By BUUMBA CHIMBULU
DIVIDENT amounting to K8 million has been declared by the Zambia National Building Society (ZNBS) to the shareholders for the financial year 2020 to 2021, as its capital adequacy shoots to over K200 million.
Considering the strong financial performance of the Society, the Board of Directors has declared K8million dividend to be paid to the shareholders of the ZNBS, according to the Society Chairman, David Nama.
Dr Nama indicated that ZNBS’s capital adequacy during the financial year 2020 to 2021 closed on a strong note.
The capital adequacy for the Society increased to over K200 million.
“Our capital position remained strong, with our capital adequacy ratio closing at 49 percent compared to previous year ratio 35 percent and Bank of Zambia minimum requirement of 15 percent.
“This a solid base for the Society’s growth plans,” Dr Nama said yesterday in Lusaka at a press briefing.
Dr Nama stated that operating profit increased by more than 100 percent, supported by the strong balance sheet performance and profits recorded on our property portfolio.
The balance sheet of the Society, he said, grew by 38 percent supported by increase in customer deposit of 34 percent from March 2020 to March 2021.
“Gross interest income increased by 27 percent (from K229million March 2020 to K293million, March 2021) while Net interest margin increased by 32 percent (K117 million,2020: K155million, 2021).
“This was mainly driven by increase in Loans and Advances,” Dr Nama said.
Going forward, Dr Nama said, ZNBS would continue to work with Government and other strategic partners to harness greater capacity in provision of affordable housing finance.
He stated that ZNBS was focused on digitalisation a number of channels to improve the manner in which we are able to reach and provide services to the customer.
“The Society, will focus on sectoral research and product development of market-fit solutions (products and services) and drive innovation in a bid to provide affordable housing solutions,” he said.
Dr Nama also shared that the 2020/2021 financial year was challenging with the Covid-19 pandemic creating a socio-economic and humanitarian crisis worldwide.