New Building Society targets $1B profit for 2014

NEW Building Society (NBS), after a record breaking 2013 in which it made the highest ever in history, is targeting to exceed a $1B profit for 2014.That was disclosed at its most recent Annual General Meeting (AGM) by the Chairman, Mr. Moen McDoom who said the 2013 figure was $993M.
He said the lending institution continues to build on its successes of the past years and will, hopefully, exceed the target.
In his report, he said the institution’s financial performance has remained exceedingly strong, achieving an even higher level, continuing to balance delivering value and service to its customers, and maintaining its financial strength for the long term.
“…the Society is in capable hands to attain much greater heights in the foreseeable future and overcoming challenges that lie ahead,” he stated.
According to him, aggressive competition in the financial services sector, compounded by high levels of liquidity, resulting in low yields on investments in Treasury Bills, did not deter the NBS from delivering “excellent” results in 2013.
McDoom admitted, though, that the state of the global economy also posed a challenge but NBS aims at building on the trust of its customers.
“The interest of our customers and members will always come first. We continue to believe in helping people have better lives. The views of our customers and members form an integral part of our decision making process,” McDoom said.

Support and loyalty
He expressed appreciation for the “support and loyalty” of customers and members, which was “tremendous” last year.
“I wish to go on record to thank everyone for all they have done, in their respective roles. Cooperation and commitment at every level have resulted in the resounding financial fortunes of the New Building Society,” Mc Doom acknowledged.
The Chairman said the work of NBS, given the fact that it is a “grassroots Society,” has, over the years, made contributions to the advancement of communities.
He said: “For 2013, we have donated in excess of $6M to several charitable organisations, with emphasis on helping those people who are more vulnerable, particularly the elderly, children and people with disabilities.
“We have also supported recreational projects that focus on developing the talent of our young sports enthusiasts. In 2013, we renewed our sponsorship of the NBS 40-Overs Cricket Tournament in Georgetown and Berbice,” Mc Doom pointed out.
About the way forward, the Chairman said the Society anticipates continuation of Government’s housing drive across Guyana, which will provide real opportunities for it to increase the scale of its mortgage financing to a growing number of customers and members.
McDoom highlighted that the Society also expects the trend of positive yields from its investment in Treasury Bills to be maintained.
He said: “Though the financial services sector continues to be saddled with high liquidity, compounded further with the fact that the Society can only invest in a number of instruments, we began to see increase yields on Treasury Bills.”
The Society’s total assets at the end of 2013 were $54B, an increase from $49B in 2012. In 2013, mortgages accounted for 61 percent of that total, up from 57 percent in the previous year, while liquid assets made up 30 percent of it, a decrease from 34 percent in 2012.

Liquid assets
The value of NBS liquid assets was $16.4B at the end of 2013, down from $16.7B.
In 2013, it disbursed $7.8B in mortgages to qualified home owners, which was more than the $6.8B in 2012.
The Society’s overall portfolio rose by $3.7B and stood at $44.7B at the end of last year, compared to $41B in the previous year, and its total reserves were $9B at the end of 2013, up from $7.8B in 2012, and represented 20 percent of the investors’ balance.
The number of accounts in arrears at the end of last year was 1,393, with a default value of $58M, a decrease from 1,529 valued at $68M.
The Society’s finances for 2013 were given a positive review by the external auditors’ chartered accountants, Maurice Solomon and Company.
NBS was incorporated in 1940 through Chapter 36:21 of the Laws of Guyana and, in the process, took over the assets of its forerunner, the British Guiana Building Society, which consisted of 39 buildings valuing $77,960.
Today NBS boasts a strong financial position from where its assets have grown. It has seven branches located in Georgetown, New Amsterdam, Rosignol, Rose Hall, Corriverton, Mackenzie and Essequibo.