GBTI rakes in $2B after tax
Chairman of the GBTI Board of Directors, Robin Stoby
Chairman of the GBTI Board of Directors, Robin Stoby

…to broaden range of technological solutions

DESPITE encountering a few challenges, the Guyana Bank for Trade and Industry (GBTI) recorded $2.04B in profits after tax for the year ending 2016, an increase of 1.5% over 2015.
The bank held its 29th Annual General Meeting (AGM) on Monday at its head office in Kingston, Georgetown and this disclosure was made by Chairman of the GBTI Board of Directors, Robin Stoby in his report.

As a result of the $2.04B garnered in after-tax profits, the bank was able to maintain their level of dividend-payout, bringing the total dividends for the year to $17 per share. Additionally, Stoby related that total assets of the bank have amounted to $98.4B (2.3% increase from 2015) and the capital base has grown to $14.6B, within which the bank has $13B available to sustain future expansion activities.
There was also a 1.1% increase in the net operating income of the bank (all revenue minus all necessary operating expenses) from the results of the 2015 report; this increase totalled $6.2B. While the bank managed to record its colossal $2.04B in after-tax profits, the bank did encounter a few challenges throughout the year.

In the report of the Chief Executive Officer John Tracey, he noted that 2016 had been the most challenging year for the bank for the past five years. Tracey said that the national downturn affected the bank. This downturn, he said, resulted from lower commodity prices, inclement weather conditions and high costs of production coupled with the sluggish state of the economy and pressure on the exchange rate at year-end.
Guyana’s real GDP growth, which was projected to be around 4% in the national budget, was actually 2.6%. Both Stoby and Tracey reflected that the bank, as the rest of Guyana, remains speculative but optimistic about the discovery of oil off our shores and what this means for our economy.

The slowdown affected the loan portfolio growth of the bank, as total loans and advances were recorded as $45.5B, down 5.2% from 2015. The bank’s deposit portfolio and operating expenses were consistent with previous years, however. Stoby noted that amendments to financial and business legislature and new regulations also affected the bank by pushing up operational and compliance costs. This compliance has not only become more costly, but has required several changes in the banking system and operations.

Two thousand and sixteen (2016) was nevertheless the final year for the bank’s five-year strategic plan and Tracey related that the bank was able to achieve most of its objectives and of course, highlighted the bank’s ability to garner its $2.04B in after-tax profits. As the bank will be celebrating 30 years of existence this November, the chairman of the bank underscored that the bank aims to broaden their range of technological solutions to further enhance costumers’ banking experience in terms of service, functionality, experience and customer fulfilment. This will be affirmed through the bank’s 2017-2021 Strategic Plan, in which emphasis will also be placed on security measures, since the bank is wary of its vulnerability to cyber threats, hacking, data leakage and other security breaches.

SHARE THIS ARTICLE :
Facebook
Twitter
WhatsApp

Leave a Comment

Your email address will not be published. Required fields are marked *

All our printed editions are available online
emblem3
Subscribe to the Guyana Chronicle.
Sign up to receive news and updates.
We respect your privacy.