Demerara Bank rakes in $2.9B in after-tax profits

Nov 22, 2022 News

Kaieteur News – Demerara Bank Limited disclosed yesterday that its pre-tax profit for the financial year ended September 30, 2022 totalled $4.9B.

Its after-tax profit for the year was $2.9B. Chairman Mr. Komal Samaroo, in his statement said that the bank’s solid performance is a clear demonstration of its resilience in the midst of a challenging macroeconomic environment and is attributed to the commitment of the Bank’s staff and the efficient deployment of its resources.

The bank’s total deposits saw an increase of 15% to $106.98B as at September 30, 2022, while loans and advances grew by 25% from $46.38B to $58.19B over the said period. 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.

Commenting on this performance, the bank’s CEO, Pravinchandra Dave said he is pleased with the financial results for the year 2022 given the level of uncertainties being faced globally. The results, he said, clearly shows that DBL is capable of steering through the ever-changing operating landscape, while remaining committed to its core responsibilities towards the people of Guyana.

Over the last year, the financial institution lowered its home loan rates in support of the government’s home ownership policy, thereby making access to finance 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 2022, the bank launched its Farmer’s Credit Line where rice farmers were offered unsecured facilities up to the value of $1.5M to aid with the rising cultivation costs. Later in October 2022, it was announced that government in collaboration with Demerara Bank will be establishing a $900M 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 newspaper understands that 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.