BBS demutualisation gathers pace

BBS recorded a 12-percent reduction in profit to P64 million for the year ended 31 March 2011, despite growth of its main loan book from P1.4 to P1.63 billion.

The Society blamed the reduced profitability on the cumulative reduction in interest rates during 2010, a P3-million drop in non-interest income as well as increases attributable to the higher VAT and steeper personnel costs.  According to Managing Director, Pius Molefe, the cocktail of factors and the Society's inability to outmanoeuvre them are another reminder of BBS' strong need to transform into a commercial bank.