Based on its unaudited financial statements for the half year which ended on March 31, 2021, Demerara Bank Limited (DBL) has registered profit after taxation of $1.312b compared to $871m for the corresponding period in the previous year.
In his review published in today’s Stabroek News, Chairman of the bank, Yesu Persaud noted that the profit after tax was up by 51%.
Deposits at the bank increased from $74.7b to $87.9b, an increase of 18%. Loans and advances moved from $37.6b in 2020 to $40.2b this year – a rise of seven percent.
The financials show that interest income for the half year ended on March 31, 2020 was slightly down compared to the comparable period in 2020. The figure for 2020 was $1.604b while for 2021 it was $1.603b. However, there was a significant increase in income from investments. The figure for 2020 was $837m while for 2021 it was $1.017b.
Interest expense was up from $473m in 2020 to $476m in 2021. In 2020, DBL registered $725m in loan losses net of recoveries. There was no entry for 2021 and this has enabled the large profit that has been recorded for the period.
The annualized earnings per share for 2021 is 5.83 compared to 3.87 in 2020.
In his review, Persaud said that based on the financial performance for the first six months of the financial year, the Board of Directors has recommended an interim dividend of $0.40 per share. Last year, an interim dividend of $0.25 was paid.
Persaud said that globally, the COVID-19 pandemic has “reshaped the banking industry across multiple dimensions and has hastened the need for digital innovations to support operational resilience”.
