NBS records another successful year
Guyana Chronicle
April 20, 2004
THE New Building Society Ltd (NBS) recorded a net profit of $255M for last year, and according to Chairman of the Board, Mr. Ramdial Bhookmohan, this excellent achievement was due primarily to cost control, beneficial investment decisions and prudent risk management and monitoring processes.
Noting that NBS “had another successful year” last year, he told shareholders at the company’s 64th Annual General Meeting (AGM) at the Tower Hotel in Georgetown yesterday afternoon, that this excellent performance was also due to NBS maintaining a high and efficient level of service to its members.
“As expected, resulting from our aggressive marketing strategy, exemplary and efficient customer service, and very competitive rates of interest, notwithstanding the positive input of the Government’s housing drive, our share of deposit business and the mortgage market continue to reflect increases,” the NBS Chairman proudly informed the large gathering which included employees, shareholders and special invitees.
He pointed out that the Deposit Business’ grew in 2003 by 10% to $20.780B, while the Mortgage Portfolio moved from $9.832B to $10.920B, an increase of $1.088B or 11%.
It was noted that asset quality continued to be very high as only $52M or .47 of 1% of the loan portfolio had to be provided for loan losses.
“Our total assets have grown in 2003 by 10% to $23.699 billion, maintaining our position as the third largest financial institution in Guyana,” Bhookmohan boasted.
He indicated that the $255M net profit achieved for the year ended December 31, 2003 reflected a 19% reduction in the profit NBS made the previous year.
The Chairman, however, assured that this reduction “was intentional”, and was in an effort at deliberately maintaining the lowest spread in the Financial Sector, simultaneously paying the highest rate of interest on Deposit Accounts and charging the lowest rate of interest on mortgage loans.
The Chairman also disclosed that in the interest of good governance and financial probity, the Board of Directors requested that the Finance Minister appoint the Bank of Guyana to inspect the financial records of the NBS and to undertake ‘on site inspections’.
He noted that the Bank of Guyana carried out that inspection during the months of July and August last year. “While we are yet to receive the final report on the inspection, we have been advised that no major discrepancies were detected,” he said.
The Chairman also announced that, emanating from the company’s expansion and enhancement efforts, the properties at Lots 1 and 2 North Road and Avenue of the Republic, Georgetown, have recently been acquired and “will subsequently replace our existing Chief Office from which we have operated for over 64 years”.
“Our plans include the construction of a modern ‘state-of-the-art’ building which is expected to commence next year and result in providing the most efficient service possible to you our members,” Bhookmohan told the appreciative gathering.
“The Board of Directors, Management and Staff recognise the importance of a strong and stable financial system for the future success of our country; we are therefore committed to the maintenance of such a system and the preservation of its integrity,” he assured shareholders.
He also gave the assurance that the company continues to develop more innovative ways of reaching new members and satisfying existing membership.
“We re-assess our strategic aims and goals which have resulted in a close focus on giving value back to members whilst implementing a far more commercial approach to running the business of the NBS,” the Chairman asserted.
In terms of donations, Bhookmohan alluded to the fact that NBS has always been in the forefront of supporting many charitable and public benefit causes at the national level.
To this end, he said nearly 115 charities and organisations have benefited from over $5.9M in donations made in 2003. “Our contributions to various worthwhile causes will continue as we attempt to improve the quality of life in Guyana,” he said.
In terms of future outlook, Bhookmohan said there are no immediate signs of a strong economic recovery, despite some improvement in the crime situation and the political environment.
As such, he feels new challenges will continue to emerge and NBS is preparing itself to meet those challenges with a positive outlook for growth and prosperity in the year 2004 and beyond.
He contended 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 service are more widely available (and) we remain totally committed to a very fair mortgage pricing strategy and are encouraged by the resultant increasing market share,” he stated. (MARK RAMOTAR)