NBS racks up $403M profit for 2006
-Achieves record loan disbursements
Kaieteur News
April 24, 2007
The New Building Society (NBS) has enjoyed another positive year financially, with a recorded profit of $403 million during 2006 - representing a 10.4 percent increase over 2005.
Gross mortgage lending for the year was $3.187 billion, the highest in the entity's history, and a 17.2 percent increase over 2005.
Chairman of the Board of Directors, Moen McDoom said that the Society is prepared to play an integral role in promoting economic development during this year, and has put in place the systems, values and people to maintain progress.
He said that the profit was recorded whilst ensuring that both borrowing and saving members benefit from attractive interest rates.
According to the 2006 Annual Report, the mortgage portfolio reflected a 12.2 percent growth and now stands at $15.6 billion, while savings on the other hand grew by 9.1 percent and now stand at $27.3 billion.
The value of total assets grew by 9.2 percent over 2005 to $31.463 billion at the end of 2006.
Despite continued growth in all areas of its operations, McDoom said NBS managed to maintain good asset quality as only $57 million or 0.37 of 1 % of the loan portfolio had to be provided for.
“This excellent achievement was largely due to effective cost control, prudent investment decisions and strict monitoring of our total operations which allowed us to also remain financially sound during 2006…We will continue to look for ways to improve customer service to reward all our members for their loyalty, and to increase our share of the mortgage and savings market to generate further returns for our members,” McDoom stated.
The mortgage market continued to expand in the year 2006.
Director/Secretary, Maurice Arjoon said NBS assisted to fuel this expansion by increasing the value of loans for low-income housing and reducing the interest rate on housing loans.
“These initiatives resulted in record loan disbursements which contributed to greater activity levels in the construction industry, resulting in additional employment and incomes,” Arjoon stated.
Total Interest Income earned for 2006 was $1.767 billion as compared with $1.775 billion in 2005.
NBS Total Savings Accounts Balance was 87 percent of Total Liabilities, increasing by 9.1 percent to $27.278 billion.
A total of 5,604 savings accounts were opened during the year as a result of our ongoing campaign to mobilise savings and encourage thrift among members.
The mortgage portfolio at the end of the year was $15.6 billion, representing 49.6 percent of Total Assets, while the value of Total Assets grew by 9.2 percent from $28.812 billion to $31.463 billion.
Liquid Assets were $13.6 billion and represented 49.8 percent of Total Savings at December 31, 2006.
OPTIMISTIC
NBS recently completed the Rose Hall Branch Office from where services were being offered since November 2006.
McDoom said that plans are on stream to commence work of a new Chief Office Building at the corner of North Road and Avenue of the Republic.
He alluded that because of circumstances outside of the control of NBS, construction is yet to get started.
McDoom also pointed out that the Society's continued growth and development means that employees will have to be more proactive in meeting the needs of the members of NBS.
He stated that support for charitable organisations is evident, since over 100 charities and organisations have benefited from over $7.2 million in donations made in 2006.
“Our corporate responsibility to the community will continue during 2007 as we attempt to improve the quality of life in Guyana,” McDoom stated.
He said that NBS remains optimistic about the future of Guyana, and is cognisant of the role that needs to be played in promoting economic development, particularly with respect to increasing the stock of houses countrywide.
Pointing to the Government's plan to facilitate the provision of more than 1500 low income house lots and regularize approximately 500 squatter settlements, McDoom affirmed NBS' support.
“We are therefore well positioned to take advantage of the opportunities as they present themselves. The Society continues to lead the way in the area of housing and has made mortgage loans most affordable,” McDoom stated.