NDB reports pre-tax profit of K1 million

Business, Main Stories

The National – Wednesday, December 29, 2010

 THE National Development Bank (NDB) has announced a pre-tax profit of K1 million at the end of last month, with a final profit of K1.5 million expected at year-end.

Managing director Richard Maru yesterday attributed the projected increase of  K500,000 in the bank’s year-end pre-taxed profit to the confidence that stakeholders, clients and the government have placed in the management and staff of NDB and their ability to deliver.

Maru thanked the national government for allocating K20 million to the NDB to help Papua New Guineans start  small businesses.

He said with the funds from the government and the profit gained, the NDB had  so far lent more than K50 million to small entrepreneurs, adding that they plan to increase the amount next year.

Quoting NDB board chairman William Lamur, Maru said this year had been another strong year for the bank, which was on track to record a profit of K1.5 million this year, compared to the budgeted profit of K1 million, which was 50% above the planned performance.

Maru said with the assistance from the government, more projects would be in place to help small businessmen.

NDB will also open three new branches in Tari, Banz and Vanimo, bringing the number of units across the country to 20.

The new NDB micro banks are located in Port Moresby, Lae, Madang and Wewak.

The profit performance of NDB was achieved through “prudent management of costs and maintained arrears at 2% for accounts in arrears over 90 days”.

The chairman said this was the second year in a row that NDB would record a profit.