Demerara Bank has recorded a huge gross profit of $4.9 billion in spite of the COVID-19 pandemic which translates to a 40 per cent increase when compared to the previous year and increased dividend payments for shareholders.
According to the Chairman’s Review from DDL Chairman, Dr Yesu Persaud, the net profit for the Bank once taxes are accounted for is $2.95 billion for the year ended September 30, 2021.
This net profit is an increase of 31 per cent. In his review, Persaud attributed these successes to the Bank’s resilience through its solid business strategies and prudent management of resources. Shareholders will also be collecting record dividend payments.
“The Board of Directors recommended a final dividend payment of $1.6 per share, while the interim dividend paid was $0.40 per share. This brings total dividend payments to $2.00 per share for the full year; the highest dividend payment in the history of the bank. Payment of dividend is subject to shareholders’ approval at the Annual General Meeting,” he said.
“We are grateful to our customers, the Board of Directors, management, and staff of Demerara Bank Limited [DBL] at all levels and will continue to work for the betterment of all Guyanese,” Persaud added in his review.
When it comes to the Bank’s financial position, the report also shows improvements. For instance, assets increased from $94.6 billion in 2020 to $114.5 billion at the end of September 2021.
Cash went from $571 million in 2020 to $726.4 million. Its deposits with Central Bank went from $7.8 billion in 2020 to $9.4 billion in 2021 (statutory), while other deposits went from $6.4 billion to $10.5 billion. Meanwhile, taxation payable increased from $404.7 million in 2020 to $1 billion this year.
Demerara Bank’s Board of Directors include Chief Executive Officer Pravinchandra Dave, Corporate Secretary Chandra Gajraj, Komal Samaroo, Hemraj Kissoon, Dr Leslie Chin, Harryram Parmesar, Garfield Wiltshire and BS Roy.
DBL Chairman, Dr Yesu Persaud
This latest financial performance is consistent with the pattern recorded in DBL’s previous end-of-year report, in September 2020, when the Bank achieved a $2.263 billion profit after tax, representing an increase of four per cent over the previous year.
That performance was especially significant, since it was achieved during a period that saw the emergence of the COVID-19 pandemic as well as the March 2020 General and Regional Elections’ impasse.
However, the performance surpassed all preceding years as a result of the practices implemented by the Bank coupled with efficient management of its assets and liabilities, among other strategies. The Bank has also played its role in Central Bank-guided initiatives to cushion the economy from the fallout of the COVID-19 pandemic.
For instance, it was announced that as of the end of March 2021, over $28 billion in banking relief to businesses in various sectors had been provided, helping to cushion them.
According to the Bank of Guyana’s first-quarter report, businesses benefited from a total of $28.8 billion in banking relief measures as of March 2021, as part of COVID relief. According to the Bank in the report, these measures were implemented in collaboration with the Guyana Association of Bankers Incorporated.
The report notes that the amount of relief provided represents 10.8 per cent of total loans. This is compared to 5.5 per cent of total loans last year-end. The report also includes a breakdown of the relief measures by sector. The largest beneficiary was the services sector, with 57.4 per cent.
The manufacturing sector benefited from 10.8 per cent of the relief measures, followed by mining and quarrying with 5.2 per cent and agriculture with 4.8 per cent. About 18.9 per cent or $5.4 billion in relief was granted to the real estate mortgage sector. All banks contributed to this sector, with one bank in particular providing $2 billion of relief.
Back in August of last year, President Dr Irfaan Ali had announced a series of measures agreed with the local banking sector to ease the burden on citizens. These include lowered interest rates and an extension of the moratorium on loan payments.
The Head of State had also announced that the Bank of Guyana would relax certain requirements that would allow banks to cushion their losses and increase liquidity by $9.4 billion. In December of last year, all of these COVID-19 relief measures were extended until June 2021.
