agribusiness, and Corporate segments.
Despite the impact of MPS regulations effective 1 April 2026, particularly those affecting non-funded income, the bank is implementing strategic initiatives to recover a significant portion of the affected income and sustain long-term profitability.
For shareholders, the message is clear: POSB is delivering sustainable value, and the dividend growth trajectory reflects a bank that is not just surviving but thriving.
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