Business

ZNBS targets to increase asset portfolio

KELLY NJOMBO,  Lusaka
THE Zambia National Building Society (ZNBS) has projected to grow its asset base to about K1.1 billion this year from the current K690 million through its various investment ventures.
The society has also recorded significant growth in profitability to K20.6 as at November 2016 from K3.9 million in 2015.
ZNBS managing director Joseph Chikolwa attributed the growth to the increase in loans and advances by 27 percent from K367 million to K468 million during the same period.
Mr Chikolwa was speaking during the official signing ceremony of a memorandum of understanding (MoU) between ZNBS and the Public Service Management Division (PSMD) for the loan refinancing scheme worth K40 million for public service employees yesterday.
“Over the last two years, the society has registered steady growth and by the end of 2017/18 financial year, we anticipate to grow the asset base to about K1.1 billion from the current K690 million,” he said.
Mr Chikolwa said about K40 million has so far been set aside, and that the refinancing of loan facilities that public service employees have with other financial institutions would lower the cost of interest rates the employees that have borrowed at high interest rates.
“We are aware of the challenges faced by public service employees and general public related to the cost of borrowing hence the signing of the MoU…The customers will obtain loans in form of refinancing at very competitive interest rates of 33 percent for the tenure of 60 months,” Mr Chikolwa said.
The customer deposit rose by 11.8 percent to K253 million from K227 million and interest income grew by 40 percent from K53 million to K74 million in 2016.
At the same event, Zambia Congress of Trade Unions secretary general Cosmas Mukuka said the re-financing agreement will motivate the public workforce through access to loans.
Mr Mukuka said most workers are demotivated due to poor working conditions and lack of access to affordable loans.

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