While the COVID-19 pandemic and the unsettled decision of the 2020 elections results present several immediate risks, the Board Members of Citizens Bank remains confident, for the time being, that its strong balance sheet will stand the test of time. Be that as it may, the Board noted in the bank’s latest financial statements that the ultimate impact on the second six months of its financial year remains unknown as it will depend on the resolution of the election impasse, the duration of current precautionary measures, the substance of stimulus packages, and the pace of the macroeconomic recovery.
Taking this into consideration, the Bank’s Board said that it is cautiously optimistic that its performance will result in increased shareholder value. The Guyana Standard understands that the Board has since approved an interim dividend of $0.90 per share. This is the same as the dividend paid out for last year.
Turning to the specifics of its balance sheet, Citizens Bank noted that it recorded profit after tax for the six months ended March 31, 2020 of $452.1M compared to $357.5M for the corresponding period last year. This represents an increase of $94.7M or 26.5 percent.
With respect to the bank’s operating expenses, this stood at $827M, an 11.3 percent increase over the same period last year. The commercial entity noted that inflationary increases in the costs of goods and services, adjustments to emoluments of employees and payments to the Deposit Insurance Fund were the major contributors to the increase.
Citizens Bank also disclosed that up to March 31, last, the balance for net loans and advances totaled $31.3B compared to $26.4 for the same period last year.