Latest update October 6th, 2024 12:59 AM
May 30, 2024 News
Kaieteur News – Despite writing-off in excess of half a billion dollars in bad or non-performing loans, compounded by an 18 percent increase in its overhead operating cost, up to $1.2B, Citizens Bank, has still managed to increase its after-tax profits by as much as 22 percent, to in excess of $1B.
This according to the Chairman of the Banks DIH Group, Clifford Reis in his report for the first six months of the bank’s fiscal year 2024, which documents that for the period ending March 31, last, the financial institution recorded an after-tax profit of just about $1.1B. Citizens Bank, is a subsidiary in the Banks DIH Group of Companies. Reis, in his first quarter report to shareholders, said that for the period under review, the company after-tax profits grew by $188.4M, over the $838.3M it earned in the previous period reviewed.
In his report, Reis disclosed too that the bank’s operating expenses stood at $1.2B, reflecting an increase of 18.5 percent for the corresponding period last year. This, he attributed to increases in personnel costs, “as well as the cost of goods and services.”
According to Reis, net impairment on the financial institution’s financial assets, was $420.1M compared to $82.8M for the corresponding period. As it relates to the bad loans, the Chairman recounted that the Bank during the period under review, “wrote- off non-performing loans amounting to $549M.” He did note however, that this was done in compliance with the revised Supervision Guidelines issued in July 2021, and that “these loans written-off are fully collaterised, and full collection is anticipated.”
Meanwhile, as it relates to its services provided, Chairman Reis reported that for the period under review, the net loans and advances’ balance, was at $55.8B, compared to 43.1B in the corresponding period. Total deposits held at the bank, amounted to $110.6M when compared to the $73.3B, it held in deposits at the end of March last year. The Citizen’s Bank interim report for the period, comes on the heels of scathing remarks recently by Head of State, President Irfaan Ali, who during the recent Private Sector Commission’s (PSCs) Annual General Meeting (AGM), lambasted the domestic banking sector, for not keeping apace with the country’s development trajectory.
At the time, President Ali lamented, “…the banking sector has been given one of the most dynamic platforms to support capital formation in this country, yet to date, the banking sector has not responded with the speed, efficiency, reliability and time to exploit the opportunities that are here in Guyana.” According to the President, the role of the bank in the country and its economy is not just to take deposits and to lend in a low-risk environment, “the role of the bank is also to seek opportunity, to understand where the economy is going, to create an ecosystem to support where the economy is going and to build upon what is happening in the country.”
With this in mind, he suggested rhetorically, “if any bank that is here in this country can point to me to an investor banker that is employed by the bank that has created five or six business opportunity and develop five or six business plans to bolster the private sector, I will publicly laud that bank.”
Reminding of his many government initiatives, the President said “some of the banks have been doing an extremely good job at following the initiative; but a very poor job at concluding the arrangements.” Emphasising his point, the President used the occasion to point out that the domestic local private sector and “local leaders are doing a tremendous job in trying to open up opportunities especially in the non-oil-sector but the speed at which the banks have been operating and processing does not match the type of dynamism that is in the economy.”
As such, the President was adamant, it is time for us all to review our mode of operation and to find that as we confront these challenges in the new year.”
With this in mind he suggested, “realigning our outlook in the banking sector and our management in the banking sector to match what is required in the economy.”
According to the President, “this is no way being critical of anything, this is just being very frank and very open with you.”
October 1st turn off your lights to bring about a change!
Oct 06, 2024
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