Demerara Bank hits $2.17B in after-tax profit

As it celebrates its 25th anniversary, Demerara Bank Ltd has registered an after-tax profit of $2.177 billion for the financial year ended September 30th, 2019 and plans to pay out the highest dividend in its history.

According to its financial statements published in yesterday’s Kaieteur

News, this year’s after-tax profit is 6.7% above the corresponding period last year.

In his Chairman’s review, Dr Yesu Persaud said, “As we look back on the history of the bank, we are proud of our progress over the last twenty-five years since it represents the bank’s continuous contribution to Guyana’s development.

It was very challenging to form a totally indigenous Bank without the management, finance and technical collaboration from overseas institutions, but we have weathered the storm, emerging among our peers in many aspects. Today, through diligent efforts, we can say we have contributed to the country’s economy in multiple ways as one of Guyana’s leading financial institutions with our expanded network of seven branches and a team of over 200 employees.”

Persaud added that the Board of Directors has recommended a final dividend payment of $1.05 per share, which, if approved, will bring the total dividend for the year to $1.40 per share and would be the highest payout since it began operations in 1994.

Interest income for the bank rose from $2.26 billion in 2018 to $2.6 billion this year. The interest expense on savings deposits was up sharply from $273.6 million last year to $358 million this year.

There was a small rise in the interest expense on term deposits from $484.8 million last year to $491.6 million this year.

Net credit impairment was also sharply up from $125 million last year to $299.7 million this year.

Taxation for the year was $1.23 billion, compared with $1.08 billion last year.