Banks DIH Limited and its subsidiary Citizens Bank Guyana Inc have both recorded improved performances for the first half of the 2010 financial year, ended March 31, and notwithstanding the many challenges anticipated, the entities are optimistic about the future. Speaking in a report on the interim financial statements for the Group, Chairman of Banks DIH Limited, Clifford Reis, said that the Group’s third party revenue for the six months ended March 31, 2010, was $8.93 billion, compared to $7.89 billion for the corresponding period in 2009, an increase of $1.039 billion.

According to the financial statement for the Group, the un-audited profit before tax for the six month period was $1.388 billion as against $1.033 billion achieved in 2009. The un-audited net profit after tax for the Group, after excluding non-controlling interests for the six months ended March 31, 2010, was $708.0 million as against $541.1 million in 2009.

The un-audited profit after taxation for the company was $594.1 million compared to $427.5 million in 2009, an increase of $166 million or 39 percent.

The Board of Directors of Banks DIH Limited has approved an Interim Dividend of $0.14 per share unit.

According to the Chairman, the improved results that the company achieved came mainly from increased dollar sales, physical growth in case sales, efficiencies derived from restructuring of the company’s operations, and the agreement with the Guyana Revenue Authority (GRA) on the company’s approach to Excise Tax determination.

Reis said that the company will continue to pursue its programme to optimise its manufacturing processes to improve quality, and its distribution of beverage and food products.

The Chairman said that the remaining six months will be challenging for the company with the continuing effects of the global economic crisis and the frequency in price increases for fuel. “Nevertheless, the Directors are optimistic that the performance for the financial year 2010 will show an acceptable level of growth and will continue to improve shareholders’ value,” Reis said.

The Group’s subsidiary Citizens Bank Guyana Inc recorded an improved performance during the six month period ended March 31, 2010. The Bank achieved an un-audited profit after taxation of $261 million compared to $255 million in 2009.
Profit before taxation for the Bank for the six month period was $425.4 million, representing an increase of $53.8 million or 14.5 percent over the corresponding period in 2009.

The Bank said that interest income for the six month period was $703.7 million, while interest expense was $232.5 million, resulting in net interest income of $471.2 million compared to $440.4 million for the corresponding period in 2009.

Other income was $221.4 million, resulting in a surplus before non-interest expense of $692.5 million, representing a 4.7 percent increase on the corresponding period last year.
The bank’s operating expenses for the period were $275.9 million compared to $270.6 million for the same period last year.

The bank’s earnings per share for the six month period were $4.39 in comparison to $4.29 for the same period in 2009. The Board of Directors has approved an Interim Dividend of $0.50 per share, same as that of the corresponding period last year

At March 31, 2010, the net loans and advances balance was $10.9 billion, compared to $9.9 billion at March 31, 2010. Provision for loan losses totalled $158.7 million, or 52.2 percent of the bank’s non–performing portfolio as at March 31, 2010.
“At March 31, 2010, net investments were $6.7 billion, compared to $6.1 billion at March 31, 2009, and total deposits balance was $21 billion, compared to $19.2 billion at March 31, 2009,” Citizens Bank said.

The bank said that it is optimistic that the strategies put in place to develop and expand business of the organisation will result in improved results during the remaining six months of the financial year.