ONCE the requisite building and environmental permits are given, Citizens Bank Guyana Incorporated will be looking to begin construction of a spanking new edifice to house its Bartica, Region Seven (Cuyuni-Mazaruni) operations.

According to a project proposal prepared by the company’s Managing Director, Eton Chester, construction of the building is estimated to cost approximately $800 million.
“We are now trying to get all the permissions and approvals to build it,” the bank’s Chairman, Clifford Reis, told the Sunday Chronicle on Saturday.

He explained that the new building, proposed to be erected at Parcel 1423, Bartica, will serve as a replacement for the bank’s existing Bartica branch located a stone’s throw away at Lot 16 First Avenue. The proposed site is currently unused, according to the proposal.

“The building that we have there right now is too small. We needed to expand,” Reis said.

The proposal, already submitted to the Environmental Protection Agency (EPA), states that the construction phase of the project will create jobs for approximately 30 persons, while the number of employees providing the customary banking services at the site, post-construction, will be 12, in addition to security personnel.

Within the past few years, Citizens Bank Guyana has initiated notable expansion works, including the establishment of its state-of-the-art headquarters located at Camp Street and South Road, Georgetown.

Moreover, the company has demonstrated its resilience, even amid a global pandemic. As a matter of fact, the bank has already recorded an increase in profits for the first half of 2021.

According to the bank’s interim financial report, a profit of $478.4 million was recorded at the end of March 31, 2021; this represents an increase of $26.3 million or six per cent when compared to the corresponding period last year.

Outside of profits, Citizens Bank also reported that it recorded a net interest income of $1.4 billion after the removal of its net interest expense of $174.5 million. The company’s “other income” was $327.7 million, resulting in a surplus before non-interest expenses of $1.7 billion, the same for the corresponding period last.

Added to that, the bank’s operating expenses were recorded at $818.7 million, compared to $827.2 million for the corresponding period last year, while net impairment on financial assets was $70.5 million compared to $121.1 million for the corresponding period last year.

At the end of March, 2021, the net loans and advances balance at the bank was $32.3 billion, compared to $31.3 billion at the end of March, 2020. Net investments were $8 billion, compared to $10.3 billion during the corresponding period last year.

Further, the total deposits at the bank were $63.3 billion, compared to $48.4 billion at the end of March, 2020. Considering the bank’s performance, its Board of Directors has approved an interim dividend of $0.90 per share.

“The economic and social uncertainty due to the ongoing COVID-19 pandemic continues to pose many challenges for Citizens Bank Guyana Inc., which may impact the second six months of our financial year,” Reis said in the company’s mid-year report.

He continued, “We, however, remain optimistic that our strategies will result in a consistent performance and increased shareholder value.”

It was reported earlier this year that Citizens Bank recorded a profit after-tax of $982.1 million at the end of 2020, compared to $955.2 million in profit at the end of 2019.
Based on available information, Citizens Bank had assets worth US$241.8 million at the end of September, 2018.

The company has 151 employees and serves a customer base of more than 52,700. They provide retail and commercial banking services through its six branches.
The bank commenced its Guyana operation in 1994, as a wholly-owned subsidiary of Citizens Bank Jamaica Limited.

By 1996, the institution introduced “local shareholding,” which saw Citizens Bank Jamaica Limited reducing its ownership of Citizens Bank Guyana Incorporated to some 70 per cent. Eventually, by 1998, the Bank was completely locally owned.

According to the institution, Guyanese shareholders acquired the remaining 70 per cent shares. As it is, Banks DIH Limited, owns approximately 51 per cent of the share capital of the Bank.

Other major shareholders are Continental Agencies Limited 16.7 per cent and the Hand-in-Hand Insurance Group with 16.5 per cent. The remaining 13.01 per cent shares are owned by 69 shareholders including five of the company’s employees.