New Building Society reports $403 million profit for 2006
Stabroek News
April 24, 2007
The New Building Society recorded a profit of $403 million for the year 2006, an increase of 10.4% over the previous year's results.
In his report to the members in the company's annual report the Director/Secretary Mr. M.L. Arjoon stated that total interest income earned for the financial year 2006 was $1.767 billion as compared with $1.775 billion in 2005.
Total interest expense was $1.060 billion which represented 60% of total interest income (2005-58%). In other words for every $100 in income received by NBS, $60 went back to the member. It is therefore advantageous for members to save with the NBS, Mr. Arjoon noted.
General Administrative Expenses incurred for the year were $305 million, an increase of $19 million or 7% over 2005.
The Director/Secretary reported that the Total Savings Accounts Balance was 87% of Total Liabilities, increasing by 9.1% to $27.278 billion. A total of 5,604 savings accounts were opened during the year as a result of an ongoing campaign to mobilise savings and encourage thrift among members.
Gross mortgage lending for the year was $3.187 billion, the highest in the history of the Society, reflecting an increase of 17.2% over 2005. The mortgage portfolio at the end of the year was $15.6 billion representing 49.6% of Total Assets.
The value of Total Assets grew by 9.2% from $28.812 billion to $31.463 billion. Liquid Assets were $13.6 billion representing 49.8% of Total Savings at December 31, 2006. Liquid Assets, Arjoon noted, are utilised to meet requests for withdrawals from savings accounts, to make mortgage loans to borrowers and to fund the business activities of the Society.
Gross Reserves which include general and revaluation reserves totalled $3.988 billion, an increase of 11.2% over financial 2005 and 14.6% of Members' Savings. These Reserves are used to provide a buffer against any losses that may arise from the Society's activities, the Director\ Secretary said.