eBusiness Weekly
HARARE – The National Building Society (NBS) posted a loss for the second year running since its establishment in 2016 but is optimistic of turning around its fortunes by the end of this year as it underwrites more housing projects and introduces new products.
A subsidiary of the National Social Security Authority (NSSA), NBS was set up by government to deliver affordable housing given the high backlog across the country.
In its first year of operation, the building society recorded a loss of $3 million in 2016, but cut this to half to $1, 2 million.
Despite the financial setback, NBS managed to deliver 307 completed housing units across the country and had 840 more at various stages of construction which are expected to be completed by end of the year.
NBS chairman, Douglas Zimbango said besides housing projects, the institution was rolling out new services to improve its financial performance.
“We are therefore confident that our strategy for 2018 positions us uniquely to fulfil the housing demands of low to middle income Zimbabweans while delivering value to the shareholder,” he said.
In the period, NBS introduced new products which include a hospital cash plan, micro-mortgage for small businesses, point of sale machines and an “innovative” mobile banking application.
Zimbango said the firm’s improved financial performance, though still in the negative, “was largely due to the growth in business coupled with the harnessing of technology to positively drive the value chain.”
During the review period, NBS saw its income massively surge to $7, 3 million from $1, 3 million the previous year but profitability suffered on the back of a double growth in operating expenses which rose to $8, 3 million from $4, 4 million on back of rise in staff costs, depreciation and “other expenses.”
A 185 percent growth in bank deposits drove its asset base to $137 million from $57 million. – New Ziana
