NDB posts K9.4m net profit in 2011

By MALUM NALU
THE National Development Bank has announced a record after-tax profit of K9.4 million after going through three insolvencies.
This compared to a mere K1.5 million profit in 2010 –  a record 620% increase in profit in one year.
It was the biggest profit the bank has recorded since 1967.
Among the highlights of last year was increased lending to businesswomen from K700,000 in 2010 to K9 million last year, representing a 1,000% increase.
Board chairman William Lamur told a dinner in Port Moresby on Monday night that last year 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 K130 million.
“We assure you of our plans to fund a number of high-impact agricultural products this year, increase funding to women by a further K20 million, provide K20 million in Stret Pasin Stoa loans this year.
“We will 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 last year was a very busy and challenging one for NDB, starting off with the staging of the historic indigenous business summit in Kokopo.
He also highlighted:
g    Lending K53 million last year – the highest ever NDB had lent in any one year since its inception in 1967 as an agricultural bank;
g    Maintaining arrears over 90 days at less than 1%, a performance not achieved by any previous management or board;
g    Completing new offices at Banz in Jiwaka province and Tari in Hela;
g    Start the rebuilding of new branch offices at Boroko, Wewak and Madang at a cost of K15 million;
g    Applying for a microbank licence from Bank of PNG;
g    Growing its good loan book from K89 million in 2010 to K121 million in 2011;
g    Growing net assets from K189 million to K228 million last year; and
g    Increasing lending to businesswomen from K700, 000 in 2010 to K9 million last year