GBTI after-tax profit up 51%
Stabroek News
March 22, 2007
The Guyana Bank for Trade and Industry (GBTI) recorded a 51% increase in profit after tax for 2006, which was $506 million, compared to $334.2 million in 2005.
Shareholders were given a final dividend of $4 per share, with $2 of interim dividends already paid, compared with the $1.50 in interim dividend paid in 2005 and the final dividend of $1.75.
GBTI released its financial statements to shareholders at its 19th Annual General Meeting on Monday at Le Meridien Pegasus.
Chief Executive Officer of the bank Radhakrishna Sharma said in the 2006 Annual Report that the return on equity was 14.56% and earnings per share increased by $4.29. As a result, dividend to shareholders increased by 23%.
Sharma said, "the year 2006 could be best described as one of ongoing consolidated 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."
Revenues for GBTI increased across the board to $2.7 billion or 15.5% over 2005; loan interest income increased by $122 million, investment income by $126 million, and other income by $174 million. On the other hand, total expenditure was $1.96 billion with interest expense accounting for $748 million, an increase of 13.2% over 2005.
GBTI's total assets stand at $35.7 billion and its liabilities at $33.9 billion compared with total assets of $30.15 billion and liabilities of $28.5 billion in 2005. The number of ordinary shares issued and fully paid is 40 million and earnings per share in dollars for 2006 was $12.65 compare to $8.36 in 2005.
The total deposits of the banking sector rose by 8.5% for the period at September 2006 to reach $152.1 billion, Sharma said, compared with the seven percent increase, recorded for the corresponding period in 2005. Notwithstanding, GBTI's deposit base grew by $4.4 billion or 16.3% for the year to $31.3 billion. This growth rate the chief executive officer said betters the 8.5% recorded by the banking sector.
The savings deposit category continues to record strong growth with $2.3 billion in 2006 compare to $1.8 billion in 2005, Sharma said.
GBTI's share of total commercial banks deposits has increased from 19.2% at December 2005 compared with 20.2% at September 2006.
On the other hand, private sector deposits, which account for some 75% of total deposits, grew by 12.6% during the year, compared to the seven percent recorded for the corresponding period in 2005. Savings deposits were said to grow by 9.4% to $86.9 billion, while term deposits increased by 0.1% to $33.9 billion at the end of the period.
GBTI has begun building its over $1 billion four-storey corporate head office, opposite Le Meridien Pegasus.