Where did the profit come from?
I would like to make some observations on NBS accounts for the benefit of its members. The Board has announced record profits of $772 million for the year 2011 but this achievement was made against declining revenues of $123 million for 2011 when compared with 2010.
Income on mortgage loans declined by $16 million although there was record lending of $4.2 Billon for the year. Income on its investments and its cash resources also declined.
So how come the profits increased by a whopping $194 million for the year against this background? It is because the members received $352 million less in interest on their hard earned savings for the year in review.
As I understand, NBS is a mutual company and the members have always benefitted from a fair return on their investments since they do not participate in the profits of NBS.
The record profits were thus made at the expense of the Saving Members.