MORTGAGE lender, National Building Society (NBS), says core capital increased to US$20,95 million during the half year ended June 30, 2023, after receiving assistance from its shareholder, National Social Security Authority (Nssa).
This figure was US$18,3 million at the end of 2022.
In a statement attached to its financial results for the period, NBS board chairperson Shingai Mutumbwa said the firm was adequately capitalised.
“The society is adequately capitalised with core capital of US$20,95 million as at 30 June 2023 vs US$18,3 million at December 2022. The consistent support received from the society’s shareholder, Nssa, has enabled the society to deliver on its strategic agenda,” he said.
The growth in capital support from Nssa translated to a liquidity coverage ratio of 653,88% at the end of the period under review, above the prescribed minimum of 100%.
Management continued to deploy capital preservation strategies, and these ensured the bank achieved a capital adequacy ratio of 26% and Tier 1 Capital level of ZW$120,2 million (US$20,9 million).
Thus, the society was compliant with the Reserve Bank of Zimbabwe’s minimum capital levels for building societies.
NBS acting managing director Sifiso Mahlangu said the society’s goal was not just to provide housing but to make home ownership accessible to all.
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During the period, NBS unveiled 120 new housing units in Harare — the Tynwald Sunset Villas — thus contributing to the delivery of housing under the National Development Strategy 1.
According to NBS, the launch marked the commencement of several such projects that are in the pipeline for 2023, which are spread around Zimbabwe.
“To that end, we introduced a ground-breaking “rent-to-buy” scheme, a bridge to home ownership, specially crafted to accommodate the informal sector, which comprises nearly 75% of Zimbabwe’s economy,” the acting managing director said.
Regarding mortgage financing, he said, its offering extended beyond the traditional mortgages.
“In the spirit of affordability, our micro-mortgage facility allows Zimbabweans to build homes in peri-urban and rural areas and to customise the homes in accordance with their needs,” Mahlangu further stated.
“In line with our mandate, as a wholly-owned subsidiary of Nssa, the micro-mortgage is a product that speaks to those nearing retirement, offering them the means to create a sustainable economic means post-retirement through the inclusion of solar and borehole drilling facilities, within the ambit of this product.”
Despite a decline in its net interest income of 34,32% to ZW$2,43 billion during the period under review from the 2022 comparative, non-funded income surged by 1 462,83%.
The non-funded income rose to ZW$191,37 billion as at the end of June, from a 2022 comparative of ZW$12,24 billion.
This performance was mostly driven by NBS posting a fair value adjustment on investment property of ZW$62,75 billion and an increase of about 975% in other operating income to ZW$62,38 billion from the comparative 2022 period.
The performance led to a surplus of ZW$80,82 billion for the period under review, up 938,29% from the 2022 comparative timeframe.
“Total assets increased by 194% from December, driven by increased mortgage underwriting as the society offloaded houses from its Tynwald Sunset Villas and Dzivarasekwa portfolios,” Mahlangu said.
“Investment securities also increased to ZW$49,5 billion, up from ZW$667 million in December as the society enhanced its portfolio of liquid assets.”
Total assets as of the end of June were valued at ZW$339,66 billion.
The exchange rate as at June 30, 2023, was US$1:ZW$5 739,79 and US$1:ZW$370,96 at the end of the comparative 2022 period. At the end of 2022, the Zimbabwe dollar was trading at US$:ZW$684,33.
