The Demerara Bank Limited achieved a profit of $560 million after tax for the year ended September 30, 2007 compared to $283 million in the preceding year, an increase of 98%.
In his report to the shareholders in the Annual Report for the annual general meeting scheduled for December 5, 2007 the Chairman Mr Yesu Persaud says that the Rosehall Branch has done well in garnering deposits and has made a profit for the first time since opening for business four years ago.
The Bank, he announced, has plans for the expansion of its branch network and permission has already been obtained to open two branches early next year.
The Bank’s Deposits have increased from $16.2 Billion to $17.9 Billion, an increase of 10.5% over the previous year. Savings Bank Deposits have moved from $4.4 Billion to $5.3 Billion, an increase of 20.8% over the previous year.
The investment portfolio, the Chairman said, has decreased over the year from $6.1 Billion to $4.4 Billion as at 30th September 2007 but the average investment during the period remained in the region of $9 Billion showing a rise of 49% over the previous year, the Chairman said. He noted that earnings from investment increased from $465 Million to $594 Million during the year.
Average Net Assets during the period moved from $17 Billion to $19 Billion and outstanding Net Assets as at 2007 stood at $20.6 Billion.
The return on average assets was 2.94% compared to 1.73%, in the previous year, an increase of 70%. It should be noted, the Chairman said that the Return on Average Assets at 2.94% was the best to date amongst all commercial banks in Guyana.
The Earnings per Share was $1.25 compared to $0.63 last year, an increase of almost 100% over the previous year.
Market capitalization improved from $1.12 Billion in 2001 to $6.3 Billion in 2007.
The return on investment to the shareholders on an annualized basis, he said, was excellent considering the rise in share value during the last three years.
The Return on shareholders’ funds increased from 17.5% to 28%, an increase of over 60% over the previous year.
The Capital Adequacy Ratio improved from 16.6% to 20%, more than double the required bench mark ratio of 8%. This offers greater opportunities and scope for business initiatives and lending, the Chairman said.
The Bank has paid an interim dividend of 12% in the month of April 2007 and the Board of Directors have recommended a final dividend of $0.28 per share, making the total dividend payable for the year $0.40 per share, Persaud said.
This would be the highest dividend paid by the bank in its history, if approved by the shareholders at the Annual General Meeting.
Loans and Advances increased from $5.6 Billion to $5.9 Billion, an increase of 5.1% over the previous year. Net non-performing loans have been reduced to $82 Million which the Chairman said reflected adequate provisioning for non-performing loans. “The few non-performing loans which are remaining in the books are covered with adequate security and we are hopeful of reducing our non-performing loans substantially during 2007-2008”.
The bank had diversified its loan portfolio as follows: Agriculture -16.78%, Mining & Quarrying – 3.00%, Manufacturing- 12.31%, Construction & Engineering – 5.67%, Commercial/Trading Distribution -20.93%, Real Estate – 6.12%, Services – 22.63% and Consumption -12.56%.
“E-Banking has been implemented in a high-security environment which protects our customers’ confidentiality from their homes or offices all the way to the Bank’s premises. The overwhelming acceptance of this new service and its seamless introduction into the daily business activities of our customers is very encouraging”, the Chairman said.