Demerara Bank says it has recorded a net profit of $2.041 billion for the year ended September 30, 2018, representing growth of 28% compared with the same period last year.
In a statement issued yesterday, Demerara Bank said that due to its “excellent” performance in today’s “challenging” economy, its Founder and Chairman Dr. Yesu Persaud declared favourable dividends to be paid to the shareholders, with a final dividend payment of 100%, while the interim dividend paid was 35%, which was the highest paid in the history of the bank.
The bank noted that it generated a gross profit of $3.127 billion in 2018, representing an increase of 31% over the gross profit of $2.396 billion recorded for 2017. The net profit of the bank also increased from $1.599 billion in 2017 to $2.041 billion in 2018, it added.
The bank also reported that its deposit base rose to $58.2 billion in 2018 as compared to $57 billion in 2017, while loans and advances grew from $25.46 billion to $26.8 billion. It added that managing net non-performing advances remains a challenge throughout the banking sector in Guyana but nonetheless it recorded reductions from $783 million to $672 million for 2018.
Meanwhile, the bank said it continued to also make excellent progress in technology, innovation, diversity, risks and controls, and that it is committed to the growth of various business sectors, large and small, across Guyana.
Boasting that it is Guyana’s “first truly indigenous bank,” Demerara Bank said that the vision for a commercial bank birthed 24 years ago by its founder has proven wrong the skepticism by financial pundits at the time that an indigenous bank would never be successful without cooperation from foreign entities.
The statement added that the bank’s solid performance has proven that “a fruitful harvest” begins with one seed. “Concept-ualising an idea, nurturing and finally bringing it to fruition, is a skill few possess. To do [so] for the good of a nation is even more rare. Yet, Dr. Persaud has done it without receiving any consideration in any form. The nation is richer for it and Demerara Bank Limited owes a debt of gratitude to him,” it said.
The bank also noted that an examination of its performance over the last decade would reveal Demerara Bank “as the best performing commercial bank in Guyana,” all of which it said is due to the guidance of its founder, the bank’s efficient management and its commitment to caring for the welfare of the Guyanese community.
The bank further said it remains committed to furthering its growth and expansion by adding to its network of branches and providing innovative products and services to the local and international markets. In addition to what it describes as “its continuous success as a leading banking institution in Guyana,” the financial institution said it is a pioneer for implementing the country’s green initiative, while noting that three of its locations operate solely by solar energy. It said this is a commendable feat which demonstrates the bank’s effort and commitment to reducing its carbon footprint, along with its support of Guyana’s green initiative.