The National Building society in order to contain the effects of inflation has had to employ stringent measures to survive. This came to light as the building society was presenting their financials for the period ending 30 June 2019. The Chairman in a statement to Newsday gave the following results for the period ended 30 June 2019:
The financial institution reported total income of $13,9 million compared to $567 113 recorded in the previous year.
Net interest income was $4,2 million from $3,7 million in the prior period.
NBS’ loan book increased by 16% after its net loans and advances reached $94,991,387 compared to $81,596,257 in the previous year ended June 30, 2018.
“Despite the prevailing conditions in the macro-economic environment, the society’s loan book has grown by 16%,” Kudenga said.
The bank’s total assets increased by 4,2% after it had a total of $247,809,479 in the period ended June 30, 2019 compared to a total of $237,624,342 that was restated on December 31, 2018.
The bank’s investment properties also increased 208% propelled by revaluation of land purchased in December 2016.
Cash and cash equivalent dropped significantly to $2,6 million from $12,1 million last year at the same time and this was attributed to fiscal and monetary measures taken by the authorities.
“Due to the endorsement of several monetary and fiscal policy reforms which have led to the decrease in liquidity and led to the increase of inflation rates in the macro-economic environment and for the Society, it has slowed down the balance sheet to 4% in 2019 compared to 10% in the same period in 2018
Inflation in August soared to close to 300% according to the IMF. Most businesses have been forced to increase their prices on a daily basis to try and curb losses a move which has totally eroded the public’s purchasing power. The Government has said they are working with businesses to try and find a pricing model.