Demerara Bank records 20.6% increase in after-tax profit for 2017

Demerara Bank Limited (DBL) has again ended another financial year on a high note with outstanding performance recorded in all areas of the Bank during its financial year ended September 30, 2017.

The Bank’s profit before taxation is GY$2.4 billion, an increase of 19 per cent over the previous year, while Net Profit rose by 20.6 per cent. DBL, being the only Indigenous Guyanese Bank and the youngest bank among all the commercial banks in Guyana, continues to excel despite the challenges of the banking environment.
According to the bank, the outstanding performances are reflected in the Deposit Base which stands at its highest of GY$57.0 billion, registering a rise of 7.3 per cent when compared to 2016; this compares favourably to the Banking Sector Deposits which declined by 2.49 per cent at the end of August 2017 y/y. Total Loans and Advances increased from GY$24.7 billion to GY$25.5 billion, showing a rise of 3.2 per cent over the previous year. Loans and Advances in the banking sector for the period September 2016-August 2017, recorded a marginal increase of just 0.30 per cent. The investments of the bank have remained constant at $23.2 billion.
Demerara Bank’s listing of its assets at the close of financial year 2017 totals GY$70.0 billion compared with GY$64.0 billion at the end of September 2016. Interest Income on Investments went up from GY$1.56 billion to GY$1.66 billion; an increase of 6.3 per cent over the previous year while Interest Income on Loans and Advances marginally increased from GY$2.15 billion to GY$2.19 billion; a rise of 1.8 per cent over the previous year. Other Income expanded from $422 million to $988 million during the year, showing a rise of 133.8 per cent. Total Interest Income rose to GY$3.9 billion; 3.7 per cent higher than 2016.
As a result of the bank’s solid performance over the past financial year shareholders’ earnings per share has increased by 20.3 per cent to GY$3.55 per share. The net worth of the Bank has increased from GY$9.3 billion to GY$11.0 billion, an increase of 19 per cent over the previous year.
The bank noted that it continues to be an environmentally friendly bank and a catalyst for green and clean energy. After the successful implementation of solar panels to its corporate office which allowed the building to be fully powered by solar energy, the bank ventured to install solar panels to its main branch location and is in the process of installing the solar panels at its Diamond branch. The installation of the solar panels has significantly reduced the electricity cost of the bank.
The solid performance over the last financial year was also significantly due to the continued commitment and dedication of the Chairman, Directors of the Board, management and staff of the bank, the financial institution said on Tuesday.