In spite of the challenging economic year internationally, Banks DIH, for the first time in the company’s history, recorded in excess of $1billion in profit after taxes for the financial year of 2008, Banks DIH Chairman Clifford Reis announced yesterday as the company held its 53rd Annual General Meeting.
According to Reis, the profit after tax for the Group attributable to shareholders was $1.042 billion reflecting a 16.0% increase or $143.9 million on the results for 2007. The profit before tax for the Group was $1.968 billion compared to $ 1.518 billion for the previous year, which represents an increase of $ 450 million or 29.7%.
Meantime, taxes paid to the government (including VAT) exceeded $5 billion as against $4.7 billion that was paid in 2007.
However, in spite of this 29.7 % increase in profits before tax, Reis last evening stated that the unusually high
tax levied on Banks beer and its related products, when compared with other Caribbean countries, encouraged illegal imports, which caused unfair competition. Reis urged that legislation be enforced to ensure that the name and address of the supplier is printed on the labels of these goods, hence cutting down on the sale of smuggled products in the country.
In reflecting on the major accomplishments of the past year, Reis singled out the Memorandum of Understanding (MOU) that was signed with Banks Holdings Limited, which allowed for Banks beer and Banks shandy to be successfully launched in the USA. Plans are on the cards to have these products introduced to the Canadian market later this year.
The Chairman’s report also pointed to an increased shareholding in Barbados at the Banks Holdings Limited where another 698,208 shares were acquired in the Rights Issue offer.
Citizens Bank, which is a 51% owned subsidiary of Banks, recorded a 66.2% increase over 2007, raking in over $400 million.
Reis said that this year the public can look forward to even more developments in the company. Last evening, he announced that the Arawak Steak House (which is currently located in the Stabroek area) will be relocated to Sheriff Street.
He said that work is underway to have the Sheriff Street location of Banks DIH converted into a Sports Bar and Grill under the name “OMG”. He explained that this was necessary since the customers who visit the Steak House at its current location were finding it difficult to deal with the huge volume of traffic present in the area.
Further, he said that the meaning of “OMG” has not been decided as yet and that a competition will be held so that the public can submit entries as to what “OMG” will mean. Reis said that within the next three months the new facility should be ready.
Meanwhile, Reis also told the shareholders that Citizens Bank will be seeking to move into its own building shortly. He said it was a strong possibility that a new building will be constructed to house the bank.
