Oliver Kazunga, Senior Business Reporter
NATIONAL Social Security Authority (NSSA) financial subsidiary, National Building Society (NBS) recorded a 140 percent growth in total asset base to $137 million in the financial year ended December 31, 2017.
The pension fund’s acting chairperson, Mrs Daphine Tomana said in a statement accompanying financial results for the period under review that the growth in NBS’s asset base was a result of improvement in the bank’s customer deposits and borrowings.
“NBS’s performance for the year ended December 31, 2017 was commendable. Total assets grew by 140 percent from $57,1 million to $137 million. The growth in assets was driven by the growth in customer deposits and borrowings,” she said.
During the period under review, customer deposits grew by 185 percent from $19,4 million to $55,2 million while borrowings recorded a 117 growth from $15,5 million to $33,7 million as the building society underwrote more housing projects in line with its core mandate. Resultantly, loans and advances disbursed grew by 155 percent from $25 million to $62,8 million.
Mrs Tomana said the building society incurred a deficit of $1,2 million, which was an improvement of 61 percent from the 2016 deficit of $43 million. She said this improvement was largely due to growth in business coupled with the harnessing of technology to positively drive the value chain.
During the year, NSSA injected capital of $24,6 million to improve NBS’s capitalisation, which had deteriorated to $19,1 million due to embryonic losses.
“The injection improved the building society’s capital to $44,7 million and enhanced its ability to underwrite more business. In pursuance with its core mandate, the building society completed the construction of 307 affordable housing units in various locations around the country. In addition, the building society had 840 units at various stages of construction, which are expected to be completed in 2018,” said Mrs Tomana.
In January, NBS announced that it was targeting to construct 100 000 low cost housing units in the next five years with 10 000 units earmarked for this year. NBS targets low income earners, first time home buyers and the informal sector.