Servicing of Plumtree stands to start in third quarter

THE National Building Society (NBS) plans to commence servicing its 6,4 hectares of land earmarked for housing at Mathendele suburb in Plumtree in the third quarter of the year as it unlocks value from its vast land bank.

The Mathendele housing project is part of the building society’s broader project that includes feasibility and planning which has begun at the 628 hectares at Christmas Gift in Gweru, 753 residential stands in Batanai, Chinhoyi and the selling of serviced stands in Glaudina in Harare.

The Batanai and Glaudina projects are in partnership with the National Social Security Authority (Nssa).

The society is also constructing two high-rise blocks of flats in Glaudina and is working towards procuring compliance certificates for the 153 houses at Newmara in Mutare.

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).

In its financials to December 2023, the bank’s acting managing director, Mr Sifiso Mahlangu said the institution anticipates an exciting year with various housing projects and innovative projects on the horizon.

“Our partnership with the private sector, our parent company Nssa and Government entities will propel us in our mission to provide affordable housing and drive economic development across Zimbabwe,” said Mr Mahlangu.

Board chairman, Mr Shingai Mutubwa said the institution is confident that it will emerge from the economic challenges to be a key player in the financial services sector and in the provision of affordable housing.

“Our growing deposit base and assets are a testament to our commitment to provide reliable and innovative financial solutions to our customers,” he said.

Based on the financials, the building society closed the year with capitalisation of US$22,4 million surpassing the Reserve Bank of Zimbabwe minimum capital level of US$20 million for building societies up from US$18,3 million at the end of December 2022.

Operating costs rose to $116 billion from $33 billion and the cost to income ratio dropped significantly from 46 percent in 2022 to 31 percent in 2023.

Profitability also increased by over 200 percent in inflation-adjusted terms totalling $73 billion up from $19 billion in 2022.

The financial institution said total assets grew from $265 billion to $522 billion, nearly doubling the firms balance sheet.

Loans and advances increased by 117 percent to $174 billion. Deposits also grew to $263 billion from $141 billion with a noticeable increase in United States dollar-denominated deposits.