Demerara Bank Limited’s (DBL) profit after tax for the year 2024 zoomed up by 37% compared to last year’s figure.
According to the Bank’s financials published in today’s Stabroek News, profit after tax rose from $4.08b last year to $5.59b for the year ended September 30, 2024.
In his review, Bank Chairman Komal Samaroo noted that DBL will be celebrating 30 years in business this year.
“This year has been truly exceptional for our bank, marked by outstanding financial achievements that have set new benchmarks in our history. Our remarkable performance reflects the dedicated efforts of the entire team and sound strategic decisions that have driven us to this pivotal milestone.
There was a 19% increase in pre-tax profits and Samaroo said that deposits appreciated by 25% from $139b to $174b. Loans and advances grew by 34% from $71.3b to $95.3b.
“Despite this robust expansion in lending, the bank has maintained its exemplary record of zero non-performing loans. While banking sector advances grew by $63.3 billion over the last 12 months, I am pleased to report that Demerara Bank contributed $24 billion or 38% of that growth”, Samaroo said.
He added that the Board of Directors has recommended a final dividend of $2.40 per share which if approved at the Annual General Meeting and when combined with the interim dividend of $0.60 will result in total dividends of $3 per share.
Interest income from loans and advances amounted to $6.33b this year compared to $5.17b last year. Income from investments dropped from $1.63b last year to $871m. Net credit impairment rose from $825m last year to $1.66b this year. Non-interest expenses grew from $1.94b last year to $2.63b this year. Taxation declined from $1.86b last year to $1.47b this year. Earnings per share in dollars rose from 9.03 last year to 12.34 this year.
Meanwhile in a press release to accompany its financial statements, DBL said that with the aid of technology, its loans and advances soared to $95.36 billion.
“This growth reflects DBL’s strategic efforts to diversify its lending portfolio, with notable expansions in agriculture, real estate, SME’s and services, all supporting the growing Guyanese economy. While driving sectoral growth, the bank maintained zero non-performing loans for the third consecutive year, underscoring disciplined credit management. Accounting for 38% of the total increase in industry-wide lending, DBL reinforced its role as a major contributor to Guyana’s economic progress. This milestone year was also marked by strategic investments in customer centred technology, disciplined risk management and continued commitment to modern, customer-focused solutions. Enhanced technological infrastructure further underscored DBL’s mission of economic empowerment and innovation. The Bank has planned a series of transformational technological roll-outs within the next few months that will improve customer experience. These rollouts will soon be announced to the public”, DBL said.
Other Key Financial Highlights according to the DBL release:
Return on Average Assets: The Return on Average Assets increased to 3.1%, exceeding the industry average of 2.11%
Market Share of Bank-ing Assets: This increased by 22% over the last five years.
Sectoral Diversifica-tion: Lending in key sectors in 2024 included residential / commercial real estate, consumer financing, services, SME’s & Agri-culture and other important sectors, reflecting the banks strategic focus on diverse economic support.
Enhanced Capital Adequacy: The capital adequacy ratio rose to 23.53%, exceeding the industry average of 18.11% and the regulatory benchmark of 8%.
Robust Asset Growth: Total assets expanded by 27% to $202.23 billion, highlighting the bank’s robust financial health and capacity for future growth.
The CEO, Dowlat Parbhu, articulated the bank’s enduring promise “We have always aimed to build a bank that offers modern, customer-focused financial solutions while adhering to the highest standards of trust, transparency, and stability.”
