INTRODUCTION
We are pleased to advise that the business model and associated strategies being pursued over the past few years have resulted in the financial year 2005 being another successful one for the National Bank of Industry and Commerce Limited. We maintained our prudent and considered approach to risk management and our focus on profitable revenue growth and tight cost controls.
FINANCIAL PERFORMANCE
Our efforts this year resulted in an increase of 47.45% in profits after tax to G$791 million compared to G$536 million in 2004. Return on Assets improved to 1.33%; Return on Equity to a satisfying 20.55% and our Earnings per Share increased from G$1.79 to G$2.64.
CUSTOMER SERVICE
We are very pleased to advise that according to the latest independent Customer Service Survey conducted in 2005, our bank has regained the number one position in customer service among financial institutions operating in Guyana. The overall rating secured by our bank was our best rating for the past three years and reflects our continued commitment to service excellence.
HUMAN RESOURCES
We have been consistently reviewing our policies and practices in order to ensure we nurture an environment where we can maximize the use of our human resources. Like other companies operating in Guyana, the bank was faced with a high level of turnover during 2005. As a result, our recruitment policy was reviewed to ensure that we recruit the best applicants for the organization and have been conducting one-on-one interviews with staff regarding their general well being in the organization.
Our training activities were intensified during 2005 with staff at all levels targeted and there was added emphasis on those who assumed new positions as well as those who were new to the Bank's employ. Staff at the Education Centre worked diligently in this regard - programme content was revised/merged, additional sessions were scheduled based on needs and strategies were reviewed for effectiveness. On-the-job training was provided as far as practicable.
In addition to the training provided by our local staff, overseas courses/seminars/meetings were accessed - mostly at out parent company in Trinidad; while experienced professionals from Trinidad also visited Guyana to conduct general training in a number of operational and credit related areas.
The Bank's scholarship plans continue to attract employees. This year, one (1) Officer who was sponsored under the Stan Affonso Scholarship Plan completed a degree programme in Business Management at the University of Guyana, and three (3) Officers sponsored for the Associate of the Institute of Canadian Bankers programme, have been conferred with the AICB Diploma. Through the Advanced Scholarship Plan, one (1) Officer has embarked on a Masters of Arts programme in Corporate Communication at Bournemouth University, England.
Our commitment to human resource development remains resolute as we strive to satisfy the personal and professional goals of our staff.
TECHNOLOGY
Important upgrades of our main computer system, network infrastructure and ancillary systems were successfully undertaken to improve system security and improve the bank's ability to deliver the quality of customer service demanded by the modern, discerning customer. In this regard, the core hardware applications, AS400 and EDGE were upgraded to cater for increased customer growth and to improve system functionality. This was done along with the introduction of Active Directory, remote management and the installation of Internet firewalls. One of the benefits of these enhancements is a standard platform across all branches with improved virus protection.
Further additions were made to the Automatic Banking Network bringing the total to 24 by the placing of one (1) ABM at the Texaco service station on Mandela Avenue and two (2) Cash Dispensers, one each at our Rose Hall and Camp Street branches respectively. Enhancements were made to the Telebanking system to increase the number of available merchants and telephone access lines to accommodate increased usage.
OPERATIONS
We continue to review and re-engineer our systems and procedures with particular emphasis on improving efficiency, thereby enhancing customer service. In this regard two new UNISYS Proof machines were installed to bolster both the efficiency and effectiveness of daily transaction processing and larger Night Deposit safes were installed at the Water Street and New Amsterdam branches.
These efforts were complemented by our focus on the use of our electronic bill-payment products - Debit Point-of-Sale and TeleDirect - through our ACCESS 24 service to effectively reduce the risk of carrying cash, as well as the time wasted waiting in line. Our thrust to promote our electronic banking products and services have resulted in a 31% increase in the number of transactions at the Point-of-Sale terminals when compared to the same period last year and a 192% increase in the number of customers signing up for our Telebanking Service. We expect this trend to continue in 2006.
PREMISES
Customers and staff of our New Amsterdam branch were pleased with the more attractive and modern environment created by the redesign and refurbishment of the internal layout of that branch. The new layout has increased customer space to accommodate the growing customer base while bringing the appearance of the branch in line with NBIC's standards.
We have completed a review of our Georgetown operations so as to rationalize those operations and enable us to provide a better standard of service to our customers who utilize those branches. In this regard, a suitable site has been purchased at the corner of Camp and Robb Streets for the construction of a new branch. Construction is expected to commence in early 2006.
FUTURE OUTLOOK
We have every reason to believe that the consistent improvements in the financial and other areas of performance that have been realized over the past few years will continue into the medium term. We are very cognizant however, that the Bank does not operate in isolation and our own performance is dependant not only on our ability to provide our customers with the quality and variety of service and products they demand, but also on the success in business and personal lives of those customers, the performance of the economy as a whole and the stability of the political and social environment in which we operate.
As we face the elections of 2006 we hope that the dreams and aspirations of the Guyanese people will be kept foremost in the minds of all concerned.
ACKNOWLEDGEMENT
I would like to thank the management and staff for their support, commitment and dedication and, the Board of Directors for their guidance and counsel throughout the past year.
Michael Archibald Managing Director October 17, 2005