Demerara Bank Limited has recorded an after-tax profit of $2.9 billion for the financial year ended September 30, 2022.
According to the audited results for the financial year, the bank reported a pre-tax profit of $4.9 billion.
The after-tax profit compares with $2.95 billion for the previous financial year and $2.26 billion in 2020.
Demerara Bank Limited Chairman Komal Samaroo, in a 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 statement said the bank’s total deposits saw an increase of 15% to $106.98 billion as at September 30, 2022, while loans and advances grew by 25% from $46.38 billion to $58.19 billion over the same period. In addition to this, the bank reported that “prudent management” of its credit risks has resulted in it having zero non-performing loans as at the end of the period September 30, 2022.
According to the statement, Pravinchandra Dave, Chief Executive Officer, noted that that 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 the Bank is capable of steering through the ever-changing operating landscape, while remaining committed to its core responsibilities towards the people of Guyana.
The statement said that over the last year, the Bank lowered its home loan rates in support of the government’s home ownership policy, making access to financing easy and affordable to persons of all income brackets.
Apart from the housing sector, it noted that 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 $1.5 million to aid with the rising cultivation costs. Later in October, 2022, it was announced that the Government of Guyana in collaboration with Demerara Bank will be establishing a $900 million revolving fund to support the forestry sector.
Meanwhile, noting that there are currently eight Demerara Bank Limited branches located across the country, the statement announced that the bank will soon be opening its doors in the village of Leonora, West Coast Demerara. “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,” it noted.
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.
