Home' Trinidad and Tobago Guardian : July 20th 2014 Contents At least three Trinidad-based
listed companies, Republic
Bank Ltd, Neal and Massy
Holdings Ltd and ANSA
McAL Ltd, applaud the use-
ful and growing contribu-
tions they receive from their Guyanese oper-
That economy is a significant gold producer.
Although the price of gold fell in 2013, Guyana s
production increased to 458,105 ounces from
438,645 ounces in 2012.
The production of diamonds, bauxite, rice
and sugar are also major contributors to eco-
nomic growth. The Guyanese economy
expanded by 5.2 per cent in calendar 2013. At
December 2013, the US dollar bought 205.47
Guyanese dollars (G$); thus, TT$1.00 buys
The Foreign Account Tax Compliance Act
(FATCA) becomes effective in Guyana in July
2014. This fact alone should spur a greater
business interest in that country. Against this
background, the performance of The Guyana
Bank for Trade and Industry (GBTI), which
significantly reflects the buoyancy of the
Guyanese economy, assumes greater relevance.
GBTI is a subsidiary of Secure International
Finance Company Inc, which owns 60 per
cent of the bank s shares. In turn, Secure is
a wholly-owned subsidiary of Edward B Behar-
ry and Company Ltd. The bank operates from
ten branches at strategic locations across the
Let us see what the GBTI s results were for
its 2013 fiscal period.
Increase in asset values
Total assets rose by 8.9 per cent to G$95.4
billion from G$87.6 billion as at December
2012. The two growth poles were investments
and loans and advances.
The value of investments closed 2013 at
G$26.1 billion; this was almost 27.0 per cent
greater than the G$24.7 billion as at year-end
2012. The most notable increase was recorded
in Government of Guyana Treasury Bills, which
rose by 47.7 per cent from G$9.55 billion as
at December 2012 to last December s G$14.1
billion. There was also a 16 per cent expansion
in the value of foreign government securities;
this figure increased to G$7.13 billion from the
2012 level of G$6.14 billion.
Balances represented by loans and advances
increased by 21.2 per cent to G$42.8 billion
from the 2012 base of G$35.3 billion. Conse-
quently, its share of the market rose to 24 per
cent from 21 per cent in 2012.
Interestingly, only G$2.3 billion (2012: G$2.12
billion) represented loans to the mining and
The bulk of its loan exposure comprised
advances to the services and distribution sector.
In 2013, this value, before impairment
allowances, was G$21.9 billion; this represented
an increase of 18.3 per cent over the 2012 bal-
ance of G$18.5 billion.
Loan balances to households increased from
G$7.3 billion in 2012 to G$9.9 billion last year,
denoting a rise of 35.3 per cent. Advances to
the agriculture sector improved by almost 27.0
per cent to G$7.54 billion from the 2012 level
of G$5.94 billion.
Only the manufacturing sector exhibited a
decline in pre-impairment year-end loan bal-
ances; this figure moved from G$3.83 billion
as at the end of 2012 to G$3.73 billion last
Other assets contracted from G$1.61 billion
as at the 2012 year-end to G$1.02 billion last
December. The bulk of this decline was con-
centrated under two headings, interest and
commissions accrued and sundry debtors. The
former fell to G$380 million from G$588 million
in the 2012 period. In the case of the latter,
its year-end value shrunk to G$54 million from
G$505 million in the earlier period.
For a bank, its most important liabilities are
the deposits it holds in trust for its customers.
In GBTI s case, this category represented 98
per cent (G$83.5 billion) of its total liabilities
of G$85.2 billion.
Starting from a 2012 deposit base of G$77.3
billion, the bank achieved growth of 8.1 per
cent to end 2013 at G$83.5 billion. This change
pushed its share of total bank deposits up
slightly to 25 per cent.
In 2013, more than half of its deposits
(G$42.6 billion) was sourced from the personal
sector. Although this figure was almost
unchanged from the 2012 balance, in that peri-
od, deposits of G$42.5 billion represented 55
per cent of total deposits of G$77.3 billion.
Deposit sourced from state entities grew by
12.2 per cent to G$20.6 billion from the 2012
base of G$18.35 billion. Starting from a lower
base, deposits originating from the commercial
sector expanded by almost 31.0 per cent to
end 2013 at G$14.9 billion from the 2012 level
of G$11.35 billion.
Other liabilities rose to G$1.67 billion from
G$1.28 billion as at December 2012. Here, the
most significant change was the increase in
sums due to other banks, which escalated from
G$255k as at December 2012 to G$800 million
Shareholders equity improved to G$10.2
billion from the 2012 level of G$9.0 billion.
Profit for the year boosted the retained earnings
component by a total of G$2.18 billion while
dividends paid of G$640 million lowered the
The book value of each share improved from
G$225.35 as at December 2012 to G$254.34
Income and profit
Interest income rose by 12.1 per cent to
G$5.1 billion from the previous year s G$4.5
billion. The major component, interest on
loans and advances, grew by 14.4 per cent to
G$4.02 billion from G$3.52 billion a year earlier;
this is consistent with more robust loans dis-
Interest on investment securities increased
from G$862 million in 2012 to G$925.3 million
last year, reflecting a 7.3 per cent improvement.
Other interest income contracted to G$98.6
million from G$124.1 million in the 2012 peri-
od.Interest expense also rose by 12.1 per cent;
this item increased to G$960 million from
G$856.5 million in 2012. Here, the biggest
change was observed in the interest paid on
term deposits, which surged by 38.7 per cent
to G$324.5 million from G$234 million a year
The totals of other income expanded by
39.2 per cent to G$1.42 billion from the 2012
level of G$1.02 billion. Commission income
advanced by 36.7 per cent to G$610 million
from G$446 million in 2012. Meanwhile,
exchange trading and revaluation gains rose
by 41.6 per cent to G$806.5 million from
G$569.6 million in 2012.
These movements saw net interest and other
income reach G$5.51 billion from G$4.67 billion
in 2012, resulting in an almost 18 per cent rise.
Total operating expenses advanced from
G$2.08 billion in 2012 to G$2.42 billion last
year, reflecting an increase of 16.3 per cent.
The largest component, staff costs of G$1.18
billion, now accounted for 48.7 per cent of
the total; in 2012, staff cost of G$991.3 million
comprised 47.7 per cent of that year s total.
Meanwhile, other operating expenses
increased by 19.1 per cent to G$423.3 million
from the 2012 base of G$355.3 million.
After allowing for slightly lower loan pro-
visioning and the share of profit from its asso-
ciate company, Guyana Americas Merchant
Bank, pre-tax profit registered at G$3.06 billion;
this was 20.4 per cent greater than the G$2.54
billion earned in 2012.
After providing for taxes, the net profit for
2013 came in at G$2.18 billion, reflecting a
20.1 per cent improvement over the 2012 result
of G$1.81 billion.
With 40 million shares outstanding, EPS
improved from G$45.35 in 2012 to G$54.47
In 2012, the treasury and corporate segment
included a loss of G$8.5 million, which was
entirely due to the loss incurred on its 40 per
cent owned associated company, Guyana
Americas Merchant Bank. In contrast, the
2013 result for this segment included a profit
of G$785k from the same associate.
In 2013, the retail and commercial banking
segment registered G$480.5 million higher
interest income and generated G$445.2 million
greater pre-tax profits.
Past performance and share price
Over the past five years, GBTI s assets have
grown from G$53.9 billion in 2009 to G$95.4
billion last year, or by 77 per cent. Meanwhile,
its after-tax profits have climbed by 119.8 per
cent, moving from G$991.4 million in 2009
to G$2.18 billion in 2013. In none of the inter-
vening years did either its assets or profits
Based on an annual dividend of G$17.00
and a recent share price of G$600.00, GBTI s
shares give investors a comfortable yield of
2.83 per cent.
The bank expects to incur additional expens-
es as it strives to comply with FATCA and
other regulations. It anticipates somewhat
slower growth in the national economy and,
consequently, less robust increases in the bank s
JULY 20 • 2014 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
STOCKS | SBG13
Guyana Bank for Trade & Industry
A strong performance
helps bank with FATCA rules
Links Archive July 19th 2014 July 21st 2014 Navigation Previous Page Next Page