Global Economic Review:
In 2009 the global economy faced another hard year as there was a reduction in output by many countries such as the United States of America, Canada, Japan and those in Europe. This was due to the global financial crisis that had a huge impact on these economies the hardest being in 2008.

Developing countries such as China and India emerged victorious in 2009 despite the financial setback that occurred in 2008; as both recorded a growth of 8.7 percent and 5.6 percent respectively in 2009.

Due to the overall negative growth performance there was feeble demand in large markets and a 12.3 percent decline in trade volumes which not only affected developing countries, but developed countries as well.

The year 2009 was noted as one for rebuilding and restructuring of the global financial markets.

Local Economic Review:
Despite the global economy performing poorly in 2009, Guyana managed to sustain growth at a rate of 2.3 percent. Even though Guyana’s performance in 2008 was noted as being higher (a 3.1 percent growth), it is still noteworthy that the local economy achieved its fourth consecutive year of positive growth.

Guyana is performing well and remains on a steady course of economic stability in spite of the various challenges that the country is facing which includes the El Nino phenomenon.

The Society's Performance:
It is with great pride that I am reporting that in 2009 the Society has achieved its highest profit ever. We recorded a profit of $568M, a 97% increase from last year’s achievement which was $288M. This performance has resulted in us surpassing all our key financial indicators, strategic goals and operational targets for 2009 due to sound policy directives from the Board of Directors, practice of good corporate governance, sound financial planning and prudent management.

Key Financial Performance Indicators:
The Net Interest Revenue for 2009 was $969M as compared to the $882M that was recorded in 2008. The Society managed to maintain its General Administrative expenses at a minimum for 2009 which amounted to $368M, a small increase of 6% compared to last year’s figure.

Our Total Investors’ Balances summed up at $32.3B for the year 2009, an increase of 5.8% from that of 2008. This has again proved the confidence our Members have in us catering for their needs.

The Society’s Income from Investments amounted to $580M for the year 2009. It should be noted that $161M alone came from our investment in the Berbice River Bridge. The Society has to date received all interest payable from this investment which amounted to $226M, a little over 12% of the $1.8B that the Society has invested.

Total Mortgages for the year was $20.9B which is a 10% increase from 2008.

In 2009 the Society paid out $3.92B in mortgage advances, the highest in any one year, as compared to the $3.87B in 2008.

The Society earned $1.5B in mortgage interest which was 65% of total interest income for the year 2009. The mortgage interest earned provided a 115% coverage of the $1.3B paid to investors and was 57% of the total interest income of $2.2B

The balance on loans outstanding for more than 180 days was a meagre 0.5% of the institution’s Total Mortgages. This percentage reflects a healthy mortgage portfolio.

Total Assets for 2009 amounted to $37.9B which is an increase of 6.6% against last year’s figure while the Total Reserves for 2009 amounted to $5.3B which is an increase of 11.8% from 2008.

The Society’s Assets maturing within 1 year is $14.9B and is 46% of total Investors’ funds.

The Society’s reserves continue to act as a cushion against any unforeseen expenses that the institution may incur. The financial performance of the Society continues to be sound and this is due to the implementation of updated business procedures, a committed workforce, advancement of technology and most importantly, strong leadership.

Customer Service and Operations:
Customer service is highly essential to the success of an organization and is no different when it comes to the Society. The Society continues to aim for a high level of customer service and satisfaction as meeting our Members expectations is vital to our overall success. It is by serving our customers well that the Society will be able to achieve its goals and objectives. Delivering quality customer service is based on the high motivational level of our employees and ensuring they are part of the decision making process. It is through this process that we can communicate our message to our Members and ensure their overall satisfaction with our operations.

Human Resources:
At the Society, we are fully aware of how valuable each and every employee is to the success of the institution. It is through their combined efforts that we have been able to provide a high quality service for our valued customers. In was noted that happy employees are hard working employees and in order to keep our employees happy, motivation is the key. This is achieved through our policies and reward systems. The Society also notes the importance of enhancing one’s skills and we provide the necessary tools and support needed in encouraging our employees to further their studies professionally and or academically.

We follow a strict code of ethics with respect to our employees as we do not discriminate against any gender, religion or ethnicity; rather we choose to assess the skills and talents of each employee in our recruitment practices.

Technology:
In today’s changing world technology has been in the forefront in helping organizations achieve their overall goals. At the Society technology is used as a guiding tool in the achievement of our business strategies.

In 2009 upgrading our systems was not necessary as it was in 2008 when we did so, thereby ensuring the smooth flow of information between the various branches. It is with the use of this upgrade that the Society has managed to maintain the integrity of its systems at all of its locations.

Community Involvement:
The New Building Society has always been mindful of its civic responsibilities. It is a way for the institution to show their appreciation for the support they have been given by their customers and the general public. This year was no different as the Society generously donated $5.9M to many deserving non-profit organizations, schools, orphanages, non-governmental organizations, etc.

Future Outlook:
We at the Society look at 2010 with optimism; as we anticipate our state of the art Head Office to be completed. This new edifice will enhance our image and strategically position us to serve our members in a more spacious and comfortable environment. We see a bright and prosperous year ahead, one that will further enrich the lives of our Members. Keeping in mind the global changes that are constantly occurring, we have equipped ourselves with the necessary tools in order to enable the Society to continuously deliver high quality customer service, which will guarantee their satisfaction.

Acknowledgements:
I would like to take this opportunity to convey my sincere appreciation to our Members for their continued support and confidence placed in the Society in 2009 and to the Management and Staff who have steadfastly shown dedication and commitment to their work.

I would also like to thank the Chairman and my fellow Directors for their support and guidance throughout 2009 and I eagerly look forward to another fruitful year ahead.