Citizens Bank Managing Director Alan Parris has said in his 2006 annual report that despite the challenges which the bank has had to confront “both within the banking industry and generally in the country” 2006 had marked the tenth successive year that the bank saw growth in its assets.

Last year the bank recorded growth of $1.9bn in its assets – up from $15.8 bn in 2005 to $17.7 bn in 2006. Earnings per share was $5.84 last year compared with $5.81 in 2005. Last year Citizens Bank’s interest from loans reached $1.1bn, an increase of 13.65 per cent over 2005.

Yield on loans and advances last year was 10.68 per cent compared with 10.65 per cent in 2005, a development which Parris said “reflected the bank’s established policy of offering competitive pricing on its products.” However, the bank’s general manager reported a decrease in its yield on investments from 7.37 per cent in 2005 to 5.84 per cent last year, a decrease which, Parris said, reflected “the general trend of lower rates on new investments and the loss of income from the Government of Guyana bonds which matured on May 17, 2006.”

Citizens Bank’s net interest income for last year reached $640m representing a 4.46 per cent increase over the previous year while other income was $243.2m which, according to the Managing Director’s report, resulted in a surplus before non-interest expenses of $883.7m, a 3.21 per cent increase on the previous year. In noting that the bank’s non-interest expenses last year reached $501.6m Parris said that the institution remained committed to the prudent management of its operating expenses and that it was continually seeking opportunities to enhance its efficiency.

In his report Parris said that this year the bank will be seeking “to extend its internet presence” to enable customers to conduct most of their routine transactions via the internet.