Zambia National Building Society Presents K8 million Dividend to New Minister of Finance
Opinion, Strategy

The Board and Management of Zambia National Building Society presented a dividend cheque to Finance Minister Honorable Situmbeko Musokotwane on 9th September 2021, becoming the first company to do so from the GRZ portfolio of parastatals under the new administration.

ZNBS Board and Management courtesy call on Minister of Finance

 

Chief Executive Officer Mildred Mutesa accompanied Board Chairperson Dr. David Nama to make the K8 million dividend presentation to the new Minister at the Ministry of Finance Headquarters in Lusaka.

Since taking office prior to celebrating its Jubilee, Mildred has been reorganizing and transforming the society into a modern society. At a press briefing last month when ZNBS reported its K8 million, David Nama signaled in his speech at a press briefing that was going to focus on affordable housing and digitalization as part of their strategy. He also spoke candidly about the transformation that ZNBS was undergoing and would be looking to technology and innovation to enhance the product offering from the mortgage house that has seen it also venture into high street retail banking.

The payment of the dividend is testament that the trajectory that Mildred is taking the society is positive. The payments of dividends are clearly enshrined in the Buildings Society Act (Section 94 on Restriction of payment of Dividends) which states “No building society shall pay any dividend or interest on any of its shares otherwise than out of surpluses earned by the society during the financial year to which the dividend or interest relates, and undistributed surpluses.”  Therefore, this dividend is testament that a regulatory compliant ZNBS is creating value for its shareholders.

Over the last 5 years, the Society’s Assets have grown from K647million to K1.266billion representing a growth of 95%, according to the 2020 Annual Report. The growth in assets was largely driven by an increase in loans and advances. Furthermore, total Shareholder funds have grown by 43% during the same period. With the Monetary Policy Rate recently being maintained at 8.5% by the Bank of Zambia, the Society’s current Return on Equity (ROE) which has averaged 9.6% between 2016 and 2020, shows that the Society’s investments are creating value for shareholders.

 

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