Written by Royan Abrams
In each of the last three years, the New Building Society (NBS) was able to surpass $3B in profit.
This was disclosed yesterday (Saturday, July 01, 2017) as the bank expanded its operations by opening a $110M facility at Corriverton on the Corentyne.
The NBS opened a branch office in the Corriverton area on October 06, 1997 utilising a rented building. Having enjoyed good growth, it then acquired a building at lot 31, #78 Village, Corentyne. It has now taken the “bold decision” to construct a modern structure at Corriverton.
The opening of the new branch is in addition to other branches located in New Amsterdam, Georgetown, Rose Hall Town, Rosignol, McKenzie and Essequibo which gives the society the advantage of being able to deliver its products and services all across Guyana.
Speaking at the opening ceremony, NBS Chairman, Floyd McDonald disclosed that during the initial period following the establishment of the New Building Society, growth was slow and profit was unsubstantial. He added that nevertheless the society made satisfactory progress as its products and services became better known and confidence in the company grew.
According to the NBS chairman, the company’s total asset by May 01, 1940 was $153,000, and by the year 1960, 1,500 families were given opportunities to own their own homes. He told those in attendance that the role of the NBS in helping to alleviate the housing crises was very visible, since it estimated at that time, that one in every 14 families in Georgetown and its environs were living in a house that was either bought or renovated with a loan from the society.
The NBS chairman also disclosed that the company is doing great financially with assets topping $61B as compared $153,000 in 1940. He related that the NBS reserves stand at $13B, savings at $48B and Mortgage profit is at $37B spreading across ten thousand mortgages with short-term investments and liquid assets totalling approximately $20B.
Minister of Finance, Winston Jordan while delivering the feature address at the commissioning exercise commended NBS for its courageous decision to open an NBS facility in Corriverton, especially given the state of the economy in Berbice.
According to the Finance Minister, the task of the NBS now is to ensure that appropriate and quality financing is accessible and affordable to low-income and other vulnerable groups that are excluded from the formal financial system.
“The New Building Society has an enviable record of contributing to this venture by establishing six of its seven branches in rural communities, and four of them are located in Berbice, and therefore my expectation is that you will continue to provide the necessary financial products and services to the residents of these communities. I hasten to add however that the benefit of this investment to the people of Berbice will only be realised when customers receive the standard and quality of service which they are entitled” he stated.
Minister Jordan also disclosed that it is important the banking charges commensurate with the quality of the services offered, striking a satisfactory balance between bank profitability and the provision of good banking services to all sectors of the community; a challenge that the financial sector in Guyana needs to address immediately.
The recently constructed NBS building at Corriverton consists of three stories; the ground floor houses the staff and offices, the second floor consists of living quarters for officials, and the third floor is a conference hall.
