GBTI records $506M profit
-- confirms new head office plan
Guyana Chronicle
March 21, 2007
THE Guyana Bank for Trade and Industry Limited (GBTI) has reported a $506M after tax profit for last year, and Chairman Mr. Robin Stoby took pride in informing shareholders this was another “impressive performance” by the bank, one that “exceeded” that projected for 2006.
“This performance has again exceeded that which was projected for the year 2006 and I am happy to report a profit after tax of $506M,” Stoby told shareholders at the GBTI’s 19th Annual General Meeting at Le Meridien Pegasus Hotel, Georgetown Monday evening.
As a result of this achievement, he said the Board of Directors has declared a dividend of $4 per share.
Noting that the bank had a “very successful year” last year, Stoby said this success has set the stage for GBTI to proceed this year with building a four-storey head office in Eve Leary, Georgetown.
“Such achievements and plans are only possible because of the loyalty and support of our customers, our hardworking staff and you our shareholders,” he said in his Chairman’s address at the AGM.
Chief Executive Officer of GBTI, Mr. Radhakrishna Sharma said the construction of the bank’s new head office is expected to commence during the first half of this year.
“We are very excited about this project with its ability to solidify the bank’s presence on the market and add greater value to the service we offer our customers,” he told shareholders.
“Our strategy for the growth and expansion of the bank remains grounded in our foundation of unmatched customer convenience and expertise, high service quality, innovation and a variety of financial products and services delivered as a single relationship.”
“We are well placed for further expansion and project to invest substantially towards developing and delivering superior solutions for our customers,” the CEO asserted.
Additionally, he said GBTI will be continuing its branch expansion activities in keeping with its objectives of “taking banking facilities to communities across the country.”
GBTI expects new synergy in the future from both the branch expansion plan and information technology investment by way of increasing the bank’s geographical reach, increasing volume, reducing unit cost per transaction and shortening in-bank service time, he said.
Sharma said 2006 could best be described as “one of ongoing consolidation and positioning for the bank, as during the year “we successfully completed a number of targeted initiatives that have solidified the base for the bank to progress in the years ahead”.
He also said 2006 was a “defining year for GBTI as demonstrated by our record financial performance”.
“Return on equity was 14.56% and earnings per share increased by $4.29 (and) on this result, dividend to shareholders increased by 23%.”
“Profit after tax for the year amounted to $506M making 2006 one of the most profitable years for the bank (and) this result is $170M or 51% above the performance achieved in 2001 and may be directly correlated to our customers’ appreciation of our high standards which continue to attract new business,” he told the shareholders.
He also reported that the improvement in the net profit for 2006 resulted in an increase in the return on average assets from 1.2 % in 2005 to 1.52% in 2006.
“The bank’s performance in 2006 serves as a tangible demonstration of our success as a growing institution marked by market leadership positions across the various sectors, a commitment to financial discipline and having the benefit of a strong, experienced team dedicated to the building of a vibrant and profitable bank,” he posited.
He said total deposits of the banking sector rose by 8.5% for the period at September 2006 to reach $152.1B, compared to the 7.0% increase recorded for the corresponding period in 2005.
Private sector deposits, which account for some 75% of total deposits, grew by 12.6% during the year, compared to the 7.0% recorded for the corresponding period in 2005. Savings deposits grew by 9.4% to $86.9B, while term deposits increased by 0.1% to $33.9B at the end of the period.
With regards to lending, Sharma said the total Loans and Advances of the banking sector increased by $4.1B to reach $44.4B at September 2006. An analysis of the subgroups shows that $1.1B of this growth occurred in the construction and engineering sector, while mining and quarrying, housing, automobile, entertainment and catering each recorded increases of between $400M and $600M.
He said, too, that the foreign exchange market remained very active during the year, though the aggregate volume traded declined over the corresponding period in 2005.
Total cambio transactions at GBTI amounted to US$646M at September 2006, 6.8% lower than the US$694M recorded for the same period in 2005.
Meanwhile, Stoby said GBTI has been bold in 2006, having opened a branch in Lethem in the Rupununi and its decision and timing has been validated by the re-start of the construction of the bridge over the border Takutu River between Brazil and Guyana.
He noted that the bank also introduced the Visa Travel Classic Card with the most impressive logo of the Kaieteur Falls.
“This card, we believe, is another step in the modernisation of our bank in particular, and of the banking sector in general,” Stoby asserted.