By HELEN ZULU -
THE Zambia National Building Society (ZNBS) customer deposit base rose by 11.8 per cent to K253 million from K227 million in 2016, while interest income grew by 40 per cent from K53 million to K74 million.
The financial institution projects to grow its asset base in 2017 to about K1.1 billion from the current K690 million.
ZNBS managing director Joseph Chikolwa said the society recorded significant growth in profitability of K20.6 as at November 2016 from K3.9 million in 2015.
He attributed the growth to the increase in loans and advances by 27 per cent from K367 million to K468 million.
“Over the last two years, the society has registered steady growth and by the end of the 2017/2018 financial year, we anticipate to grow the asset base to about K1.1 billion from the current K690 million,” he said.
Mr Chikolwa was speaking during the official signing ceremony of the Memorandum of Understanding (MoU) between ZNBS and Public Service Management Division (PSMD) for the loan refinancing scheme in Lusaka yesterday.
He said the customer deposits rose by 11.8 per cent to K253 million from K227 million and interest income grew by 40 per cent from K53 million to K74 million in 2016.
ZNBS signed the MoU worth K40 million with the PSMD, for the refinancing of loan facilities that public service employees have with other financial lending institutions.
This would lower the cost of interest rates for public service employees that have borrowed at high interest rates and result in a higher take-home pay.
“We are aware of the challenges faced by public service employees and general public related to the cost of borrowing.
“The customers will obtain loans in form of refinancing at very competitive interest rates of 33 per cent for the tenure of 60 months,” Mr Chikolwa said.
Zambia Congress of Trade Unions (ZCTU) secretary general Cosmas Mukuka, said a motivated workforce with securities such as access to loans and decent conditions was needed in Zambia.
Mr Mukuka said the arrangement would, therefore, motivate the public service workforce.
“This agreement has incentives which will promote the public workforce. It has incentives such as offering promotional loans to civil servants for the first three months,” he said.