THE Myanmar Livestock and Fisheries Development Bank announced profits totalling K2.323 billion in the 2007-08 fiscal year during the bank’s annual general meeting at Yuzana Hotel on June 23.

The bank’s 2007-08 profits are a significant increase over the K1.435 billion earned in 2006-07 and K1.022 billion in 2005-06.

“Although we give loans to all businesses, the bank’s primary aim is to assist the development of the livestock and fisheries sectors. And the majority of our loans go to these areas,” said Brigadier General Maung Maung Thein, the Minister for Livestock and Fisheries, at the meeting.

“The bank increased loans to fish farms to K500,000 an acre from the previous amount of K100,000. And we’re planning to give loans to storm-affected fisheries businesses in Ayeyarwady and Yangon Divisions,” the minister said.

He added that while there would be “great risk” attached to such loans, it was the bank’s duty to aid the sector in a time of crisis. He also increased the maximum level of funding for this task to K4 billion from the K3 billion originally allocated.

He said the bank aims to allocate 70 percent of its loans to the livestock and fisheries sectors.

In the 2007-08 year about K52.146 billion was loaned to these sectors. This was about 66pc of the K78.845 billion given out in loans throughout the year, the bank’s report shows.

During the previous year, the bank loaned about K31.563 billion to these sectors. This was about 68pc of the year’s total loans, which totalled K46.382 billion.

The rest was loaned to other sectors including the trading, transport, industry, transport and construction industries, it added.

A strong contributor to this year’s profits was interest from loan repayments that totalled more than K9 billion. The bank also received about K834 million from remittances among its various branches.

The report stated that the bank’s total income during the year was about K10.775 billion.

Shareholders at the meeting were also informed that they will receive a K105,000 dividend – about 21pc – for each share they own.

The bank, which is under the Ministry of Commerce’s supervision, was set up in February 1996 to feed the financial needs of the livestock and fisheries sectors. It was established with an initial investment of K10 billion and offered 20,000 shares. Each person or organisation is allowed to own up to 1000 shares and when the bank was floated each share was worth K500,000.

The report stated that these shares are now worth K900,000 each. By March 2008, 11,083 shares had been purchased.

The bank has 19 branches country-wide, including a headquarters in Yangon, and is ready to open another six branches, including one in Nay Pyi Taw.