Demerara Bank’s taxed profit increases by 51% to $1.3B
Half-year financial report
Despite tough operating conditions and challenges within the global environment, Demerara Bank Limited (DBL) has recorded a 51 per cent increase in profit after tax, which has gone up to $1.312 billion.
The bank has credited this record-breaking financial performance at the interim period ended March 31, 2021 as a result of its resilient business-model and astute leadership, which have propelled the Bank for nearly three decades.
According to DBL, a profit before taxation of $2.1 billion was recorded, reflecting an increase of 59 per cent for the first half of the financial year; and the taxed profit of $1.312 billion represents a growth of $871 million registered in the corresponding period of 2020.
Demerara Bank also saw an expansion of its balance sheet during its interim period, as loans & advances rose by 7 per cent from $37.6 billion to $40.3 billion. In addition, total deposits increased by 18 per cent to $87.9 billion, as compared to $74.7 billion in the previous year; while net interest income showed an increase of 9 per cent to $2.1 billion from $2 billion last year, backed by increased investment activities.
Further, the bank’s total assets grew by 17 per cent to $105.6 billion, compared to $90 billion during the same period last year, while total operating expenses marginally increased by 2.5 per cent to $606 million, highlighting the cost containment measures adopted by the Bank.
In view of the Bank’s solid performance, shareholders’ earnings per share increased by 51 per cent, from $3.87 to $5.83 per share, and the Board of Directors has recommended an Interim Dividend of $0.40 per share, compared to $0.25 per share paid in 2020.
Chairman of Demerara Bank Limited, Yesu Persaud, said, “The Bank’s remarkable performance is a testament of our resilience. Even though the COVID-19 pandemic continues to increase market volatility, resulting in extreme challenges in the business environment, we will continue to reassess our growth strategies, build resilience, and ensure long-term sustainability.”
Going forward, the Bank said it remains optimistic in its outlook on the future, and plans to focus its strategies on providing a differentiated customer experience, leveraging on technology to provide uninterrupted banking services, and directing its resources to ensure the health and well-being of its customers, employees, and the communities in which it operates.
Among many other things, Demerara Bank will continue a green and sustainable environment, which to date has seen all its buildings being retrofitted with solar power, resulting in substantial savings over the last four years. It will also be reviewing the strategies to benefit from opportunities that exist in the Oil and Gas industry, which could have tremendous advantages for all local businesses.
This half-year performance is consistent with the pattern recorded in DBL’s last end-of-year report, in September 2020, when the bank achieved a $2.263 billion profit after tax, representing an increase of 4 per cent over the previous year.
That performance was especially significant, since it was achieved during a period that was challenged by the COVID-19 pandemic as well as the March 2020 General and Regional election’s impasse. However, the performance surpassed all preceding years, as a result of the practices implemented by the Bank being coupled with efficient management of its assets and liabilities, among other strategies.