NBS surplus up by 22% to $993M

The New Building Society (NBS) ended last year with a surplus of $993 million compared to $813 million in the preceding year, a rise of 22%.

Chief Executive Officer, Ahmad M Khan in his report to the NBS AGM on April 26, said the $993 million surplus was the highest ever recorded in the institution’s history.

The NBS’s asset base has appreciated by 10% to $54 billion. He added that the demand for mortgages continued and the Society disbursed over $7.8 billion in mortgages last year compared to $6.8 billion in the previous year.

Total mortgage loans at the end of 2013 was $32.9 billion or 61% of total assets at the end of the year. While the mortgage portfolio has been growing, Khan said that the reserve for loan losses to gross loans ratio has been declining correspondingly.

Ahmad M Khan
Ahmad M Khan

“This is testimony that the Society’s Mortgage Portfolio is made up of quality loans. It is also a reflection of our mutuality of working with mortgagors in their time of difficulties to resolve their situations”, he asserted.

The institution’s overall portfolio increased by $3.7 billion to $44.7 billion at the end of last year.

Khan said that financial institutions in Guyana are facing an “uphill task” in conducting foreign currency business in light of Guyana being unable to amend its anti-money laundering legislation. He said that the Society remain optimistic that the major stakeholders will be able to resolve the stalemate. Nevertheless, he said that the NBS has taken steps to bolster its internal policies and procedures aimed at detecting money laundering.

The NBS’s accounts show that interest income on loan assets rose from $1.67 billion in 2012 to $1.9 billion last year. Income on investments declined from $457 million in 2012 to $290 million last year. The interest expense also fell from $924 million in 2012 to $894 million last year.

 

More in Local News

Comments

About these comments

The comments section is intended to provide a forum for reasoned and reasonable debate on the newspaper's content and is an extension of the newspaper and what it has become well known for over its history: accuracy, balance and fairness. We reserve the right to edit or delete comments which contain attacks on other users, slander, coarse language and profanity, and gratuitous and incendiary references to race and ethnicity.

Get the day's headlines from SN in your inbox every morning:

Most Read This Week

  1. The medical school sign on the Buddy’s building

    Buddy’s Pool Hall, Night Club closed after business falls

  2. A police officer attempts to escort Rushelle Gittens out of the court compound

    Woman threatens to kill cop at city court complex

  3. Lakeram Kewlachand

    Gangaram man takes his own life

  4. Colin Rodney

    Cop charged with taking bribes

  5. Citizens fleeing country due to crime, IAC says

  6. The Rio Inn at Forshaw and Oronoque Streets

    Teen shot dead outside Rio nightclub

  7. Courtenay Griffith’s home in Lodge that is earmarked to be demolished.

    City to tear down 52 derelict buildings

  8. 15-year-old charged with murdering suspect in sister’s abuse

  9. Barry Dataram

    Who is to blame for Dataram escape?


Recommended For You