Building Society mortgage lending reaches all time high against backdrop of greater emphasis on home ownership
- 2006 annual report
Stabroek News
April 27, 2007
The New Building Society (NBS) earlier this week declared a "highly successful year" in 2006 against the backdrop of an increase in its market share in both mortgages and savings last year.
Increasing emphasis by Guyanese on home ownership during last year witnessed a significant expansion in the mortgage market according to the NBS' annual report for 2006.
The Director/Secretary's report disclosed that the NBS' gross lending for mortgages last year reached $3,187 billion, a 17.2 per cent increase over the 2005 and the highest in the company's history. At the end of last year the mortgage portfolio had reached $15.6 million representing 49.6 per cent of its total assets.
Asserting that the NBS has, over the years, acquired "unparalleled expertise" in residential mortgages the company's report says that it will continue to provide financial support to potential home owners. "Despite all the constraints facing financial institutions the NBS' role in the development of the housing drive in Guyana is very sound and assured," the report said.
The report also noted the high level of excess liquidity as evidenced in the large volume of treasury bills being held with the Bank of Guyana by local financial institutions, including the NBS. It is to be noted that the NBS, by law, can only invest its excess funds in government securities and bank accounts. Despite the low yield on these investments, we were able to once again manage our resources efficiently for the benefit of our membership," the report added.