Republic Bank (Guyana) recorded profits before taxes of $2.3 billion at the end of the third quarter on June 30, 2010, positioning itself to exceed the 2009 annual earnings by the time it gets to the end of the current financial year on September 30.
The bank reported a pre-tax profit of $2.6 billion for the financial year ended September 30, 2009.
Republic’s third quarter profit compares favourably to $1.9 billion for the similar period in the 2009 financial year.
This positive upward movement over the first nine months of the previous financial year is also reflected in four of the six performance measuring areas for the period. Net interest income was $3.1 billion at the 2010 third quarter, and $2.9 billion for last year; operating income was $4.5 billion this year, and $4.4 billion for 2009; operating expenses for 2010 were pared down to $2 billion, from $2.3 billion at the end of the third quarter last year; and operating profit rose to $2.5 billion from $2 billion for the same period last year.
Negatively, other income dropped from $1.4 billion in the third quarter of 2009 to $1.3 billion this year, and loan impairment (delinquent) expenses rose to $208 million for 2010 over the $82 million of last year.
Though other income was lower for 2010, net interest income exceeded that of the comparative period last year sufficiently to result in a higher operating income when the two are combined.
Treasury bills for the 2010 period increased in value to $69 billion over the $60.9 billion of last year, and customers’ savings and deposit accounts increased to $83.2 billion, compared to $78.7 billion for the 2009 period.
Republic Bank (Guyana) is a subsidiary of Republic Bank Limited of Trinidad and Tobago, and has operations in that twin-island state along with other countries.
For those combined operations Chairman of the Board of Directors, David Dulal-Whiteway reported an after tax profit of $1.4 billion for the nine months ending June 30, 2010. “This compares favourably with the performance for the prior corresponding period, showing an improvement of $127 million or 9 per cent,” he said, and added. “Total assets increased by $6.0 billion or 7 per cent, while total deposits increased by $4.5 billion or 6 per cent, year-on-year.”
The bank’s total assets stood at $95.1 billion on June 30, 2010. Liabilities – including customers current, savings and deposit accounts; and amounts due to other banks – amounted to $86.9 billion.
The general contingency reserves stand at $329 million, which is part of other reserves that total $493 million – a reduction over the nine months of 4 million. Retained earnings increased over the period from $6.3 billion at October 1, 2009 to $7 billion as of June 30, 2010.
Over the past five years Republic Bank (Guyana) has shown a consistent increase in profit after taxation which has moved from $790.9 million in 2005 through steady growth through the years to $1.8 billion as of September 30, 2009.
