GBTI announces higher profits
Stabroek News
March 27, 2003
The Guyana Bank for Trade and Industry (GBTI) has seen a further increase in its after- tax profits in 2002 even in the face of a continuing decline in interest income.
The bank's after-tax profits moved from $146M in 2001 to $170M in 2002 - a 16% increase on 2001 and a 16.7% increase on the 2000 levels.
Management had last year described the 2001 results as a reflection of sound income generation capacity and prudent management of its affairs.
While GBTI's net interest and other income increased marginally from $1.28B in 2001 to reach $1.29B in 2002, the bank's income from loans and advances saw a further decline from $1.2B in 2001 to reach $894M, a decline of 26 per cent. Income from loans and advances had fallen by $116M in 2001 against 2000 levels. The fall in 2002 reflects a 33% decline against 2000 levels.
The decline in income from loans and advances in 2001 had been attributed to the bank's stringent application of the income recognition policy of the Financial Institutions Act relating to non-accrual loans and the reduction on interest rates on loans in specific sectors. That year, the bank reduced its exposure in the agriculture sector by $500M. An abridged version of the company's financial statements published in the daily newspapers on Monday omitted any reference to provisions for loan losses.
Again in 2002, the bank saw a decline in its returns on investments with securities and central bank deposits bringing in $492.6M compared with $664.4M in 2001 and $736M in 2000. This is directly as a result of the reduction in the rate of treasury bills.
Total interest income was $1.59B as against $1.97B the previous year. GBTI's income from other sources increased from $47M in 2000 and $91M in 2001 to $210M in 2002, an increase of 346% and 130% respectively.
Interest income for the bank slid further reaching $817.5M in 2002 against $$1.1B in 2001. Net interest income was $779.6M against $852.7M in 2001. Net profit before taxes was $257.9M, lower than the 2001 level of $274.5M. However, other income moved from $432M in 2001 to reach $517M in 2002.
The bank's deposits grew further from $19.6B to reach $20.4B. However, the banks' policy to attract stable and longer-term funds has seen a further decline in its term deposits moving from $7B in 2001 to $6.7B in 2002. Term deposits had already declined by 8.3% in 2001.
The bank's earnings per share increased from $3.65 to $4.27.
