GBTI’s half-year profit at Gy$1.1B

The Guyana Bank for Trade and Industry (GBTI) has recorded a whopping Gy$1.103 billion profit after tax for the first six months for the financial year ending on June 30.

According to the bank’s Chairman Robin Stoby, the profits reflected that the bank was able to maintain its profitability. The unaudited report on the bank’s financial performance was approved by the Board of Directors on July 18.

Stoby stated that along with the Gy$1.1 billion profit, the board has also declared an Interim Dividend of Gy$6.00 per share to shareholders. He noted the bank has taken a more conservative approach to lending, which saw its loan portfolio slowing down.

“We have continued with our plans for opening branches in unbanked or under-banked areas of our country, albeit in a more cost-effective way. Our Bartica Branch should be opened in September 2014 and we have completed the construction of our building in Port Kaituma and now offer our services from there,” Stoby pointed out.

Performance

The Chairman explained that the bank’s excellent performance is due to the gradual recovery of the global economy over the passing six months, and with it also came the strengthening of the US dollar. Nevertheless, he continued that because of the low price of gold on the world market, the bank is suffering due to the loss of gold hedge.

“This current low price of gold came at a time when our economy was being boosted by record production of gold, so that starting in the second half of 2013 and into the first half of 2014, gold miners found their profits squeezed to the point where many miners exited the sector, either permanently or temporarily,” he said.

Stoby added too that the country’s economy continues to struggle in the face of a sugar industry that is underperforming; a rice industry that is heavily dependent on the Venezuelan market; and the high cost of energy that makes the manufacturing sector unable to compete with other Caribbean industries.

Deadlock

He went on to emphasise the deadlock in the National Assembly regarding the passage of the Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Bill, mostly caused as a result of a minority Government.

The Chairman pointed out that with both Government and the Opposition holding strongly to their respective positions, it seems unlikely there will be any compromise between them and this is worrisome to the business community.

“For the banking sector, the failure to resolve this issue is causing increased delays and difficulties in carrying out international payments on behalf of customers,” he disclosed.

As it relates to the loan portfolio for last year, this sector continues to grow, recording a 20 per cent increase of Gy$7.5 billion from Gy$35.3 billion in 2012. This figure had surpassed that of the banking sector; hence, its share of total loans in the sector was recorded at 24 per cent. GBTI’s credit to deposit ratio rose to 54 per cent in 2013.

Growth was also recorded in household loans, which accounted for 22 per cent of the total loans. According to the CEO, the bank will continue to lend within its sectoral limits as the housing drive continues to expand.