The New Building Society (NBS) recorded a profit of $1.026 billion last year, a 14.6% decline from 2018’s figure of $1.201 billion.
The period also saw a sharp rise in provision for impairment of loan assets.
The financial statements of the mortgage institution, which were published in the March 25 edition of the Guyana Chronicle, show that interest income on loan assets rose from $2.5 billion in 2018 to $2.6 billion last year. Income from investments, however, declined from $192.5 million to $161.3 million and income from cash resources also fell from $290.3 million in 2018 to $267.6 million last year.
The interest expense for 2018 was $1.05 billion and this increased to $1.06 billion last year. Total interest revenue increased from $1.94 billion in 2018 to $1.99 billion last year. Taking other income into consideration, the NBS’s total net income for last year was $2.033 billion compared to $1.95 billion in 2018.
Meanwhile, total operating expenses rose from $757 million in 2018 to $1 billion last year, resulting in profit for 2019 being $1.026 billion compared to $1.201 billion in 2018. The credit impairment provision on loan assets rose from $13 million in 2018 to $114 million last year. While there was a credit impairment provision of $11 million on investments for 2018, the figure was zero for last year.
The institution’s loan assets rose from $40 billion in 2018 to $41.4 billion last year.
