Postbank expects decline in finances for at least two years

The Postbank expects a decline in its finances for at least the next two years.

The Bank says this is partly due to the country’s modest economic recovery and the impact of COVID-19.

Its executives were virtually briefing Parliament on the impact of coronavirus on its business.

The struggling state entity says besides its numerous challenges, it still expects to remain with a cash surplus at the end of each financial year.

The Bank’s Acting Chief Financial Officer Innocentia Pule says it made a modest profit in the past four months.

“We are reporting a profit before tax of R213 million, compared to R395 million of last year, which has not been reflected on here.”

It has applied for a banking licence, in its bid to enter the retail banking market.

Postbank Board Chairperson Phumzo Noxaka says, “As part of our digitisation strategy, this includes putting the ATM system throughout the country, in identified areas.”

The Bank is already disbursing 6.3 million grants to the value of over R3.2 billion to beneficiaries.

Its board told lawmakers that if or when it receives its banking licence, it will be ready to fulfil the role of a state bank.