The Guyana Bank for Trade and Industry’s (GBTI) 2018 results was impacted by the default of the Government of Barbados which stopped payments on its external debt.
This was revealed by the Chairman of GBTI, Robin Stoby in his presentation which appears in the bank’s 2018 annual report.
Stoby said ‘While both regulatory and internal guidelines limit our exposure to any one borrower the impact of the Barbados government default did have a negative impact on our bottom line”. The size of GBTI’s exposure was not stated.
Stoby added: “Your Bank is now part of an international group of investors who are negotiating with the Government of Barbados through the IMF and other international advisers to restructure the debt owed to us”.
GBTI registered profit after tax of $1.4b for 2018, down 4.93% from $1.5b in 2017. Interest income fell significantly by 8.62% from $5.044b in 2017 to $4.609b last year.
Stoby said that total assets grew by $9B or 9.1% to $107.5B – the largest in the history of the bank. Total deposits also grew by $7.5B or 8.4%.
He also cited non-performing assets and the current political instability.
“The bank’s performance has been clearly affected by non-performing assets. Efforts continue to engage our borrowers to improve their debt serving with the Bank, in addition we have had to resort to legal recourse in some cases to improve the situation. The current political instability is also negatively influencing the level of economic activity being generated. This has manifested itself in the reduced level of good lending opportunities available, and the more ready recourse that some debtors have to drift into a non-performing status”, he said.
Stoby also noted that the matter brought against bank directors by the Special Organised Crime Unit had been dismissed.
“The Bank wishes to emphasize that significant resources were diverted as part of the defense of this matter that had been ongoing for eighteen months, but also wishes to thank our legal team for their outstanding work in demonstrating the innocent stand of the Bank and its Directors, who nevertheless continue to be mystified at the reason for the prosecution in the first place. We would also like to take the opportunity to reiterate our deep commitment to the rule of law and the integrity of the banking system”, Stoby said.
A total dividend of $14 per share has been recommended for 2018. This was the same figure for 2017. The dividend figure for 2016 was $17 per share.
GBTI is to hold its Annual General Meeting on June 28 at its head office, High and Young streets, Kingston at 6 pm.
