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Demerara Bank Limited has announced that it recorded a after tax profit of $2.263B this year-which represents a 4% increase over the previous year.
The bank said too that it was able to achieve a Profit Before Taxation of $3.5 billion, an increase of 2.8% over the previous year. The shareholders’ funds increased by 10% to $15.4 billion. The Bank said it has maintained exceptionally high Returns on Shareholder’s funds over the years, recording a return of 14.6% in 2020.
Meanwhile, the Bank said it has paid excellent dividend over the year “and this year we will be paying our highest dividend yet once approved at our AGM. The share price which was $3 in 2003-2004 now stands at $91 which gives substantial capital appreciation to investors,” the report stated.
Additionally, the bank noted that total Deposits of the Bank increased from $68.3 billion to $78.1 billion; an increase of 14.4% over the previous year. Loans and Advances moved from $36.7 billion to $40.4 billion, an increase of 10% over the 2019 corresponding period. Investments of the Bank stood at $33 billion for the year ended September 2020.
Earnings Per Share increased from $4.84 to $5.03 per share as at September 30, 2020. Return on Average Assets as at September 30, 2020 was 2.4%.Return on Shareholders’ Funds has been substantial over the year and recorded a return of 14.6% for the year ended September 30, 2020. The Book Value of the shares has gone up from $31.25 per share in 2019 to $34.33 per share in 2020; showing a rise of 9.9% over the previous year.
The profit and profitability of Demerara Bank is exceptional when compared to other financial institutions in Guyana having the highest return on assets- averaging 2.6% and the lowest cost-income ratio of 40%. Our Capital Adequacy Ratio over the years remained in the vicinity of 30% which is far above the 8.0% regulatory norm in Guyana, the bank asserted.