Demerara bank limited Chief Executive Officer Report for Month of August 2011.

demerara bank limited

Chief Executive OfficerReport for Month of August 2011


DepositsDeposits (G$‘000) Aug 2011 Aug 2010 % Inc

Savings 17,126,447 11,942,114 44%

Demand 4,116,765 2,157,338 91%

Term 9,887,250 15,941,661 (38%)

TOTAL 31,130,461 30,041,114 4%

Profit for the month 106,686 74,627 43%

Cumulative Profit for the year 1,375,872 819,081 68%


Advances

Loan and overdraft applications in process –G$59,000,000Loans approved but not disbursed –G$1,007,710,566

Advances (G$‘000) Aug 2011 Aug 2010 % Inc

Term Loans 6,907,974 4,640,409 49%

Overdrafts 4,765,139 5,783,824 (18%)

Total fund based Advances 11,673,113 10,424,233 12%

Other BondsGuarantees

( Non-fund based)

1,204,397 2,378,854 (50%)

Average Yield on Advances (% p.a.) 12,877,510 12,803,087 1%

Non-Performing Assets 272,151 299,611 (10%)

Provisions for NPAs 268,422 490,216 (46%)

Recovery during month 2,394 200


InvestmentsInvestment (G$‘000) Aug 2011 Aug 2010 % Inc

Treasury Bills 100,000 500,000 (80%)

Local Bonds & Other Investment 226,976 226,976 -

Overseas 18,458,959 17,417,704 6%

TOTAL 18,785,935 18,144,680 4%

Income on Investment 94,564 72,608 30%

Tax Free Income 41,330 29,900 38%

Total Tax free income for the current

financial year (actual)11 mths + low

income GL a/c #9200005

435,446 432,465 1%

Yield on investment 6.86% 4.9%


Profitability(GYD Millions) Aug 2011

Exchange Earnings 13.9

Net Interest Income 127

Interest Expense 57

Yield on Advances 10.18%

Cost of Funds 2.20%

Average Advances 11.9Bln

Investments 14.5 Bln

New Accounts 282

Total Accounts 59,724

(GYD Millions) Aug 2011

Amalgamated Operational Profit

106.68

Main Branch 130.67

Rose Hall (10.13)

Corriverton (5.2)

Anna Regina (2.5)

Diamond (6.15)


Foreign Currency

Purchases USD14.6 Million

Sales USD20.4 Million

Average Spread GYD 0.85

Trading Profit GYD17.3 Million


Branch DepositsRose Hall Corriverton Anna

Regina

Diamond

Date of opening Feb. 4, 2004 Aug. 4, 2008 May 25, 2009 Feb. 28, 2011

Deposits G$3.3B G$1.7 B G$947M G$165M

Total No. of Accounts

held to date

9,005 3,655 3,441 760

Accounts opened 105 102 69 101

Profit/Loss (G$10.13M) (G$5.2M) (G$2.5M) (G$6.15M)

Cost of Fund 2.92% 2.57% 1.76% 0.39%

Non-interest Expenses G$31.1M G$27.14M G$19.9M G$22.68M


Staff Moves

Resignations/Terminations– nil New Staff – One(1)

Amelia Sookhdeo – Savings/DDA


Inter Bank Dealings

July 2011Borrowed Lent

- 800 million

Interest Paid: -Interest Received: 98,631.00

There was no interbank trading for the month of July


Schedule of InvestmentsBonds USD 50,730,739.53 10,349,070,864 Treasury Bills USD - - Equity USD 325,694.35 66,441,647

CDs/DCDs USD 8,000,000.00 1,632,000,000

Money Market A/cs USD 22,888,046.20 4,669,161,425

81,944,480.08 16,716,673,936

Bonds GBP 7,180,735.29 1,464,869,999

Treasury Bills GBP - -

Money Market A/cs GBP 242.15 49,399

7,180,977.44 1,464,919,398

Bonds EUR 1,354,668.14 276,352,301

T/Bills EUR - -

Money Market A/cs EUR 4,811.17 981,479

1,359,479.31 277,333,779

Money Market A/cs CAD 157.73 32,177

157.73 32,177

Total Foreign Investments

USD 90,485,094.56 18,458,959,290

Type Value GYDBonds GYD 200,000,000 Treasury Bills GYD 100,000,000 Equity GYD 26,976,333

Total Local Investments

GYD 326,976,333

Total Investments USD 92,087,919.72 18,785,935,623

Liquidity Analysis % GYDShort Term 34 6,368,666,126 Long Term 66 12,417,269,497

100 18,785,935,623


Schedule of Investments

USD GYD % of

Portfolio

Caribbean Exposure 25,847,608 5,272,911,963 28.1

Indian Banks -Bonds 8,591,625 1,752,691,500 7.79

Europe 9,730,500 1,985,022,000 11.1

UK Banks 7,716,985 1,574,264,999 8.4

Brazil 5,591,425 1,140,650,700 6.1

USA 1,788,000 364,752,000 1.9


Year End Audit

Nizam Ali & Company (external auditors) have commenced year end audit and as per audit program discussed with them, they should be able to finish audit of the Bank expeditiously.


eServices

First Facts 74 Companies 168 Accounts

Telebanking 288 Users

eBanking 2,204 Users

These services are all offered free.


ATM/Point of SaleLocation Value (G$) Transactions

ATM Debits

Camp Street 115,307,500 9,882

City Mall 54,592,500 5,118

DDL Diamond 20,938,500 1,768

Diamond Branch 35,815,000 2,963

Rose Hall 11,689,500 1,097

Corriverton 7,754,500 721

Anna Regina 7,760,500 592

Charity 911,500 54

POS Debits 989,912 128

TOTAL 247,998,912 22,323

ATM Credits

Camp Street 7,489,358 335


Le Ressouvenir Branch

The new branch is close to completion. We are currently awaiting installation of a 50 KVA transformer and electric meter from GPL, water supply and changeover switch for the generator. Once these have been completed, we can proceed to take occupancy of the branch and complete installation of the internal services and furniture. We can probably open the branch in the month of October 2011.


Mobile/Wireless Point of Sale

A pilot project for wireless point-of-sale machines has been launched and we have given three(3) machines to:

• N & S Mattai & Co.• Distribution Services Ltd (DSL)• Nigel’s Supermarket

Once these are successful, we shall purchase more machines and give them to more corporate clients.We shall also simultaneously launch same by way of a marketing campaign.


Global Scenario

The global financial scenario continuously remain highly volatile on account of sovereign debt crisis in Europe and debt and deficit crisis in the United States. We are in a synchronized global slowdown. Greece may have to come out of the European Union (EU) as it seems it will not be able to service its debt obligations at the present level. The contagion effect of any blowout in the EU will have serious impact on liquidity in the Banking System as well as solvency of certain financial institutions. The risk aversion has taken place resulting in depreciation of all major currencies of the world against the US Dollar. Treasury yield on 10-year US Bonds have gone down to 1.90% which is the lowest in the last three(3) years. Unless the EU takes some coherent actions to bail out Greece, Portugal, Ireland and Italy, the global financial world will have serious problems.


Guyana

The financial system in Guyana continues to be flushed with liquidity. Treasury Bills rate has gone below 2%. It seems that entrepreneurs are delaying their decisions and waiting for the outcome of the forthcoming General Elections in Guyana. In Guyana, it is not a question of having a stable Government, but elections free of violence is a major problem. Elections are likely to be in the month of November 2011 though no exact dates have been announced.


Interest Income Advances Investments Deposits 09-10 10-11 09-10 10-11 09-10 10-11Oct 9,163 10,443 15,737 10,216 24,913 28,577Nov 9,207 10,999 16,010 10,887 25,785 29,394Dec 9,286 11,057 16,028 11,359 27,880 29,114Jan 9,035 10,891 17,967 12,016 28,010 27,985Feb 10,004 10,871 16,430 12,303 28,702 28,733Mar 9,854 11,203 16,810 11,429 28,739 28,850Apr 10,063 11,587 18,259 11,321 30,093 29,391May 9,960 11,500 18,737 13,583 30,593 31,404Jun 9,946 11,556 18,930 13,538 30,264 32,803Jul 10,397 11,606 18,683 14,023 29,639 32,152Aug 10,912 11,942 18,145 14,531 30,042 31,130Sep 10,122 - 17,189 - 28,536 -Tot 117,948 123,653 208,927 135,207 343,196 329,534Avg 9,829 11,241 17,411 12,292 28,600 29,958


Interest Spread Avg Interest (Adv) Avg Interest (Inv) Avg Interest Exp Avg Spread (Adv) Avg Spread (Inv)

09-10 10-11 09-10 10-11 09-10 10-11 09-10 10-11 09-10 10-11

Oct 10.34% 10.35% 4.49% 8.57% 3.89% 3.25% 6.45% 7.10% 0.60% 5.32%

Nov 15.41% 9.93% 6.39% 8.87% 3.62% 3.02% 11.79% 6.91% 2.77% 5.85%

Dec 10.62% 10.45% 6.59% 8.33% 3.57% 2.82% 7.05% 7.63% 3.03% 5.51%

Jan 11.38% 13.43% 3.99% 8.60% 3.76% 2.46% 7.62% 10.96% 0.23% 6.14%

Feb 9.08% 9.98% 2.64% 7.76% 3.38% 2.42% 5.70% 7.56% 0.74% 5.34%

Mar 10.57% 10.62% 6.06% 6.25% 3.61% 2.44% 6.96% 8.19% 2.45% 3.82%

Apr 10.27% 10.48% 5.13% 8.46% 3.38% 2.40% 6.89% 8.08% 1.75% 6.06%

May 10.83% 8.85% 5.33% 8.08% 3.61% 2.31% 7.22% 6.54% 1.73% 5.77%

Jun 10.59% 8.95% 5.12% 8.55% 3.27% 2.06% 7.31% 6.89% 1.85% 6.49%

Jul 10.24% 11.24% 5.43% 9.45% 3.51% 2.13% 6.73% 9.11% 1.92% 7.32%

Aug 10.18% 10.18% 4.88% 6.86% 3.57% 2.20% 6.61% 7.97% 1.32% 4.66%

Sep 12.66% - 4.52% - 3.31% - 9.35% - 1.21% -

Tot 132.17% 114.45% 60.58% 89.79% 42.48% 27.51% 89.69% 86.94% 18.11% 62.28%

Avg 11.01% 10.40% 5.05% 8.16% 3.54% 2.50% 7.47% 7.90% 1.51% 5.66%


Exch Gain & Commissions

Exchange Comm & Other Income 09-10 10-11 09-10 10-11Oct (17,698) 14,636 965 173,177Nov 63,595 19,636 6,356 15,063Dec 17,183 27,509 7,477 5,458Jan 24,383 17,828 6,618 2,776Feb 25,795 19,760 7,528 6,191Mar 11,521 (86,700) 74,369 7,961Apr 29,363 128,566 20,260 7,925May (31,564) 16,498 4,442 36,292Jun (3,831) 11,981 110,542 8,977Jul 3,427 42,386 33,927 8,331Aug 4,023 13,913 35,564 8,594Sep 75,373 - 439,614 -Tot 201,569 226,013 747,662 280,745Avg 16,797 20,547 62,305 25,522


Balances Advances Investments Deposits 09-10 10-11 09-10 10-11 09-10 10-11Oct 9,163 10,443 15,737 10,216 24,913 28,577Nov 9,207 10,999 16,010 10,887 25,785 29,394Dec 9,286 11,057 16,028 11,359 27,880 29,114Jan 9,035 10,891 17,967 12,016 28,010 27,985Feb 10,004 10,871 16,430 12,303 28,702 28,733Mar 9,854 11,203 16,810 11,429 28,739 28,850Apr 10,063 11,587 18,259 11,321 30,093 29,391May 9,960 11,500 18,737 13,583 30,593 31,404Jun 9,946 11,556 18,930 13,538 30,264 32,803Jul 10,397 11,606 18,683 14,023 29,639 32,152Aug 10,912 11,942 18,145 14,531 30,042 31,130Sep 10,122 - 17,189 - 28,536 -Tot 117,948 123,653 208,927 135,207 343,196 329,534Avg 9,829 11,241 17,411 12,292 28,600 29,958


Admin Expenses Staff Costs Administration Costs Prem & Vehicle Exp Net Profit

09-10 10-11 09-10 Provision 0-Jan Provision 09-10 10-11 09-10 10-11

Oct 244 (4,214) 7,738 - 12,341 - 3,769 3,938 28,662 261,370

Nov 54,123 76,941 13,666 - 9,393 - 3,874 3,047 123,940 42,880

Dec 18,670 21,054 14,723 - 14,001 - 3,694 3,145 74,928 101,425

Jan 19,341 19,072 11,006 - 11,968 - 3,456 3,481 54,787 136,593

Feb 15,858 17,434 13,405 - 9,904 - 3,415 3,987 31,736 106,613

Mar 18,639 20,507 12,575 - 12,891 - 3,641 5,298 136,348 (17,278)

Apr 18,238 20,314 24,722 - 10,935 - 3,519 3,878 82,557 223,628

May 19,587 20,562 8,162 - 17,085 - 3,794 4,722 22,519 126,305

Jun 15,939 20,742 8,837 - 9,474 - 3,360 4,273 164,546 112,803

Jul 25,345 25,630 7,510 - 8,460 - 3,201 3,882 87,920 174,847

Aug 18,437 20,444 17,244 - 13,346 - 6,309 9,253 74,627 106,686

Sep 47,931 - 11,250 - - - 468 - 333,151 -

Tot 272,353 258,488 150,838 - 129,798 - 42,500 48,902 1,215,721 1,375,872

Avg 22,696 23,499 12,570- 11,800 3,542 4,446 101,310 125,079


Chief Executive Officer

Demerara bank limited Chief Executive Officer Report for Month of August 2011.

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