Demerara bank limited Chief Executive Officer Report for Months of October 2009.

demerara bank limited

Chief Executive OfficerReport for Months of October 2009


DepositsOct 2009 Oct 2008 % Inc

Savings 8,995,730 6,860,060 32%

Demand 2,106,636 2,312,412 (9%)

Term 13,818,741 13,257,472 5%

Due to Banks 365,976 405,779 (10%)

TOTAL 25,287,083 22,835,725 11%

Profit for the month 41,653 112,879 (63%)

Cumulative Profit for the year 41,653 112,879 -


Advances

Loan and overdraft applications in process –G$347,000,000.Loans approved but not disbursed -G$276,511,924

Oct 2009 Oct 2008 % Inc

Term Loans 4,755,808 3,595,269 33%

Overdrafts 4,415,791 4,510,306 2%

Total fund based Advances 9,171,599 8,105,575 14%

Other Bonds Guarantees ( Non-fund based) 2,015,039 2,139,827 (6%)

TOTAL 11,186,638 10,245,402 (10%)

Average Yield on Advances (% p.a.) 10.34% 10.9% -

Non-Performing Assets 575,881 722,991 (21%)

Provisions for NPAs 490,216 715,438 (32%)

Recovery during month 4,200 2,446 72%


Investments Oct 2009 Oct 2008 % Inc

Treasury Bills 100,000 100,000 -

Local Bonds & Other Investment 227,666 227,873 0.09%

Debenture of GOG 96,208 96,208 -

Overseas 15,656,296 13,343,101 17%

TOTAL 16,080,377 13,766,975 16.9%

Income on Investment 58,921 72,221 (18.4%)

Tax Free Income 39,791 60,612 (34%)

Total Tax free inc for the year (actual) 600 575 4%

Yield on investment 4.49% 10.34% (57%)


Inter Bank Dealings

October 2009

Borrowed Lent

G$3.83B G$400M

Interest Paid: G$436,575:-

Interest Received: G$43,836:-


Branch Deposits

October 2009 Rose Hall Corriverton Anna Regina

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

Deposits G$1.58 B G$631 M G$156 MTotal No. of Accounts held to date 6,977 1,555 683Accounts opened for Oct 09 113 99 233


Schedule of InvestmentsType Value GYDForeign

Bonds USD 25,732,391.62 5,249,407,890 Treasury Bills USD - - Equity USD 325,694.35 66,441,647 CDs/DCDs USD 2,000,000.00 408,000,000 Money Market A/cs USD 42,209,389.71 8,610,715,501

70,267,475.68 14,334,565,039

Bonds GBP 3,176,031.67 647,910,460 Treasury Bills GBP 355,528.33 72,527,780 Money Market A/cs GBP 215,778.92 44,018,899

3,747,338.92 764,457,139

Bonds EUR 1,330,477.63 271,417,438 T/Bills EUR - - Money Market A/cs EUR 14,396.24 2,936,832

1,344,873.87 274,354,270

Total Foreign Investments USD 75,359,688.47 15,373,376,447

Type Value GYDLocal

Bonds GYD 296,208,000Treasury Bills GYD 100,000,000Equity GYD 26,976,333

Total Local Investments GYD 423,184,333

Total Investments USD 77,624,377.30 15,796,560,780

Liquidity Analysis % GYDShort Term 58 9,204,640,659Long Term 42 6,591,920,121

100 15,796,560,780


Schedule of InvestmentsExposure USD GYD

Portfolio%

GOJ USD 5,551,797 1,132,566,511 7GOTT USD 906,504 184,926,828 1.2GOB USD 10,170,050 2,074,690,200 13.1GOSL USD 249,282 50,853,457 0.3GOTCI USD 340,242 69,409,335 0.4

17,217,874 3,512,446,331 21.8

Indian Banks -BondsBOB USD 2,223,765 453,648,060 2.9SBOI USD 2,792,929 569,757,522 3.6ICICI USD 3,445,075 702,795,300 4.4Canawara USD 341,875 69,742,500 0.4BOI USD 1,244,000 253,776,000 1.6Banco do Brazil USD 308,550 62,944,200 0.002

10,047,644 2,049,719,382 13.0UK BanksHSBC Bond GBP 2,104,941 428,355,460 2.7Barclays Bond GBP 298,958 60,838,021 0.4


Staff MovesResignations/Terminations Four(4) New Staff – None

Marvin Nunes –Cashier

Stephan Muridall – Studies

Surajpaul Shivraj- New Staff

Edward Gomes – New Staff


Branch ExpansionDiamond Branch

Phase OneConstruction at Diamond has progressed at a reduced pace. Works from Phase One are still to be completed includingthe casting of the main floor as well as finishing off the main access bridge. This is estimated to take approximately two weeks. Phase TwoBK International has submitted a bid of G$48Mln which is about G$8Mln above what our consultants have estimated. Discussions are ongoing to reach a mutual agreement. The Contractor has suspended all works on site until the contract price for Phase Two has been finalised. Some of the works for Phase Two have commenced including the casting of columns We believe that with a concerted effort and proper co-ordination for various tasks, the building still can be completed by June 2010.


eServices

First Facts 73 Companies 166 Accounts

Telebanking 285 Users

eBanking 1,618 Users

These services are all offered free.


ATM/Point of Sale

Location Value (G$)Amount of Transactions

ATM Debits

Camp Street 86,084,500 7,599Guyoil, Regent St 36,014,000 3,262

City Mall 17,963,500 1,578

Diamond 30,511,000 2,330

POS Debits 1,738,562 162

ATM Credits

Camp Street 17,979,073 750

TOTAL 190,290,635 15,681


Global ScenarioThere has been a discernable improvement in the global economy since the last review in July 2009. The recovery is underpinned by output expansion in emerging market economies, particularly in Asia.

World output improved in the second quarter, manufacturing activity has picked up, trade is recovering, financial market conditions are improving, and risk appetite is returning. A sharp recovery in equity markets has enabled banks to raise capital to repair their balance sheets. There are concerns, however, that the recovery is fragile. Even as output is reviving, unemployment is expected to increase to over 13% in the US. Investment is also expected to remain weak due to ruptured balance sheets, excess capacity and financing constraints.

Bank collapses are continuing. World trade still remains below its level a year ago. On balance, while global economic prospects have improved, uncertainties remain about the pace and sustainability of economic recovery.


Guyana ScenarioThe Guyana economy grew at a rate of 1.2% during the first half year of 2009. The total GDP growth for the period is estimated at around 2.5%.

The interest rates in Guyana are likely to remain on the low side for an extended period in view of the easy liquidity and low credit-deposit ratio of the banks.

The economy has slowed down considerably on account of high inflation, lower remittances from abroad and unemployment and continued migration of skilled employees/workers.


Performance Budget

DEMERARA BANK LIMITED

PERFORMANCE BUDGET FOR THE YEAR 2009/2010

1 TOTAL BRANCHES: FOUR GEORGETOWN, GUYANA

ROSEHALL, BERBICE

CORRIVERTON, BERBICE

ANNA REGINA, ESSEQUIBO

2 SAFE DEPOSIT BOX: YES ( CAMP STREET)

3 NAMES OF SOFTWARE : ROYAL INTEGRATED BANKING SYSTEM

4 A BRIEF NOTE ENCLOSED

on the economic environment


RESOURCES (Last Year) (Current Year) PROJECTIONS (01.10.2009 TO 30.09.2010) 30.09.2008 30.09.2009 Dec, 2009 Mar, 2010 June, 2010 Sept, 2010

1.1 Customer Deposits 21,192,319 24,893,182 25,358,031 25,888,150 26,511,409 27,662,0871.2 Inter Bank Deposits - - 1.3 Total Deposits (1.1 to 1.3) 21,192,319 24,893,182 25,358,031 25,888,150 26,511,409 27,662,087

of which Demand Deposits 1,783,592 2,037,763 2,261,917 2,465,489 2,662,729 2,929,001Savings Deposits 6,640,425 8,816,124 9,618,391 10,484,046 11,427,611 12,684,648Term Deposits 12,768,302 14,039,295 13,477,723 12,938,614 12,421,070 12,048,438Other Deposits - - - - - -

(Total to agree with 1.3) 21,192,319 24,893,182 25,358,031 25,888,150 26,511,409 27,662,0871.4 Borrowings from Banks - - 1.5 Own Funds 2,628,847 3,609,633 3,681,826 3,865,917 4,136,531 4,550,1841.6 Other Resources 1,317,642 1,371,126 1,398,549 1,468,476 1,571,269 1,728,3961.7 Total (1.4 to 1.6) 3,946,489 4,980,759 5,080,374 5,334,393 5,707,800 6,278,580 TOTAL RESOURCES (1.3 to 1.7) 25,138,808 29,873,941 30,438,406 31,222,543 32,219,209 33,940,667 ACTUALS Projected 30.09.2008 30.09.2009 Sept, 2010 Avg rate of Interest paid on (%) (Current Year) (Current Year) 1a)Customer Deposits 3.98 3.95 4.00 b) Inter Bank Deposits And 30.09.2008 30.09.2009 Sept, 2008 2a)Current 2.25 2.00 2.00 b)Savings 3.75 3.50 2.75


DEPLOYMENT (Last Year) (Current Year) PROJECTIONS (01.10.2009 to 30.09.2010)

30.09.2008 30.09.2009 Dec, 2009 Mar, 2010 June, 2010 Sept, 2010

2.1 Customer Advances 6,727,516 8,707,992 9,578,791 10,632,458 11,270,406 11,996,630

2.2 Funded Loan Participation with other Banks

2.3 Total Advances (2.1 to 2.2) 6,727,516 8,707,992 9,578,791 10,632,458 11,270,406 11,996,630

2.4 Inter Bank Placements - -

2.5 Investments 6,807,652 7,271,356 7,873,442 8,700,651 9,587,142 10,278,037

2.6 Cash - -

2.7 Balances w/Central Bank & other Banks 11,199,446 13,406,879 12,200,260 11,346,242 10,778,930 9,996,615

2.8 Other Deployment (please specify) 404,194 487,714 785,912 543,192 582,732 1,669,385

2.9Total (2.6 to 2.8) 11,603,640 13,894,593 12,986,172 11,889,434 11,361,661 11,666,000

TOTAL DEPLOYMENT (2.3+2.4+2.9) 25,138,808 29,873,941 30,438,406 31,222,543 32,219,209 33,940,667

PROJECTION

30.09.2008 30.09.2009 30.9.2010 Int earned on Customer/Inter Bank Adv/Inv

(Current Year) (Current Year) 9,578,791

Average rate of Interest earned on (%) Avg Customer/Inter Bank Advances/Investments

1 a) Customer Advances (2.1+2.2) 11 11 11

b) Inter Bank Placements (2.4) 4 4 4

c) Investments 8 6 8


STAFFPosition Position Additional requirement Expected2008-09 2009-09 CATEGORY for budget year Position

2008/2009 2010-09

9 9 1. Management Staff 1 10

17 21 2. Supervisors 3 24

40 46 3. Clerks 7 53

32 34 4. Security and others 3 37

98 110 5. TOTAL (1+2+3+4) 14 124

STAFF RATIOS Projections for 2009 / 2010

286 302 6. Average business per employee 324

7.14 7.43 7. Average Net Surplus per employee 7.75

19.37 17.05 8. Percentage of establishment expense to total expense 17.05


CAPITAL EXPENDITURE PLAN

AMOUNT EXPENDED ESTIMATES(Millions)

2007 to 2008 2009 to 2010 PARTICULARS Oct,2009 to Sept,2010

18 75 2.1 Premises (Total) of which 260

16 75 2.1.1 Structural 25

2 Renovation/Removal

- - 2.1.2 Safe Deposit

17 2.2 Furniture & Fixtures, Computers & ATMS 20

11 1 2.3 Office Equipments (total) of which 20

9 2.3.1 Computers Upgrades -

2 1 2.3.2 Other equipments/calculators 5

32 - 2.4 Vehicles 10

2 3 2.5 Air Condition/Water Coolers,etc. 5

1 2.6 Other (item-wise list to be provided separately) 5

62 87 2.7 TOTAL CAPITAL EXPENDITURE 320


Annexed to Capital Expenditure Plan

Particulars Estimates Details

(01.10.2009 to 30.09.2010)

2.1 Premises (Total) of which 225

Renovation

2.1.2Safe Deposit Vault 35 Installation of safe-vault at Diamond

2.2 Furniture & Fittings 20 Furniture & Fitting at Diamond

2.3 Computers/ATMS 15 New Computers/ ATM at Diamond

2.4 Office Equipment (Total of which) 5 Office Equipment

2.5 Vehicles 10 New Vehicles

2.6 Air Condition / Water Coolers 5 For Diamond

2.7 Others 5 For New Branch

2.8 TOTAL CAPITAL EXPENDITURE 320


EARNINGS, EXPENSES & PROFIT PLAN ACTUALS PROJECTIIONSPARTICULAR Oct07 - Sep08 Oct08-Sep09 Oct09 - Sep10A) EARNINGS 7.1 Interest & Discount 1,600,806 1,960,304 2,303,490earned (Total) of which on a) Customer Advances 810,456 943,099 1,084,564b) Interbank Placements c) Investments 769,862 792,205 1,218,926d) OtherIncome 20,488 225,000 7.2 Commission & Exchange 444,414 402,958 463,402 earned (Total) of which on Purchased/Discounted

DD/MT/TT issued 20,279 22,689 26,092 Bills collected 2,098 2,195 2,524 LC's 4,019 841 967 Guarantees 12,087 27,299 31,394 Safe Deposit Lockers 2,695 2,789 3,207 Exchange earnings 354,320 299,440 344,356 Other Commissions 48,916 47,705 54,861

TOTAL 2,045,220 2,363,262 2,766,892


EARNINGS, EXPENSES & PROFIT PLAN ACTUALS PROJECTIONSPARTICULARS Oct07 - Sep08 Oct08-Sep09 Oct09 - Sep107.3 Other Income (please specify) 7.4 TOTAL OPERATING 2,045,220 2,363,262 2,766,892INCOME B) EXPENSES 7.5 Direct expenses 7.5.A Interest paid on customers 783,586 910,262 1,046,801

Deposits Current Deposits & others 7,305 6,713 7,720 Savings Deposits 168,751 218,027 350,731 Time Deposits 607,530 685,522 688,350

7.5.B Interest paid on Deposits - From Banks From others 7.5.C Staff expenses (total) 224,400 233,747 257,122 1,037,234 1,219,253 1,462,969


EARNINGS, EXPENSES & PROFIT PLAN

ACTUALS PROJECTIONS

PARTICULARS Oct07 - Sep08 Oct08-Sep09 Oct09 - Sep107.6 OVERHEADS Rent, Taxes and Lighting 31,488 24,079 31,303Postage, Telegrams, 1,158 2,364 3,073Telephone, Telex, etc 9,465 12,051 15,666Repairs and Maintenance 10,308 7,559 9,827Licence etc 2,468 4,695 6,573Travelling Expenses 6,332 7,254 9,430Insurances 2,946 6,148 7,992Printing and Stationery 9,521 11,426 14,854Advertisement and Publicity 10,100 6,004 7,805Depreciation 21,513 30,192 39,250Law Charges 2,775 4,300 5,590Other Exp. 8,110 55,566 72,2367.7 TOTAL OPERATING EXP. 116,184 171,638 223,599


EARNINGS, EXPENSES & PROFIT PLAN

ACTUALS PROJECTIONS

PARTICULARS Oct07 - Sep08 Oct08-Sep09 Oct09 - Sep107.8 GROSS OPERATING 921,050 1,047,615 1,239,370 SURPLUS/DEFICIT 7.10 PROVISION FOR DOUBTFUL DEBTS & OTHERS 7.11 BAD DEBTS WRITTEN OFF 7.12 OTH PROV TAXATION 171,460 229,344 277,8607.13 NET PROFIT 749,590 818,271 961,510 7.14 TFER TO STATUTORY RESERVE 104,257- -7.15 SURPLUS 645,333- -7.16 DIVIDENDS PAYABLE 193,500 202,500 225,000 7.17 SURPLUS RETAINED 451,833 615,771 736,510


Interest Income Interest Inc (Adv) Interest Inc (Inv)

Total Interest Income Interest Expense Net Interest income

08-09 09-10 08-09 09-10 08-09 09-10 08-09 09-10 08-09 09-10

Oct 73,830 78,956 72,221 58,921 146,050 137,878 74,896 80,733 71,154 57,145

Nov 71,539 118,655 61,471 85,233 133,010 203,888 71,542 77,844 61,468 126,044

Dec 75,432 - 68,150 - 143,581 - 74,828 - 68,753 -

Jan 85,947 - 72,545 - 158,492 - 82,230 - 76,262 -

Feb 73,368 - 60,519 - 133,887 - 70,229 - 63,657 -

Mar 72,314 - 95,177 - 167,492 - 75,556 - 91,936 -

Apr 74,796 - 72,498 - 147,294 - 75,826 - 71,468 -

May 77,426 - 74,797 - 152,223 - 75,911 - 76,312 -

Jun 68,271 - 73,940 - 142,211 - 73,184 - 69,028 -

Jul 101,175 - 62,496 - 163,671 - 79,696 - 83,975 -

Aug 77,151 - 64,266 - 141,417 - 78,943 - 62,473 -

Sep 92,034 - 114,591 - 206,625 - 170,093 - 36,532 -

Tot 1,168,282 197,611 892,671 144,154 2,060,954 341,766 1,002,933 158,577 1,058,021 183,189

Avg 97,357 98,806 74,389 72,077 171,746 170,883 83,578 79,289 88,168 91,594


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

08-09 09-10 08-09 09-10 08-09 09-10 08-09 09-10 08-09 09-10

Oct 10.93% 10.34% 7.67% 4.49% 3.94% 3.83% 6.99% 6.51% 3.73% 0.66%

Nov 10.72% 15.46% 5.36% 6.39% 3.76% 3.57% 6.96% 11.89% 1.60% 2.82%

Dec 10.89% - 5.61% - 3.82% - 7.07% - 1.79% -

Jan 12.57% - 6.23% - 4.21% - 8.36% - 2.02% -

Feb 10.66% - 5.70% - 3.65% - 7.01% - 2.05% -

Mar 10.38% - 7.41% - 3.83% - 6.54% - 3.58% -

Apr 10.56% - 5.96% - 3.91% - 6.65% - 2.05% -

May 10.53% - 5.98% - 3.97% - 6.56% - 2.02% -

Jun 9.36% - 5.84% - 3.67% - 5.68% - 2.16% -

Jul 13.51% - 4.87% - 3.98% - 9.53% - 0.90% -

Aug 10.61% - 4.89% - 3.84% - 6.76% - 1.04% -

Sep 12.07% - 8.77% - 8.20% - 3.87% - 0.57% -

Tot 162.27% 25.80% 74.28% 10.88% 50.78% 7.40% 111.49% 18.40% 23.50% 3.47%

Avg 13.52% 12.90% 6.19% 5.44% 4.23% 3.70% 9.29% 9.20% 1.96% 1.74%


Exch Gain & Commissions

Exchange Comm & Other Income

08-09 09-10 08-09 09-10

Oct 31,783 -4,706 10,991 965

Nov 16,122 50,603 5,206 6,356

Dec 32,550 - 7,210 -

Jan 1,810 - 7,274 -

Feb 29,781 - 8,544 -

Mar (29,248) - 6,862 -

Apr 19,596 - 6,477 -

May 27,492 - 8,507 -

Jun 18,345 - 7,819 -

Jul 30,692 - 9,407 -

Aug 54,114 - 7,309 -

Sep 66,403 - 235,113 -

Tot 299,441 45,897 95,722 7,322

Avg 24,953 22,949 7,977 3,661


Balances Advances Investments Deposits

08-09 09-10 08-09 09-10 08-09 09-10

Oct 8,106 9,163 11,292 15,753 22,789 25,279

Nov 8,011 9,211 13,767 16,010 22,836 26,151

Dec 8,315 - 14,589 - 23,523 -

Jan 8,208 - 13,976 - 23,441 -

Feb 8,258 - 12,743 - 23,100 -

Mar 8,363 - 15,414 - 23,662 -

Apr 8,497 - 14,593 - 23,245 -

May 8,823 - 15,003 - 22,967 -

Jun 8,755 - 15,206 - 23,907 -

Jul 8,987 - 15,390 - 24,048 -

Aug 8,730 - 15,785 - 24,641 -

Sep 9,153 - 15,683 - 24,896 -

Tot 102,204 18,373 173,440 31,764 283,055 51,431

Avg 8,517 9,187 14,453 15,882 23,588 25,715


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

08-09 09-10 08-09 Provision 0-Jan Provision 08-09 09-10 08-09 09-10

Oct (13,421) 244 10,214 - 7,738 - 4,256 3,769 112,879 41,653

Nov 52,846 54,123 8,476 - 13,667 - 3,811 3,874 17,664 111,341

Dec 16,632 - 13,026 - - - 3,583 - 75,273 -

Jan 15,940 - 14,889 - - - 4,295 - 50,223 -

Feb 14,865 - 5,671 - - - 2,970 - 78,477 -

Mar 16,043 - 9,495 - - - 4,254 - 39,758 -

Apr 16,553 - 8,684 - - - 3,034 - 69,271 -

May 17,492 - 7,015 - - - 3,165 - 84,640 -

Jun 19,359 - 16,103 - - - 4,307 - 55,423 -

Jul 23,188 - 4,051 - - - 3,962 - 92,873 -

Aug 17,047 - 6,858 - - - 4,378 - 95,614 -

Sep 36,834 - 18,996 - - - 6,517 - 275,700 -

Tot 233,378 54,367 123,479 - 21,404 - 48,531 7,643 1,047,796 152,993

Avg 19,448 27,183 10,290- 10,702 4,044 3,822 87,316 76,497


Chief Executive Officer

Demerara bank limited Chief Executive Officer Report for Months of October 2009.

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Transcript of Demerara bank limited Chief Executive Officer Report for Months of October 2009.