The New Building Society (NBS) last year notched up a profit of $577 million, the highest in the institution’s history.
Chairman of the New Building Society (NBS) Nanda Gopaul, in his annual report, said that “despite major tax concessions given to the other financial institutions similar to that of the society we were able to hold our own”, noting that the profit recorded last year was $9 million more than the previous year. The report covers the financial year which ended on December 31, 2010.
According to Gopaul, savings balances as at 31st December, 2010 was $35,668 million or 85% of total assets. Total assets grew by 10% to $41,831 million, while reserves stood at $5,935 million. The reserves represent 14 per cent of total assets or 17 per cent of members’ funds. These ratios, Gopaul said, serve to protect members in difficult circumstances. The society’s total liquidity was $16,054 million or 38% of total assets and 44% of members’ funds.
Meanwhile Chief Executive Officer (CEO) Ahmad Khan said that “in 2010, the New Building Society’s investors’ fund grew by $3.358 billion compared to the growth of $1.781 billion reported for the previous year; an increase of 89 per cent.” He said too that the mortgage portfolio grew by 3 per cent compared to 2009. At the end of 2010, the total portfolio represented 51.6 per cent of the total assets.
At end of December 31, 2010, there were 8,195 mortgages in force totalling $21,625 million, which represented 51.7 per cent of the total assets. There were 8,178 mortgages totalling $20,965 million or 55.3 per cent, at the end of the previous year.
Meanwhile, the society’s income from Treasury Bills, Berbice Bridge and investments in foreign markets amounted to $631 million during 2010. “Our investment in the Berbice Bridge continues to be our most lucrative venture,” Khan said. “In 2010, we earned approximately $179 million or 28 per cent of the total income from these investments,” Khan said. According to Khan, “the Berbice Bridge Company Inc made good on its obligation and has remitted fully all returns that are due to us at the end of last year. We have to date earned and received returns totalling approximately $405 million or 22% of the $1.8 billion that the society has invested and this represents the highest rate of return on any of our investments,” the CEO said.
NBS held its 71st Annual General Meeting (AGM), last Saturday at the Umana Yana.
