Home News GBTI taxed profit grows to $632M in half-year report
The Guyana Bank for Trade and Industry (GBTI) and its subsidiary has recorded yet another growth in its profits for the first half of the 2021 financial year; and according to GBTI Chairman Senior Counsel Robin Stoby, the bank is optimistic about its performance for the rest of the year.
According to the Chairman’s Report and financial statements published in Guyana Times, GBTI’s Net Profit after Tax for the six months ending June 30, 2021 was $632 million. This represents an increase of 18 per cent over the corresponding period in 2020.
Stoby also reported that the financial institution’s total assets similarly grew by 15 per cent to $139 billion. Additionally, deposits recorded at the end of this period stood at $119 billion.
The GBTI Board, which approved these financial statements on July 21, further declare an interim dividend of $3.5 per share.
“The bank’s improved performance is influenced by an improving loan portfolio as well as more favourable market conditions. We anticipate a similar trend for the rest of the year as the local economy continues to grow,” the Chairman said in his report.
It was reported that the local economy was projected to grow by 20.9 per cent, with the non-oil economy growing by 6.1 per cent – a significant reversal of the 7.3 per cent contraction in 2020 due to the outbreak of a global pandemic and the effects of Guyana’s tumultuous 2020 elections which ran on for five months.
For this year, the global growth is projected at 6 per cent, moderating to 4.4 per cent in 2022, reflective of additional fiscal support in a few large economies, the anticipated vaccine-powered recovery in the second half of 2021, and continued adaptation of economic activity to subdued mobility.
Nevertheless, GBTI posted a $1.365 billion profit at the end of the 2020 financial year, which saw a 7.9 per cent decline from the previous year.
The bank’s interest income reduced to $4.670 billion last year, compared to $4.778 billion recorded in 2019.
A similar trend in the interest expense for 2020 saw only $670.9 million registered – a significant drop from $763.1 million in 2019. This resulted in the net interest income for last year being $3.999 billion, against $4 billion the previous year.
Moreover, 2020 also witnessed a reduction in other income to $1.437 billion from $1.674 billion, and operating expenses to $3.8 billion from $4 billion.
In 2020, GBTI had also recorded basic earnings per share at $34.15, compared to $37.09 the previous year. Similarly, there was a loan provisioning last year to the tune of $228.6 million against a net recovery of $19.2 million in 2019. (G8)