Prudent cost management, operational efficiency led to $3B profit in 2023 – GBTI

…lending grew by 18%

The Guyana Bank for Trade and Industry (GBTI) Limited has earned $3 billion in net profits for the financial year 2023, representing a 30 per cent increase over the previous year’s profits.
GBTI, in a statement on Thursday, reported that its financial performance for the year ended December 31, 2023 was driven by prudent cost management and a focus on improving operational efficiency. According to GBTI – Guyana’s largest indigenous bank – its continued growth trajectory last year marked increased financial profitability.
Chairman of the GBTI Board of Directors, Robin Stoby, has said the report on the financial performance of the bank and its subsidiary for the 2023 financial year was approved by the Board on February 16, 2024. He said he is pleased to report that the bank has shown resilience and has achieved significant milestones over the year.
Stoby disclosed that, in 2023, the Bank and its subsidiary recorded a total asset base of $201 billion, reflecting an increase of 15 per cent from the previous year. This growth, he noted, was primarily driven by a strong performance in GBTI’s lending portfolio, which also saw an 18 per cent increase in overall loans and overdraft portfolio compared to 2022.

The bank’s deposit base also grew by 17 per cent to reach $168 billion – an indication of a high level of trust and confidence from customers, the Chairman stated. Stoby has said that GBTI remains cautiously optimistic about the future, going forward.
“As the local economy continues to grow at a rapid pace, we believe that our strong financial position, coupled with our focus on innovation and customer service, will enable us to leverage through these opportunities and continue to deliver value to our shareholders,” Stoby has said.
“I would like to take this opportunity to thank our customers, shareholders, and employees for their continued support and dedication. I would also like to express my gratitude to the Board of Directors for their guidance and oversight throughout the year. I am confident that with the collective effort and commitment of all stakeholders, the bank will continue to grow and succeed in the years to come,” the GBTI Chairman has said.
In 2022, the bank recorded a net income after tax of $2.3 billion, and ended with $175 billion in total assets, along with an exponential improvement in its asset quality.
Last July, in its 2023 interim report, GBTI reported earning $1.415 billion in profits for the first six months of the year – an increase of 10 per cent, or $124 million, when compared to the same period in 2022; and at the time, the group’s total assets also grew from $160 billion to $186 billion, a solid increase of 16 per cent.
The bank had said this improved performance has been influenced by an improving loan portfolio as well as by more favourable market conditions.
GBTI’s after-tax profit also increased over the first six months of 2023 to $1,384 million, compared to $1,163 million recorded during the same period in the previous year. At the end of that half year, the bank’s total assets also went up to $185 billion from the $159 billion net in the first half of 2022.
Further, the GBTI Board had declared an interim dividend of $13 per share in its 2023 mid-year report.
GBTI had noted back in 2022 that its improving performance is as a result of the transformative digital drive through upgraded software computer systems overall, and “Go-Banking” that was rolled out in the last quarter of 2022 without negative impact on its increasingly digital-savvy customers.
“The upgrade process is ongoing; staff training is continuous, and clients are sharing expressions of support and greater confidence in the bank and Guyana’s economy. GBTI’s competitive performance in 2022 was fuelled further by an empowered team conversant with, and committed to, achieving its strategic priorities,” the bank had noted in a release. (G8)