Demerara Bank records billion-dollar profit

TIMES INT'L

Demerara Bank Limited has recorded a gross profit of G$1.2 billion during this year, reflecting a 20 per cent increase in profits over last year.

The bank is reported to have recorded growth in all the areas of profit: deposit growth, reduction of non-performing assets, and increase in shareholders’ funds. The bank’s deposits have increased from G$24.9 billion in 2009 to G$28.9 billion in 2010 – a 16.06 per cent increase over the previous year. 

Due to the increase in profits this year, higher dividends will be paid, and a final dividend of G$0.34 per share was approved by the bank’s shareholders, the bank said in a statement on Wednesday, December 22nd. Despite the challenges in the financial world, chairman of the bank, Yesu Persaud, noted that the bank remains highly liquid, and always tries to identify opportunities for deploying higher credit. A diversified loan portfolio is maintained, and one of the most notable features of the bank’s performance is the management of non-performing assets, he said. The bank’s net worth rose from G$3.6 billion in 2009 to G$4.3 billion. Advances also rose from G$8.7 billion in 2009 to G$9.9 billion in 2010.

The bank has said that it places a lot of emphasis on good governance, which is based on sound business ethics and a strong professional approach to its banking operations, as these enhance the image and reputation of the bank and make it attractive to customers, investors and other interested parties. 

Among the bank’s plans for the next five years is offering banking services to areas where there are no banks.

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