HARARE – National Building Society’s loan book has registered a 16% growth during the half year ended 30 June 2019 despite the prevailing harsh macro-economic environment.
The Society’s loans and advances grew to ZWL$95.0 million compared to ZWL$81.6 million in the previous comparable period in 2018.
Board Chairperson Stanley Kudenga said customer centricity has remained the core of the Society’s value proposition and continues to steadily grow its market share, a reflection of confidence trusted to the Society as it pursues the mission of making the dream of decent housing a reality.
“In the medium to short term, strategic alliances with various institutions including local authorities will see our current pipeline of 6 350 housing units being delivered,” Mr Kudenga said.
The Society’s total operating income for the period under review scaled up 363% to ZWL$23.7 million against ZWL$5.1 million in the previous year mainly driven by non-interest income which grew by 804% over prior year.
Revenue earned in the period under review is ahead by 62% of the same period last year whilst costs have recorded an adverse 92% variance to the previous year’s operating expenses.
“The Society has had to re-configure and implement stringent cost containment measures to contain the effects of inflation,” Mr Kudenga said.
“Consequently, there has been a drop in cost to income ratio from 89% in the half year to 48% in the current half year.”
Over the period, NBS opened two service centres one in Mutare launched in February 2019 and a satellite branch in Masvingo which started operating in March 2019.
Mr Kudenga said these will go a long way in bridging the gap to customers and at the same time providing the support network for the work on the ground in terms of housing projects in the respective areas.
Equity Axis News
Raynold Mhotseka is a Journalism and Media Studies student at the University of Zimbabwe. He serves as a news writer at financial research firm, Equity Axis where he is currently on attachment. He can be contacted through the following email links, email@example.com and firstname.lastname@example.org.