–reflects 51% increase when compared to same period last year

EVEN as Guyana continues to grapple with the effects of the dreaded novel coronavirus
(COVID-19) pandemic, which poses severe direct and indirect threats to the economy and its people, Demerara Bank Limited has remained resilient and was able to record a profit after tax of $1.3 billion in the first half of 2021.

Based on the company’s interim financial statements, the profit recorded in the “first half” reflects an increase of $871 million or 51 per cent, when calculated against earnings recorded during the corresponding period last year.

Chairman of Demerara Bank, Dr. Yesu Persaud, was quoted in the company’s statement as saying that deposits at the bank increased from $74.7 billion to $87.9 billion, an increase of 18 per cent. Loans and advances also increased, moving from $37.6 billion to $40.2 billion; this shows a rise of seven per cent over the same period last year.
Considering the financial performance for the first six months of the financial year, the bank’s Board of Directors has recommended an interim dividend of $0.40 per share. Last year, the company paid $0.25 per share as interim dividend.

“Globally, the COVID-19 pandemic has reshaped the banking industry across multiple dimensions and has hastened the need for digital innovations to support operational resilience,” Dr. Persaud said.

The prospects for this year, however, remain positive despite the pervasive pandemic, as the world economy is projected to improve by around six per cent. Locally, real Gross Domestic Product (GDP) growth was 43.5 per cent in 2020 and is projected to be in the vicinity of 20.9 per cent in 2021.
It was reported that Guyana’s economy will remain resilient against the effects of the dreaded novel coronavirus pandemic, maintaining its positive growth trajectory as the burgeoning petroleum sector picks up steam.

Based on the latest estimates released by the World Bank, the GDP of the Latin American and Caribbean Region will be 2.6 per cent lower at the end of 2021 than it was at the end of 2019.
According to the international financial institution, Guyana’s growth rate will remain in the double digits. Despite the lingering adversities, projections remain positive, with the country set to record economic growth of 20.9 per cent at the end of 2021, 26.0 per cent in 2022 and 23.0 per cent in 2023.