GBTI posts Gy$ 1.8B after-tax profit – CEO cites uncertainty in gold, sugar industries

By Svetlana Marshall –

The Guyana Bank for Trade and Industry (GBTI) has recorded an aftertax profit of Gy$ 1.814 billion in 2012, representing a 32 per cent increase when compared to the bank’s returns for 2011.
GBTI Chief Executive Officer John Tracey made this disclosure in the bank’s 2012 report. He said the return on equity stood at 20.17 per cent at the end of the year, while the return on average assets stood at 2.23 per cent.
Revenues for 2012 amounted to Gy$ 5524 million, an increase of 21 per cent over that for 2011, due primarily to increased lending. Net interest income increased by 33 per cent while non-interest income increased by 19 per cent due to the increases in commissions and exchanging gains, he revealed.

On the flip side, the bank incurred an expenditure of Gy$ 2.972 billion, an increase of Gy$ 385 million.
GBTI’s overwhelming success was driven by the growth in its loan portfolio, the CEO said. He explained that loans stood at Gy$ 35 billion at the end of 2013, reflecting a net growth of Gy$ 11.3 billion or 46.8 per cent.
Currently, the bank owns a whopping 22 per cent of the loan portfolio in the banking industry.
The bank’s credit to deposit ratio increased to 45 per cent in 2012 compared to 40 per cent at the end of 2011, Tracey reported.
The growth in the loan portfolio was attributed to the improved and diverse loan system. In an effort to increase its portfolio, GBTI tailored its lending policies based on development in the various economic sectors in Guyana.
Customer service, expansion
Turning his attention to customer service and branch expansion, Tracey said despite minor hiccups during the implementation stage of the software upgrade, GBTI undoubtedly maintains an excellent record of customer service.
As part of its expansion project, GBTI continues to increase the number of Automated Teller Machines (ATMs) and Point of Sale Terminals in critical areas. The relocation of the GBTI branch in Lethem in 2012 was done with the aim of providing a full suite of banking services in a more spacious and convenient environment.
In 2012, the bank upheld its record on supporting community projects and programmes by sponsoring the Children’s Dramatic Poetry Competition which was part of the country’s 42nd Mashramani activities.
A show of the work of Guyana Women Artists Association was also facilitated by the bank in February. Groups of Early Savers were also treated to sessions of fun, games, and learning at the National Museum in the months of May and July as part of GBTI’s first story-telling and literature venture.
These are just a few of the many initiatives undertaken by the bank in support of civil society.
Looking ahead
As 2013 progresses, the CEO expressed concern over the high levels of uncertainty in some sectors.
“Two of the leading production sectors and significant foreign exchange earners -rice and gold mining are facing uncertain futures,” Tracey pointed out in his report.
According to him, the heavy dependency on the Venezuela market for the sale of rice is also worrying, noting that the loss of this market can cripple the rice sector.
“The sugar industry continues to limp along, but, with favourable weather and improved technical and mechanical competence, it should do no worse than done in 2012.”
Amid the signs of uncertainty, Tracey said bankers were optimistic that the banking industry will continue to flourish. He said that with competition for less lending opportunities, it is anticipated that the trend of the reduction of interest rates will continue this year.
Additionally, the bank will be commissioning another branch this year, while assessing the possibility of greater expansion in the future.