DBL reports ‘phenomenal’ 51% growth in profit

May 07, 2021 News

Kaieteur News – Despite tough operating conditions and challenges within the global environment, the financial performance of Demerara Bank Limited as at the interim period ended March 31, 2021 was record breaking as a result of the Bank’s resilient business-model and astute leadership that have propelled the Bank forward for nearly three decades.
The Bank is reporting a Profit before Taxation of $2.1 billion, an increase of 59% for the first half of the financial year, and a Profit after Taxation of $1.312 billion up from $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% from $37.6 billion to $40.3 billion. Total Deposits increased by 18% to $87.9 billion as compared to $74.7 billion in the previous year, while Net Interest Income showed an increase of 9% to $2.1 billion from $2 billion last year, backed by increased investment activities.
Total assets grew by 17% to $105.6 billion compared to $90 billion during the same period last year, while total operating expenses marginally increased by 2.5% to $606 million, highlighting the cost containment measures by the Bank.
In view of the Bank’s performance, shareholders’ earnings per share increased by 51% 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.
“The Bank’s remarkable performance,” said Dr. Yesu Persaud, Chairman of Demerara Bank Limited, “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.”
The Bank remains optimistic in its outlook of the future and plans on focusing 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, the Bank will continue a green and sustainable environment which to date has seen all the buildings owned by the bank retrofitted with solar 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 advantage for all local businesses. (DBL)

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