He said last year's profit was the highest ever recorded since the mortgage financing institution was established some 63 years ago in 1940.

"Our excellent achievement has been due primarily to cost control, beneficial investment decisions, prudent risk management and monitoring processes, while at the same time maintaining a high and efficient level of service to our members," Bhookmohan told shareholders at the recent 63rd annual general meeting of the NBS at Le Meridien Pegasus Hotel, Georgetown.

He pointed out that this level of profit was achieved while maintaining the lowest spread - paying high rates of interest on deposit accounts and charging lowest rates of interest on mortgage loans.

"We believe that affordable loan rates and better returns on savings provide attractive options for the hard-pressed consumers," he said.

As forecast last year, NBS' share of the mortgage market continued to increase following its aggressive marketing strategy, exemplary customer service and the decision to further reduce mortgage rates, Bhookmohan told shareholders.

According to the Chairman, NBS' mortgage portfolio moved from $8.351B to $9.832B, an increase of $1.481B or 18%.

He also noted that during the year 2002, historical, social and economic factors continued to be reflected in limited employment opportunities, continuous migration of skilled Guyanese, an increase in the number of residents living below the poverty line and a decline in general business activity.

He noted that Guyana's economy faced a number of challenges, including the unprecedented upsurge in the level of very serious and fearful crimes and the apparent inability of the security forces in providing effective responses, as well as the disturbingly fatal attacks on members of the Police Force.

Still reeling from the unstable political environment preceding and following the March 2001 general elections, an environment of uncertainty continues to prevail, Bhookmohan observed.

The country's economic progress was also affected by developments in the global economy, moreso by swings in commodity prices.

According to Bhookmohan, real GDP grew by 1.1% last year compared with an overall growth of 2.3% in 2001.

He said that the increase was nevertheless grossly inadequate as Guyana needs an annual growth rate of at lest 10% if a significant input is to be made on reducing the poverty level and impacting positively on the economy.

In terms of future outlook, Bhookmohan said there are no immediate signs of a positive impact on the global economic crisis nor can a dramatic national turn-around in the short term be discerned.

New challenges, he said, will continue to be created and NBS is preparing itself to meet these with a positive outlook for growth and prosperity in the year 2003 and beyond.

Bhookmohan also assured that NBS is a trusted organisation that deals with its members in a fair and transparent manner.

"We look forward to promoting the financial sector as far and wide as possible and have been looking at a number of ideas to ensure that our products and services are more widely available," he told shareholders.

"We remain totally committed to a very fair mortgage pricing strategy and are encouraged by the resultant increasing market share," he said.

According to him, "encouraging home-ownership, mobilising savings, serving our members, supporting our staff, developing new technologies and championing our members' interests are our priorities".

"These are what we have built our reputation on, they define what we stand for, and they are what will drive us forward into the future," he posited.

The Chairman also noted that the board of directors, management and staff of NBS recognised the importance of a strong and stable financial system for the future success of Guyana.