…keeping eye on COVID-19, unsettled elections for second half of year

CITIZENS Bank Guyana Inc. has recorded an after-tax profit for the six months which ended March 31, 2020 of $452.1 million, compared to $357.5 million for the corresponding period last year, representing an increase of $94.7 million or 26.5%.

In a report, Chairman of the bank, Clifford Reis, said the interest Income for the six-month period was $1.6 billion, while Interest Expense was $187.8 million, resulting in Net Interest Income of $1.4 billion compared to $1.2 billion for the corresponding period last year. Other Income was $299.0 million, resulting in a surplus before Non-interest Expenses of $1.7 billion; this represents an increase of $238.1 million or 16.2% over the corresponding period last year.

According to Reis, the Bank’s Operating Expenses were $827.2 million, reflecting an increase of 11.3% over the corresponding period last year. Inflationary increases in the cost of goods and services, adjustments to the emoluments of employees and our payment to the Deposit Insurance Fund were the major contributors to the increase in our operating expenses. Net impairment on financial assets was $121.1 million compared to $130.8 million for the corresponding period last year.

At March 31, 2020, the net loans and advances balance was S31.3 billion, compared to $26.4 billion at March 31, 2019. Net investments were $10.3 billion, compared to $3.6 billion at March 31, 2019. Total deposits balance was $48.4 billion, compared to $40.2 billion at March 31, 2019.

“The Board of Directors believe that we should be cautious and prudent and has approved an Interim Dividend of $0.90 per share, the same as for the corresponding period in 2019,” Reis said.

He said while the COVID-19 pandemic, and the still unsettled election 2020 results, present several immediate risks, Citizens Bank Guyana Inc has a strong balance sheet. “However, the ultimate impact on the second six months of our financial year is unknown at this time, as it will depend on the resolution to the election 2020 impasse, and on the duration of current precautionary measures, as well as the substance of any stimulus package and the pace of the macroeconomic recovery,” Reis said.

“As we navigate this unchartered crisis, Citizens Bank Guyana Inc is cautiously optimistic that our performance will result in increased shareholder value. I take this opportunity to thank our customers for their support, the management and staff for their dedication and hard work, our shareholders and fellow Directors for their cooperation and assistance.”