Swazi Observer

FULL STORY

SBS’S ASSET AT E3BN

By NOMFANELO MAZIYA | 2024-06-24

Swaziland Building Society (SBS) has exhibited a steady growth trajectory over the past 10 years with assets growing by nearly 100 per cent from E1.5 billion in 2013 to E3 billion in 2023.

This is contained in the society’s commemorative book detailing the history of the entity titled ‘ 60 years of creating wealth.’

this steady increase reflects the society’s ability to expand its loan portfolio and attract new deposits.

The society’s assets, according to the commemorative book, grew steadily from E1.5 billion in 2013 to E2.8 billion in 20219.

Giving growth and performance insight, SBS Chief Financial Officer Jerome Msibi noted that in 2020 to 2022, the asset base did not grow as it stood at E2.9 billion.

“While in 2023 it was at E3 billion,” said Msibi. He attributed this stubbornness in asset growth to the negative impacts of the covid-19 pandemic.

“The pandemic resulted in many job losses which affected the usual deposits and many people withdrew their savings to live off them while unemployed,” noted Msibi.

He also acknowledged the 2021 unrest in the country that saw properties being vandalisedsaying this also affected the society ‘as there were many withdrawals to try and rebuild properties’.

“Interest also went down during the pandemic and lockdowns that affected us as we are in mortgage finance hence the figures pre and during COVID-19 will be different than after,” said Msibi.

SBS profits, on the other hand, experienced some fluctuations over the decade, gaining from E47 million in 2013 to E63 million in 2023, according to Msibi.

“In 2021 profits dipped to E38 million from E63 million the previous year,” said Msibi.

expressed

He expressed that in the 2023 financial year, the organisation showed signs of recovery as it made E63 million in profits.

Despite the temporary dip in profits, the society’s cash flow data revealed a generally positive trend, with some variations.

Over the 10-year period, data reveals that in 2013, the society’s cash flow was valued at E217 million, dipping over time to reach E95 million in 2023.

“In terms of cashflow, Msibi explained that the years where SBShad low cashflow, it was because the Society had made investments. For example, in 2015 the cashflow was valued at 61 million and 77 million in 2017.

“For eample in one year, 2020 cash flow was at a high E561 million as no investments were made because of the pandemic, yet in 2023 the cashflow was at E95 million because of recent investments,” said Msibi. He opined that the Society’s perfomance was quite good over the decade and over the years since it was established.

“Considering that we have grown our asset base by double what it was in 2013, it shows that the society is growing and performing well,” said Msibi.

loanbook grows to e2.4 billion

Swaziland Building Society (SBS) loan book growth has reached E2.4 billion in 2023 while non-performing loan ratio decreased to 6 per cent during the same period.

In the same year, the society’s total assets grew to E3.1 million with profits reaching E63 million, according to SBS Commemorative book.

“The society has financed thousands of homes, established numerous estates and townships and financed commercial canters-another embossed footprint,” reads the book.

It also notes that some of the commercial mortgage loans include the construction of the filling station at Mafutseni, as well as the construction of a hardware in Nhlangano and the purchase of commercial property in Siteki. The society also financed the recently launched Piggs Peak mini mall.

grappled

General Manager Leonard Dlamini highlighted that the society grappled with loans that were not being serviced which necessitated the launch of the credit department.

“The launch resulted in significant improvements in the handling of loans,” said Dlamini. He further noted that the turnaround times were slow such that loan applicants had to wait indefinite periods and not be alerted on the status of their application.

“Some would remit their loan payments to the society, but it would be placed in the suspense account ‘and not correspond with the data we hand” he said.

According to Head of Credit Thulani Thwala, the establishment of the credit function has ensured the management and improvement of non-performing loans.

“When we set up the credit department, the non-performing loans ratio was as high as 28 per cent. And it has since dropped to six per cent by end of 2023,” said Thwala

over 1 000 eligible for sbs rate relief for mortgage holders

Swaziland Building Society (SBS) is introducing a new service to ease financial burden for their customers with property financed by the society.

With about 1 200 eligible customers, the Society has committed paying their rates in any municipality across the country for the current financial year.

According to SBS Manager Marketing Veli Dlamini this is a re-finance project, that is, if a customer has been paying off their mortgage consistently over the years then it is easy to have their rates paid against the value of their property.

“The decision to assist their clients in this way has been informed by the fact that interest rates have increased significantly and also the high inflation rate. These factors have created a burden on our customers and as such, the society has taken it upon itself to provide relief to them,” he said.

Dlamini said, therefore, all SBS with a mortgage account at the society were encouraged to submit their rates bill to the SBS, provide their mortgage account number and their account would to be debited at the municipality. “The proof of payment will then be given to the customer,” said Dlamini. He expressed that the society’s rate payment innovation began in June and would continue until the end of July.

“The timing of the campaign coincides with the beginning of the Municipal Council’s financial year and they have updated their rates for 2024/ 2025 which are due to accrue interest end of June. We have about 1200 customers who are eligible to have their rates paid for and there are already a number of them who have benefitted from the campaign,” said Dlamini. The SBS has promised to pay for all its customers’ rates, including those have been accumulated over the years, according to Dlamini. He said customers would be required to send SMSes to the bank with all their deatails.

“We also sent them an email address that they can use to send the particulars that we requested by SMS. The address is mortgages@sbs.co.sz and those that are able can approach their nearest SBS branch for assistance,” he said.“As the Society has more than 60 years in operation, it continues to assist customers deal with difficult econo mic times in line with its official tag line Creating Wealth for you.”

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