Demerara Bank Limited (DBL) has registered a whopping after-tax profit of $4.06b for the financial year ended September 30, 2023 compared to $2.95b last year, an increase of 37.5%.
According to its Consolidated Financial Statements published in today’s Stabroek News, a significant portion of the expanded profit comprises other income which moved from $758m in 2022 to $2.74b this year.
Chairman of the bank, Komal Samaroo in his review said that it had been an outstanding year for DBL as it had recorded the best financial results in its history.
The deposits of the bank also registered substantial growth, rising by 30% from $106.9b to $139.1b. Loans and advances jumped by 22.7% from $58.1b to $71.3b.
He said that the Board of Directors have recommended a final dividend payment of $1.80 per share. This proposed dividend when combined with the interim dividend of $0.45 per share already paid would bring the total dividend for the year to $2.25. The total dividend paid in 2022 was $2.
Interest income from loans and advances was $5.17b in 2023 compared to $4.29b in 2022. Interest income from investments totaled $2b in 2022 compared to $1.6b in 2023.
Net credit impairment in 2023 was $825m compared to a recovery of $362m. Income before taxation was $4.88b in 2022 and $5.9b this year.
In a statement, Demerara Bank says its “exceptional performance” can be ascribed to several key factors. It said financial discipline, a strategic investment approach and continuous development of human resources have paved the way for the bank’s success.
It said that the bank has actively driven economic growth by diversifying its credit portfolio and making credit accessible across all major sectors.
“To put this in perspective, when compared to the banking sector’s advances as of September 30, 2023, Demerara Bank has made significant contributions, accounting for 61% of Agriculture, 27% of Mining, 55% of Manufacturing, 24% of Construction and Engineering, and a remarkable 90% of Telecommunications”, the bank said.
It said that in an industry where non-performing loans are often a concern, Demerara Bank has “a spotless record with no non-performing loans for two consecutive years”.
The statement said that the Bank’s asset base expanded by 26% to $159.589 billion by the close of the 2023 financial year, compared to the $126.570 billion recorded in the prior year. The Return on Average Assets as of September 30, 2023, was 2.85% which it said is higher than the industry average. The bank says it has also maintained a Capital Adequacy Ratio well above the prudential benchmark of 8.0 set by the Central Bank.
In relation to investments, the bank said that despite the challenging global market landscape, the bank’s investment portfolio delivered strong returns.
It added that the Return on Shareholders’ Funds was substantial, recording a 20.6% return for the year ending September 30, 2023. Earnings Per Share also rose from $6.57 to $9.06 per share as of September 30, 2023, indicating an increase of 37.9%.
In relation to community support, the release said that Demerara Bank’s impact extends well beyond financial achievements through its active engagement in corporate social responsibility (CSR) initiatives, with a focus on education, health, and social development. Key initiatives in the past year include supporting victims and families affected by the tragic Mahdia Fire, a donation towards the expansion of the Saraswati Vidya Niketan School, part-sponsorship of various children seeking medical intervention overseas, the offering of low-cost loans to vendors affected by the Parika Market Fire etc.
The bank’s profit after tax has jumped from $2.18b in 2019 to $4.06b this year. Dividends have moved from $1.40 per share in 2019 to 2.25 per share in 2023.
