Demerara Bank records taxed profit of $2.95B in 2022

…demonstrates resilience in challenging macroeconomic environment – Chairman

Demerara Bank Limited has recorded another outstanding financial year, raking in some $2.95 billion dollars in profits after tax with a 25 per cent growth in its credit portfolio.

According to the bank’s audited financial records for the year ended September 30, 2022, its pre-tax profit was $4.9 billion.
The bank’s total deposits saw an increase from $92.9 billion to $106.98 billion as at September 30, 2022 – representing a 15 per cent hike.
Loans and advances also grew by 25 per cent from $46.38 billion to $58.19 billion over the said period. It was reported that the DBL’s portfolio for loans and advances has grown by a whopping 116 per cent over the last five years from $26.8 billion in 2018 to now $58.1 billion in 2022.
In addition to this, the bank reported that prudent management of its credit risks has resulted in the bank having zero Non-Performing Loans as at the end of the period September 30, 2022.
“This is an extraordinary achievement for the bank and is historically unheard of in the local banking sector,” DBL’s Chairman Komal Samaroo said in his report.

The financial records also show improvements in areas such as assets, which increased from $114.5 billion in 2021 to 126.57 billion at the end of September 2022. This includes cash increasing from $726.4 million in 2021 to now $990.5 million. While its statutory deposits with Central Bank grew from $9.4 billion last year to $12.8 billion in 2022; other deposits with the Central Bank went from $10.5 billion in 2021 to $4.59 billion in 2022. Meanwhile, taxation payable decreased from $1 billion last year to now $724.9 billion this year.
Over the past year, the DBL lowered its home loan rates in support of the Government’s homeownership policy, making access to financing easy and affordable to persons of all income brackets.
Apart from the Housing Sector, the bank also continued to support other major sectors of the economy including rice, forestry and services.
In May this year, the bank launched its Farmers’ Credit Line where rice farmers were offered unsecured facilities up to the value of $1.5 million to aid with the rising cultivation costs. Later in October 2022, it was announced that the Guyana Government in collaboration with Demerara Bank will be establishing a $900 million revolving fund to support the forestry sector.
Continuing in its stride, Demerara Bank Limited, which currently has eight branches located across the country, will soon be opening its doors in the village of Leonora, West Coast Demerara. This branch will be integral to bridge the banking needs of residents in the area and its environs, and will provide a full line of services similar to that offered across its branch network.
Owing to the bank’s performance, 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 the total dividend payments to $2.00 per share for the full year, subject to an approval by the shareholders and Bank of Guyana.
Commenting on the performance of the bank, Chief Executive Officer (CEO) Pravinchandra Dave indicated that he is pleased with the financial results for the 2022 given the level of uncertainties being faced globally. These results, he said, clearly show that the bank is capable of steering through the ever-changing operating landscape, while remaining committed to its core responsibilities towards the people of Guyana.
Meanwhile, Chairman Samaroo said the bank’s solid performance is a clear “demonstration of its resilience in the midst of a challenging macroeconomic environment”. He added too that it is attributed to the commitment of the bank’s staff and the efficient deployment of its resources.
However, even with this sterling performance, Samaroo posited that the past year has been a difficult one for Demerara Bank with the passing of its Founder and Chairman, Dr Yesu Persaud, as well as long-standing Director Dr Leslie Chin.
“Despite these tremendous losses and heightened challenges in the global economic environment, Demerara Bank Limited continue to build on its resilience through solid business strategies and prudent management of its resources,” Samaroo stated.
This latest financial performance of the bank is consistent with the pattern recorded in DBL’s previous end-of-year report.
In its 2021 financial report, DBL reported a 31 per cent increase in its net profit, at $2.95 billion. (G8)