NBS committed to affordable housing
NATIONAL Building Society (NBS) says it remains committed to the provision of affordable housing to the majority of home-seekers through various mortgage and micro-mortgage products.
Last year NBS delivered 200 housing units in Harare’s Tynwald suburb, after churning 600 units through its Dzivarasekwa project in 2022.
The building society said the drive was meant to complement Government efforts and help the country deliver 220 000 housing units by 2025 in line with the National Development Strategy 1 (NDS1).
For a while now NBS has been partnering with councils to deliver affordable housing in the peri-urban areas under the “Ramangwana Ilakusasa,” product.
Through partnership with the National Social Security Authority (NSSA) the bank has managed to provide housing and stands in areas like Glaudina (Harare), and Beira Corridor (Mutare), Batanai (Chinhoyi) expansion of projects that will offer more affordable housing options.
In a statement accompanying the NBS financials to December 2023, the bank’s acting managing director, Mr Sifiso Mahlangu said it will ensure that Zimbabweans have access to affordable housing.
He said the bank is cognisant of the diverse requirements of its corporate clients and highnet-worth individuals, thus introducing the corporate banking unit and the Platinum Pavilion to offer tailored solutions to these specialised customer segments.
The bank said it had established an advisory services company (Merit Capital (Pvt) Ltd) and a real estate company (Greenkeys Realtors (Pvt) Ltd), initiatives that underscore the commitment to providing comprehensive financial solutions and real estate services to the clientele.
“NBS remains resolute in its mission to provide affordable housing to thousands of Zimbabweans through our mortgage and micro-mortgage products. The successful completion and sale of projects such as Dzivarasekwa and Tynwald underscore our commitment to meeting the housing needs of our communities.
“Our collaboration with the NSSA has enabled us to offer fully serviced stands in strategic locations,” said Mr Mahlangu.
To further deliver on the housing needs for locals, NBS has also begun the process of unlocking value from its significant land banks which include the 628-hectare Christmas Gift project in Gweru and the 6,4-hectare Mathendele project in Plumtree.
Feasibility and planning have begun at the Christmas Gift project whilst the servicing of the Mathendele stands is set to commence in the third quarter of 2024.
NBS board chairman Mr Shingai Mutumbwa, revealed that a number of projects were currently underway across the country, mainly in Chinhoyi, Harare and Mutare.
“In line with its key mandate to provide affordable housing the bank is developing and servicing 753 stands in Batanai, Chinhoyi and selling serviced stands in Glaudina — Harare.
“It is also constructing two high-rise block of flats at Glaudina and working towards procuring compliance certificates for the 153 houses at Newmara in Mutare,” said NBS board chairperson, Mr Shingai Mutumbwa.
Operationally, during the year to December 2023, NBS total operating income surged to $372 billion, a substantial increase from $81 billion realised in 2022.
The bank’s profit closed the year at $73 billion in inflation-adjusted terms, a 200 percent improvement from $19 billion in the prior comparable period.
Interest income grew 62 percent to $45 billion while operating costs rose to $116 billion ahead of $33 billion. As such, the costto-income ratio dropped 31 percent from 46 percent in 2022.
The bank’s capitalisation improved to US$22,4 million from US$18,3 million. This is above the RBZ regulatory minimum capital level of US$20 million.
Total assets grew to $522 billion from $265 billion, while deposits recorded a notable increase in USD to $263 billion from $141 billion.
The bank said it had plans to expand its branch network as part of its five-year (202328) strategic plan.
NBS further indicated that it will be opening new doors and branches here in Harare and outside the capital