NBS nets $255M after tax
Guyana Chronicle
April 20, 2004
THE New Building Society Ltd (NBS) has recorded a net profit of $255M for last year.
According to Chairman of the Board, Mr. Ramdial Bhookmohan, this excellent achievement is due primarily to cost control, beneficial investment decisions and prudent risk management and monitoring processes.
Noting that NBS "had another successful year" last year, Bhookmohan told shareholders at the company's 64th Annual General Meeting (AGM), which was held at the Hotel Tower 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 reported. He indicated that the $255M net profit achieved for the end 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," the Chairman said.