First Citizens posts $1b pre-tax profit

First Citizens' profit before tax is $1.06 billion for the financial year ending September 30, 2019, a 5.2 per cent increase over 2018. After taxes, its net profit is $751.7 million, 11.6 per cent more than the previous year.

The state-owned bank's assets increased by 3.2 per cent to $43.4 billion. Chairman Anthony Smart, in his end of year report, said loans accounted for much of the bank's growth. "This increase was in part driven by growth in customer loans and advances and the investment portfolios of 16.3 per cent and 4.9 per cent respectively, which resulted in an increase in net interest margin of $74.3 million or 4.7 per cent. Customer deposits also increased by 1.4 per cent to $25.8 billion."

On Monday, the board approved a dividend of 49 cents per share which increased the total payout to $1.70 per share, up 6.25 per cent. The final dividend will be paid on January 3 to shareholders on record as of December 19.

"These accomplishments were underscored by Standard and Poor's affirmation of First Citizens Bank's rating of BB/Stable/A-2 in October 2019," said Smart. He also referred to the bank's top ranking for corporate governance by the Arthur Lok Jack Global School of Business for the second consecutive year.

Smart thanked all stakeholders –from management, staff, customers to shareholders– for their contribution to "continuing growth and sustainability" of the First Citizens Group.