GSB's deposits rise to $175 million

Samuda

THE amount of deposits held by the Government Savings Bank (GSB) increased by $63.6 million over the year 1999, bringing the total deposits at the end of the year 2000 to $174.8 million.

This was attributed to the increased focus on savings and interest bearing instruments by members who are largely employees of Central Government and Government companies and their relatives.

Shares grew by 19 per cent ($88.2) over 1999 to $559.2 million.

The loan portfolio also increased over the previous year, totalling $548.7 million at the end of the year 2000, an increase of $133.5 million over the year 1999. The loans disbursed however, amounted to $332.4 million (including $3.7 million in mortgages), which was $75.6 million more than in 1999.

According to GSB president Christopher Samuda, many members lost their jobs during 2000, partially as a result of the creation of more executive agencies, and this had an impact on the level of delinquency. Notwithstanding, delinquency "has been controlled given the relentless efforts to collect bad debts." GSB's collectors assisted in recovering the sum of $1,245,356. Motor vehicles were repossessed and sold realising the sum of $685,721. Insurance policies and other financial instruments were encashed valuing $528,069.51.

The consolidation of Metropolis Credit Union accounts with that of GSB's was completed for the year 2000 and the financial statements were presented in consolidated form. GSB agreed to accept certain of the property and other assets and to honour the engagements of the Metropolis Co-operative Credit Union and to issue to each member of that co-operative paid up shares equal to the amount standing to the credit of each member in the share ledger of Metropolis on the date when the transfer of engagement becomes effective.

Total assets of the credit union grew to $886 million at year-end. Investments rose from $243.63 million to $300.31 million. Loans to members increased to $544.83 million from $415.14 million. Fixed assets declined from $7.04 million to $5.95 million while other non-earning assets increased to $30.98 million from $19.17 million.

The loan portfolio grew by $129.7 million or 31.2 per cent in 2000 (before the addition of Metropolis), compared with $84 million (26 per cent) in 1999. Although non-earning assets grew to 4.2 per cent of total assets, GSB was still well within the standard of seven per cent of total assets.

During the year 2000, the premier savings product, the Supreme Saver, was successfully introduced. It provided the option of earning interest on savings at the rate of 14 per cent per annum with the added feature of the interest being calculated daily and credited monthly to the saver's account. The compounding effect has resulted in an effective rate of 14. 93 per cent per annum.

The Easi-Loan product offering a line of credit up to $250,000, was launched within the year. The facility is GSB's answer to the credit card and operates in a similar way. Members enjoy the facility while paying only 5 per cent on the outstanding balance plus interest.

Membership grew by 3,102 during the review period, taking the number of members at the end of the year to 17,026, an increase of 20.7 per cent over the previous year. Some 1,862 members from the former Metropolis Credit Union boosted the figures.

Back to Business