National Development Bank posts K9.4m profit

By MALUM NALU

THE National Development Bank has announced a record after-tax profit of K9.4 million - after having gone through three insolvencies.

This compares to a mere K1.5m profit in 2010 - a record 620% increase in profit in one year. It is the biggest profit the bank has recorded since 1967.

Among the highlights of 2011 was increasing lending to women in business from K700, 000 in 2010 to K9m in 2011 - a huge 1,000% increase.

Board chairman William Lamur told a dinner in Port Moresby on Monday night that 2011 had certainly been the “defining year for NDB”.

“We have broken all previous financial and operational records,” Lamur said.

“We envision one day being the “development bank” of the Pacific and this is not an unrealistic goal if we get the support of our government, like we did in the historic NDB budget-funding support in the 2012 budget of K130m.

“We assure you of our plans to fund a number of high-impact agriculture products this year, increase funding to women by a further K20m, provide K20m in Stret Pasin Stoa loans in 2012, and announce a number of new and exciting initiatives to seriously empower our people to take advantage of the opportunities now before us, consistent with our Vision 2050 wealth creation aspirations.”

Lamur said 2011 was a very busy and challenging year for NDB, starting off with the staging of the historical indigenous business summit in Kokopo.

He also highlighted:

•   Lending K53m in 2011 - the highest ever NDB had lent in any one year since its inception in 1967 as the agriculture bank;

• Maintaining arrears over 90 days at less than 1%, a performance not achieved by any previous management or board;

• ·      Completing new offices at Banz in Jiwaka province and Tari in Hela;

• ·      Starting rebuilding of new branch offices at Boroko, Wewak and Madang at a cost of K15m;

• ·      Applying for a microbank license from Bank of PNG;

• ·      Growing its good loan book from K89m in 2010 to K121m in 2011;

• ·      Growing net assets from K189m to K228m in 2011; and

• ·      Increasing lending to women in business from K700, 000 in 2010 to K9m in 2011.

“This is a 1,000% increase in lending to women entrepreneurs in one year, a feat that we have never achieved since 1967, and we plan to lend more to women entrepreneurs in 2012,” Lamur said.