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Citizens Bank profits after tax pegged at $1.1B
Kaieteur News – Citizens Bank has raked in a total of $1.1 billion in profits for the year 2021, representing an increase of $73.4 million when compared to 2020.
This information is included in the Chairman’s Report of the Bank’s Annual Report for 2021.
Chairman of Citizens Bank Guyana Inc. Clifford Reis
The Chairman, Mr. Clifford Reis, who is also the Chairman of Banks DIH, said “I am pleased to report that Citizens Bank Guyana Inc. has recorded profits after taxation of $1.1 billion representing an improvement of $73.4 million or 7.5 percent when compared to the prior year”.He added that the bank’s performance should be seen in the context of the continuing negative impact of the global pandemic on Guyana’s economy, while explaining that the improved performance was achieved through the growth in, and moderate improvement in the overall quality of its loan portfolio. It also attributed the growth to its prudent management of its controllable expenses.
Citizens Bank’s total assets grew by 29.6 percent, according to the Report. In addition to this, customers’ deposit also expanded by 34.6 percent, receivables/ loans by 6.5 percent and gross revenue by 5.3 percent.
Meanwhile, net income for the year ended September 30, 2021 was $3.6 billion compared to $3.4 billion the previous year, an increase of $0.2 million or 5.9 percent and profit before taxation of $1.8 billion compared to $1.7 billion the previous year, resulting in an increase of $0.1 billion or 5.9 percent again.
The Bank noted that the annualized return on average assets was 1.4 percent, while the return on shareholders’ equity was 10 percent, compared to 1.7 percent and 10 percent respectively for the previous year.
While pointing to the banking sector, the Chairman reported that loans and advances grew by eight percent or $280.9 billion at September 30, 2021. The private sector credit increased by some 8.8 percent to $275.7 billion during last year, the Annual Report outlined.
Mr. Reis added that deposits at the commercial banks also saw an increase of 16 percent to $565 billion by the end of September last year, with private sector deposits growing by 15.2 percent to $459.2 billion; representing 81.3 percent of total banking sector deposits.
The Chairman was keen to note in his report that with global economies expected to expand by at least four percent this year, the Bank looks forward to another successful year. He said “the Guyana economy is projected to grow by 46.5 percent during fiscal 2022 buoyed by the continued expansion of the oil and gas sector and increase in output from the traditional sectors, which sectors are expected to benefit from the government’s expansive infrastructure development program and increased foreign direct investments”.
In 1998, Citizens Bank became fully owned by locals. The financial institution’s website explains that existing Guyanese shareholders acquired the remaining 70 percent of shares in Citizens Bank Guyana Inc, held by Citizens Bank Jamaica Limited. Banks DIH Limited, a company incorporated in Guyana, acquired sufficient additional shares to enable it to own 51% of the share capital of the Bank. Other major shareholders of the Bank are the Continental Agencies Limited 16.7% and the Hand-in-Hand Insurance Group with 16.5%. 69 shareholders including 5 employees who hold the remaining 13.01%. Up to 2018, the Bank headquartered at Camp Street, Georgetown had about six locations in which it provides its retail and commercial banking services.
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