Its after tax profit was up by 18.2% over the 2007 figure of $795m. Income from loans and advances was up by 7.9% from $1.39b to $1.5b. Total interest income rose by 11.6% from $2.4B to $2.7B. Interest expense jumped by 16% from $876m to $1.01b. Other income also saw a significant increase, moving by 15.8% to $903m from $780m. The relevant note to the accounts described other income as fees and commissions among which are ATM transaction fees; commitment fees – negotiation, application fees for new loan accounts; cost of drafts and transfers; ledger fees, safe custody and telephone banking. Salaries and other staff costs were up 12.5% from $548m to $617m.
Taxation was down marginally from $180.4m to $179m.
In his Chief Executive Officer’s report, R K Sharma said that total assets of the bank have grown by $6.4B to $49.3b. Earnings per share increased by 18% to $23.52 and the return on average equity moved from 20.01% in 2007 to 21.01% last year.
GBTI’s share of commercial bank assets has moved from 21.1% at December 2007 to 21.7% at September 2008. The bank’s deposit base expanded by $3.5B or 9.7%.
Sharma said that at the end of 2008, the bank’s loan portfolio was at $14.7b, a net growth of 31.6%. “Within this balance was $1.3 billion disbursed under the E.C. rice facility. Loans to deposits ratio stood at 35.9% at the end of 2008 compared with 29.9% in 2007”.
He noted that the average interest rate earned by the bank on 2008 loans was 11.71% as compared to 12.43% in 2007.
Distribution services accounted for 29.6% of the loans while rice took up 9.4%. In total, agriculture took 20.8% of the loans and manufacturing 17.1%.
Sharma pointed out that in 2007 the bank began disbursal of funds under the 6.5m Euros ($1.8b) European Community rice competitiveness facility which the bank had won a tender for. The facility was opened for 18 months and closed in September last year. Repayments are to be completed within a maximum of three years after closure.
Noting that commercial banks in Guyana are subject to the risk-based capital adequacy guidelines issued by the Bank of Guyana, Sharma said that GBTI remains well capitalized with the Central Bank’s Tier 1 capital adequacy ratio.
While its statutory deposits with the Bank of Guyana totalled $1.9b in 2007, last year that figure was only $827m. There was no explanation for the difference in amounts. The relevant note simply listed the amounts.
Looking ahead, Sharma said that despite the warnings of tougher times ahead “the bank remains committed to improving its market share and taking advantage of opportunities to enter new markets, while continuing with our strategy of financial prudence and meeting the high expectations of our customers and all other stakeholders”.
He also noted that the bank’s $2.6B head office building is expected to be completed by the end of this year.
In November 2008, the bank opened a new branch at Diamond/Grove using temporary premises pending the construction of a full service building on land acquired opposite the Diamond Health Centre.
