The National Building Society (NBS) has reported a notable strengthening of its capital base for the financial year ended 31 December 2025, with core capital rising by 44 percent to reach US$57 million.
This improvement was largely underpinned by retained profits and additional capital support from its principal shareholder – National Social Security Authority (NSSA).
This capital position stands comfortably above the regulatory threshold of US$20 million prescribed by the Reserve Bank of Zimbabwe for building societies.
In a statement accompanying the Society’s financials for the year under review, board chairman Shingai Mutumbwa highlighted that both capital adequacy and liquidity ratios – at 59 percent and 46 percent respectively – remained consistently well above minimum requirements throughout the period.
He said such strength reflects NBS’ capacity to withstand financial shocks while continuing to extend services and grow its lending activities.
Mutumbwa further remarked that this solid capital footing represents more than mere compliance.
“Rather, it forms the foundation upon which the institution intends to advance its strategic ambitions in the years ahead,” he said.
Core capital serves as a vital safeguard for banking institutions, enabling them to absorb losses and maintain operational stability during periods of economic strain.
Against this backdrop, NBS also recorded significant balance sheet growth, expanding by 40 percent to ZiG5,59 billion, a sign of sustained operational momentum.
Financial performance improved markedly, with the Society registering a surplus of ZiG85,1 million, a sharp turnaround from the inflation-adjusted loss of ZiG45 million reported in the previous year.
This recovery was driven primarily by a 93 percent rise in net interest income, itself a result of deliberate efforts to expand the loan portfolio.
According to Mutumbwa, these results demonstrate disciplined execution of NBS’ growth strategy, a continued emphasis on income generated from funded activities, and a deepening of the balance sheet.
The loan book grew substantially by 70 percent to ZiG2,41 billion, underscoring NBS’s role in supporting economic activity. At the same time, asset quality remained sound, with the non-performing loan ratio closing the year at a low 1,55 percent, an indication of prudent lending practices and effective credit risk management.
Progress was also recorded in housing development initiatives.
In Mathendele, Plumtree, the Society completed 124 fully serviced residential stands equipped with solar-powered street lighting, aligning with its commitment to sustainable infrastructure.
In Bulawayo, work advanced to the second phase of the Rangemore project, where 300 housing units are being delivered under the Accelerated Civil Servants Presidential Housing Scheme.
Meanwhile, in Harare, Phase Two of the Glaudina Flats development, comprising 96 two-bedroom apartments, was successfully completed.
Looking ahead, NBS managing director Sifiso Mahlangu indicated that the Society intends to strengthen collaboration with government, development finance institutions, and private sector partners to unlock further funding for housing and broaden access to affordable homes.
NBS has outlined plans to introduce additional housing projects in Masvingo, Bulawayo, Mutare, and Harare.
At the same time, it aims to expand its mortgage portfolio and reinforce its standing within Zimbabwe’s housing finance sector. – TML