demerara bank limited Chief Executive Officer Report for Months of October 2009

Deposits demerara bank limited Oct 2009Oct 2008% Inc Savings8,995,7306,860,06032% Demand2,106,6362,312,412(9%) Term13,818,74113,257,4725% Due to Banks365,976405,779(10%) TOTAL25,287,08322,835,72511% Profit for the month41,653112,879(63%) Cumulative Profit for the year41,653112,879-

Advances demerara bank limited Loan and overdraft applications in process –G$347,000,000. Loans approved but not disbursed -G$276,511,924 Oct 2009Oct 2008% Inc Term Loans4,755,8083,595,26933% Overdrafts4,415,7914,510,3062% Total fund based Advances9,171,5998,105,57514% Other Bonds Guarantees ( Non-fund based)2,015,0392,139,827(6%) TOTAL11,186,63810,245,402(10%) Average Yield on Advances (% p.a.)10.34%10.9%- Non-Performing Assets575,881722,991(21%) Provisions for NPAs490,216715,438(32%) Recovery during month4,2002,44672%

Investments demerara bank limited Oct 2009Oct 2008% Inc Treasury Bills100,000 - Local Bonds & Other Investment227,666227, % Debenture of GOG96,208 - Overseas15,656,29613,343,10117% TOTAL16,080,37713,766, % Income on Investment58,92172,221(18.4%) Tax Free Income39,79160,612(34%) Total Tax free inc for the year (actual) % Yield on investment4.49%10.34%(57%)

Profitability demerara bank limited (GYD Millions)May 2009 Exchange Earnings18.3 Net Interest Income77 Interest Expense73 Yield on Advances10.47% Cost of Funds3.67% Average Advances8.76 Bln Investments15.2 Bln New Accounts625 Total Accounts44,292 (GYD Millions)May 2009 Amalgamated Operational Profit Main Branch72.3 Rose Hall(4.5) Corriverton(1.7) Anna Regina(2.4)

Inter Bank Dealings demerara bank limited October 2009 BorrowedLent G$3.83BG$400M Interest Paid:G$436,575:- Interest Received:G$43,836:-

Branch Deposits October 2009Rose HallCorrivertonAnna Regina Date of openingFeb. 4, 2004Aug. 4, 2008May 25, 2009 DepositsG$1.58 BG$631 MG$156 M Total No. of Accounts held to date6,9771, Accounts opened for Oct demerara bank limited

Schedule of Investments demerara bank limited Type ValueGYD Foreign BondsUSD25,732, ,249,407,890 Treasury BillsUSD-- EquityUSD 325, ,441,647 CDs/DCDsUSD2,000, ,000,000 Money Market A/csUSD42,209, ,610,715,501 70,267, ,334,565,039 BondsGBP3,176, ,910,460 Treasury BillsGBP 355, ,527,780 Money Market A/csGBP 215, ,018,899 3,747, ,457,139 BondsEUR1,330, ,417,438 T/BillsEUR-- Money Market A/csEUR 14, ,936,832 1,344, ,354,270 Total Foreign InvestmentsUSD75,359, ,373,376,447 Type ValueGYD Local BondsGYD 296,208,000 Treasury BillsGYD 100,000,000 EquityGYD 26,976,333 Total Local Investments GYD423,184,333 Total InvestmentsUSD77,624, ,796,560,780 Liquidity Analysis %GYD Short Term589,204,640,659 Long Term426,591,920, ,796,560,780

Schedule of Investments demerara bank limited Exposure USDGYD Portfolio % GOJUSD 5,551,797 1,132,566,5117 GOTTUSD906,504184,926, GOBUSD 10,170,050 2,074,690, GOSLUSD249,28250,853, GOTCIUSD340,24269,409, ,217,874 3,512,446, Indian Banks -Bonds BOBUSD 2,223,765453,648, SBOIUSD 2,792,929569,757, ICICIUSD 3,445,075702,795, CanawaraUSD341,87569,742, BOIUSD 1,244,000253,776, Banco do BrazilUSD308,55062,944, ,047,644 2,049,719, UK Banks HSBC BondGBP 2,104,941428,355, Barclays BondGBP298,95860,838,0210.4

Foreign Currency demerara bank limited PurchasesUSD18.55Million SalesUSD16.37Million Average SpreadGYD 0.89 Trading ProfitGYD15Million Market Share21%

Staff Moves demerara bank limited Resignations/Terminations Four(4) New Staff – None Marvin Nunes –Cashier Stephan Muridall – Studies Surajpaul Shivraj- New Staff Edward Gomes – New Staff

Branch Expansion demerara bank limited Diamond Branch Phase One Construction 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 Two BK 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 demerara bank limited First Facts73 Companies166 Accounts Telebanking285 Users eBanking1,618 Users These services are all offered free.

ATM/Point of Sale demerara bank limited LocationValue (G$) Amount of Transactions ATM Debits Camp Street86,084,5007,599 Guyoil, Regent St36,014,0003,262 City Mall17,963,5001,578 Diamond30,511,0002,330 POS Debits1,738, ATM Credits Camp Street17,979, TOTAL190,290,63515,681

Global Scenario demerara bank limited There has been a discernable improvement in the global economy since the last review in July 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 Scenario demerara bank limited The Guyana economy grew at a rate of 1.2% during the first half year of 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 DEMERARA BANK LIMITED PERFORMANCE BUDGET FOR THE YEAR 2009/ TOTAL BRANCHES: FOURGEORGETOWN, 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 NOTEENCLOSED on the economic environment

demerara bank limited RESOURCES(Last Year) (Current Year)PROJECTIONS ( TO ) Dec, 2009Mar, 2010June, 2010Sept, Customer Deposits21,192,31924,893,18225,358,03125,888,15026,511,40927,662, Inter Bank Deposits Total Deposits (1.1 to 1.3)21,192,31924,893,18225,358,03125,888,15026,511,40927,662,087 of which Demand Deposits1,783,5922,037,7632,261,9172,465,4892,662,7292,929,001 Savings Deposits6,640,4258,816,1249,618,39110,484,04611,427,61112,684,648 Term Deposits12,768,30214,039,29513,477,72312,938,61412,421,07012,048,438 Other Deposits (Total to agree with 1.3)21,192,31924,893,18225,358,03125,888,15026,511,40927,662, Borrowings from Banks Own Funds2,628,8473,609,6333,681,8263,865,9174,136,5314,550, Other Resources1,317,6421,371,1261,398,5491,468,4761,571,2691,728, Total (1.4 to 1.6)3,946,4894,980,7595,080,3745,334,3935,707,8006,278,580 TOTAL RESOURCES (1.3 to 1.7)25,138,80829,873,94130,438,40631,222,54332,219,20933,940,667 ACTUALS Projected Sept, 2010 Avg rate of Interest paid on (%)(Current Year) 1a)Customer Deposits b) Inter Bank Deposits And Sept, a)Current b)Savings

demerara bank limited DEPLOYMENT(Last Year)(Current Year)PROJECTIONS ( to ) Dec, 2009Mar, 2010June, 2010Sept, Customer Advances6,727,5168,707,9929,578,79110,632,45811,270,40611,996, Funded Loan Participation with other Banks 2.3 Total Advances (2.1 to 2.2)6,727,5168,707,9929,578,79110,632,45811,270,40611,996, Inter Bank Placements Investments6,807,6527,271,3567,873,4428,700,6519,587,14210,278, Cash Balances w/Central Bank & other Banks11,199,44613,406,87912,200,26011,346,24210,778,9309,996, Other Deployment (please specify)404,194487,714785,912543,192582,7321,669, Total (2.6 to 2.8)11,603,64013,894,59312,986,17211,889,43411,361,66111,666,000 TOTAL DEPLOYMENT ( )25,138,80829,873,94130,438,40631,222,54332,219,20933,940,667 PROJECTION Int earned on Customer/Inter Bank Adv/Inv (Current Year) 9,578,791 Average rate of Interest earned on (%) Avg Customer/Inter Bank Advances/Investments 1 a) Customer Advances ( )11 b) Inter Bank Placements (2.4)444 c) Investments868

demerara bank limited

STAFF Position Additional requirementExpected CATEGORYfor budget yearPosition 2008/ Management Staff Supervisors Clerks Security and others TOTAL ( )14124 STAFF RATIOSProjections for 2009 / Average business per employee Average Net Surplus per employee Percentage of establishment expense to total expense17.05

demerara bank limited CAPITAL EXPENDITURE PLAN AMOUNT EXPENDED ESTIMATES(Millions) 2007 to to 2010PARTICULARSOct,2009 to Sept, Premises (Total) of which Structural25 2 Renovation/Removal Safe Deposit Furniture & Fixtures, Computers & ATMS Office Equipments (total) of which Computers Upgrades Other equipments/calculators Vehicles Air Condition/Water Coolers,etc Other (item-wise list to be provided separately) TOTAL CAPITAL EXPENDITURE320

demerara bank limited Annexed to Capital Expenditure Plan ParticularsEstimatesDetails ( to ) 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

demerara bank limited EARNINGS, EXPENSES & PROFIT PLAN ACTUALSPROJECTIIONS PARTICULAROct07 - Sep08Oct08-Sep09Oct09 - Sep10 A) EARNINGS 7.1 Interest & Discount1,600,8061,960,3042,303,490 earned (Total) of which on a) Customer Advances810,456943,0991,084,564 b) Interbank Placements c) Investments769,862792,2051,218,926 d) OtherIncome20,488225, Commission & Exchange444,414402,958463,402 earned (Total) of which on Purchased/Discounted DD/MT/TT issued20,27922,68926,092 Bills collected2,0982,1952,524 LC's4, Guarantees12,08727,29931,394 Safe Deposit Lockers2,6952,7893,207 Exchange earnings354,320299,440344,356 Other Commissions48,91647,70554,861 TOTAL2,045,2202,363,2622,766,892

demerara bank limited EARNINGS, EXPENSES & PROFIT PLAN ACTUALSPROJECTIONS PARTICULARSOct07 - Sep08Oct08-Sep09Oct09 - Sep Other Income (please specify) 7.4 TOTAL OPERATING2,045,2202,363,2622,766,892 INCOME B) EXPENSES 7.5 Direct expenses 7.5.A Interest paid on customers783,586910,2621,046,801 Deposits Current Deposits & others7,3056,7137,720 Savings Deposits168,751218,027350,731 Time Deposits607,530685,522688, B Interest paid on Deposits- From Banks From others 7.5.C Staff expenses (total)224,400233,747257,122 1,037,2341,219,2531,462,969

demerara bank limited

EARNINGS, EXPENSES & PROFIT PLAN ACTUALS PROJECTIONS PARTICULARSOct07 - Sep08Oct08-Sep09Oct09 - Sep OVERHEADS Rent, Taxes and Lighting31,48824,07931,303 Postage, Telegrams,1,1582,3643,073 Telephone, Telex, etc9,46512,05115,666 Repairs and Maintenance10,3087,5599,827 Licence etc2,4684,6956,573 Travelling Expenses6,3327,2549,430 Insurances2,9466,1487,992 Printing and Stationery9,52111,42614,854 Advertisement and Publicity10,1006,0047,805 Depreciation21,51330,19239,250 Law Charges2,7754,3005,590 Other Exp.8,11055,56672, TOTAL OPERATING EXP.116,184171,638223,599

demerara bank limited EARNINGS, EXPENSES & PROFIT PLAN ACTUALS PROJECTIONS PARTICULARSOct07 - Sep08Oct08-Sep09Oct09 - Sep GROSS OPERATING921,0501,047,6151,239,370 SURPLUS/DEFICIT 7.10 PROVISION FOR DOUBTFUL DEBTS & OTHERS 7.11 BAD DEBTS WRITTEN OFF 7.12 OTH PROV TAXATION171,460229,344277, NET PROFIT749,590818,271961, TFER TO STATUTORY RESERVE104, SURPLUS645, DIVIDENDS PAYABLE193,500202,500225, SURPLUS RETAINED451,833615,771736,510

demerara bank limited

Interest Income demerara bank limited Interest Inc (Adv)Interest Inc (Inv) Total Interest IncomeInterest ExpenseNet Interest income Oct73,83078,95672,22158,921146,050137,87874,89680,73371,15457,145 Nov71,539118,65561,47185,233133,010203,88871,54277,84461,468126,044 Dec75,432-68, ,581-74,828-68,753- Jan85,947-72, ,492-82,230-76,262- Feb73,368-60, ,887-70,229-63,657- Mar72,314-95, ,492-75,556-91,936- Apr74,796-72, ,294-75,826-71,468- May77,426-74, ,223-75,911-76,312- Jun68,271-73, ,211-73,184-69,028- Jul101,175-62, ,671-79,696-83,975- Aug77,151-64, ,417-78,943-62,473- Sep92, , , ,093-36,532- Tot1,168,282197,611892,671144,1542,060,954341,7661,002,933158,5771,058,021183,189 Avg97,35798,80674,38972,077171,746170,88383,57879,28988,16891,594

Interest Spread demerara bank limited Avg Interest (Adv)Avg Interest (Inv)Avg Interest ExpAvg Spread (Adv)Avg Spread (Inv) Oct10.93%10.34%7.67%4.49%3.94%3.83%6.99%6.51%3.73%0.66% Nov10.72%15.46%5.36%6.39%3.76%3.57%6.96%11.89%1.60%2.82% Dec10.89%-5.61%-3.82%-7.07%-1.79%- Jan12.57%-6.23%-4.21%-8.36%-2.02%- Feb10.66%-5.70%-3.65%-7.01%-2.05%- Mar10.38%-7.41%-3.83%-6.54%-3.58%- Apr10.56%-5.96%-3.91%-6.65%-2.05%- May10.53%-5.98%-3.97%-6.56%-2.02%- Jun9.36%-5.84%-3.67%-5.68%-2.16%- Jul13.51%-4.87%-3.98%-9.53%-0.90%- Aug10.61%-4.89%-3.84%-6.76%-1.04%- Sep12.07%-8.77%-8.20%-3.87%-0.57%- Tot162.27%25.80%74.28%10.88%50.78%7.40%111.49%18.40%23.50%3.47% Avg13.52%12.90%6.19%5.44%4.23%3.70%9.29%9.20%1.96%1.74%

Exch Gain & Commissions demerara bank limited ExchangeComm & Other Income Oct31,783-4,70610, Nov16,12250,6035,2066,356 Dec32,550-7,210- Jan1,810-7,274- Feb29,781-8,544- Mar(29,248)-6,862- Apr19,596-6,477- May27,492-8,507- Jun18,345-7,819- Jul30,692-9,407- Aug54,114-7,309- Sep66, ,113- Tot299,44145,89795,7227,322 Avg24,95322,9497,9773,661

Balances demerara bank limited AdvancesInvestmentsDeposits Oct8,1069,16311,29215,75322,78925,279 Nov8,0119,21113,76716,01022,83626,151 Dec8,315-14,589-23,523- Jan8,208-13,976-23,441- Feb8,258-12,743-23,100- Mar8,363-15,414-23,662- Apr8,497-14,593-23,245- May8,823-15,003-22,967- Jun8,755-15,206-23,907- Jul8,987-15,390-24,048- Aug8,730-15,785-24,641- Sep9,153-15,683-24,896- Tot102,20418,373173,44031,764283,05551,431 Avg8,5179,18714,45315,88223,58825,715

Admin Expenses demerara bank limited Staff CostsAdministration CostsPrem & Vehicle ExpNet Profit Provision0-JanProvision Oct(13,421)24410,214-7,738-4,2563,769112,87941,653 Nov52,84654,1238,476-13,667-3,8113,87417,664111,341 Dec16,632-13, ,583-75,273- Jan15,940-14, ,295-50,223- Feb14,865-5, ,970-78,477- Mar16,043-9, ,254-39,758- Apr16,553-8, ,034-69,271- May17,492-7, ,165-84,640- Jun19,359-16, ,307-55,423- Jul23,188-4, ,962-92,873- Aug17,047-6, ,378-95,614- Sep36,834-18, , ,700- Tot233,37854,367123,479-21,404-48,5317,6431,047,796152,993 Avg19,44827,18310,290-10,702 4,0443,82287,31676,497

demerara bank limited Chief Executive Officer