- Customer base grew to 80 000 active customers
- Transaction volumes on all platforms registered growth in volumes and values
- Net operating income increased by 34%
Harare – National Building Society (NBS) registered growth in its customer base on improved digital infrastructure in the year ended 31 December 2019.
In a statement accompanying the Society’s results for the period, NBS Chairperson Stanley Kudenga said the customer base has grown to 80 000 active customers, reflecting the improved transaction capability of its platforms and thus enhanced customer experience.
Due to these improvements, transaction volumes on all platforms experienced a surge in volumes and value and the Society continues to invest in digital infrastructure to improve earnings through easy access of services.
The Society’s net operating income grew by 34% from ZWL66.5 million to ZWL89.5 million in the period under review.
The increase was attributed to the increased transactability in line with its digitization strategy which pushed fees and commission income up.
In addition, Kudenga said positive movements in NBS’ investment property portfolio also pushed overall earnings of the Society.
Income growth was however weighed down by subdued effective interest rates and the regulatory cap on service charges and interest.
Operating expenses in the period increased by 45% from ZWL60 million in 2018 to ZWL86.8 million mainly due to inflationary pressures experienced in the past year.
According to Kudenga, the operating environment had a significant effect on the Society’s ability to deliver housing considering the escalating cost base largely driven by the currency exchange rate.
“A strategic decision was made to slow down on capital developments in order to preserve capital as the cost of enhancement or development was deemed significantly higher and possibly irrecoverable after considering the disposable incomes of most of our customers”, he said.
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