CITIZENS Bank has recorded a profit after tax of $357.7 million for the period ending March 31, 2019 compared to $277.7 million for the corresponding period last year, representing an increase of $79.8 million.
According to the bank’s interim financial reports, interest income for the six-month period was $1.4 billion while interest expense was $190.9 million, resulting in net interest income of $1.2 billion compared to $1.1 billion for the corresponding period last year.
Other income was $280.9 million, resulting in a surplus before non-interest expenses of $1.5 billion which represents an increase of $141 million or 11 per cent over the corresponding period last year.
According to the report, the bank’s operating expenses were $743.2 million, reflecting an increase of 3.0 per cent compared to the corresponding period last year.
“Increases in the cost of goods and services were the major contributors to the increase in the bank’s operating expenses,” said Citizens Bank.
At March 31, 2019, the net loans and advances balance was $26.4 billion, compared to $26.1 billion in March last year. Net investments were $3.6 billion, compared to $6.3 billion last year.
In light of the increased profits, the bank’s board of directors has approved an interim dividend of $0.90 per share compared to $0.70 per share for the corresponding period in 2018.
The remaining six months of the bank’s financial year will require them to overcome many challenges.
“The bank is, however, optimistic that we will record an improved performance that will result in increased shareholder value,” said Citizens Bank.
It was reported that the bank recorded $602.3 million in after-tax profit for 2018. The bank’s profit before taxation was $1.009B, while its net interest income stood at $2.24B.
Its earnings per share were recorded at $10.12 while the total assets base was $50.5B. Meanwhile, loan assets in 2018 decreased from $28.2B to $25.5B in 2018 and customer deposits were at $40.9B compared to $40.6B in 2017.