NBS targets Glaudina flats project completion

THE National Building Society (NBS) is looking forward to completing its Glaudina Flats project in Harare soon, as part of its revenue and profitability growth strategy as well as commitment to providing decent housing through various mortgage facilities.

Under phase one of the project the society is constructing two of the targeted nine blocks of residential flats.

NBS is also servicing some residential stands at Batanai in Chinhoyi and expects to launch the project onto the market in the second half of the current financial year.

According to NBS, this follows the completion of the low cost housing units in Dzivarasekwa.

This has ensured that the society lives up to its mandate of providing affordable housing, contributing positively to the national housing stock.

“NBS is looking forward to completing its signature Glaudina Flats development with a significant number of units already presold.

“The society hopes to finalise and implement some housing partnerships both in Harare as well as in Bulawayo whose implementation will positively enhance the society’s financial performance,” said NBS managing director Mr Sifiso Mahlangu in the society’s half-year financial statement to June 2024.

Mr Mahlangu said he was optimistic that the Government would institute policy measures to ensure a more conducive operating environment.

In the period under review, NBS partnered with its shareholder, the National Social Security Authority (NSSA) to sell residential stands in Glaudina and Borrowdale.

This comes as NBS’ financial performance continues to grow steadily.

NBS net interest income closed the half year period at ZiG31,4 million, 130 percent better than the comparable period last year attributable to a tight control over cost of funds.

Operating expenses on the other hand declined to ZiG104 million from ZiG146 million as key cost metrics were negatively impacted by foreign exchange premiums previously stabilised post conversion to ZiG.

According to NBS, its capital adequacy and liquidity ratios were above the regulatory minimum at 15 percent and 30 percent respectively as at 30 June 2024.

The society’s core capital closed the period under review at US$24 million, an increase from US$22, 4 million recorded in December 2023, which was well above the Reserve Bank of Zimbabwe’s regulatory minimum capital threshold of US$20 million.

Asset quality was maintained within the desired target levels, with a non-performing loans ratio of 1,47 percent against a benchmark of 5 percent whilst impairment costs fell by 71 percent to ZiG74 million from ZiG26, 4 million.

NBS increased its wallet share of US dollar-denominated assets and liabilities in line with the currency shift in the market.

The society indicated that it continues to implement key strategic initiatives under the theme “Bank, Build and Go Beyond.”

As such the society continued to focus on growing the mortgage book through various tailor-made products and initiatives from conventional mortgages, to rent-to-buy models as well as the provision of micro mortgages.

To this end, NBS also expanded its physical footprint through the opening of the Bindura branch, cementing its commitment to be present in Mashonaland Central Province. It also launched its microfinance subsidiary, Lenderspark Finance, a standalone entity targeted at meeting the financial needs of individuals and small businesses that are unable to access funding from traditional banking channels.-herald