demerara bank limited Chief Executive Officer Report for Month of August 2011

Deposits demerara bank limited Deposits (G$‘000) Aug 2011Aug 2010% Inc Savings17,126,44711,942,11444% Demand4,116,7652,157,33891% Term9,887,25015,941,661(38%) TOTAL31,130,46130,041,1144% Profit for the month106,68674,62743% Cumulative Profit for the year1,375,872819,08168%

Advances demerara bank limited Loan and overdraft applications in process –G$59,000,000 Loans approved but not disbursed –G$1,007,710,566 Advances (G$‘000) Aug 2011Aug 2010% Inc Term Loans6,907,9744,640,40949% Overdrafts4,765,1395,783,824(18%) Total fund based Advances11,673,11310,424,23312% Other BondsGuarantees ( Non-fund based) 1,204,3972,378,854(50%) Average Yield on Advances (% p.a.)12,877,51012,803,0871% Non-Performing Assets272,151299,611(10%) Provisions for NPAs268,422490,216(46%) Recovery during month2,394200

Investments demerara bank limited Investment (G$‘000) Aug 2011Aug 2010% Inc Treasury Bills100,000500,000(80%) Local Bonds & Other Investment226,976 - Overseas18,458,95917,417,7046% TOTAL18,785,93518,144,6804% Income on Investment94,56472,60830% Tax Free Income41,33029,90038% Total Tax free income for the current financial year (actual)11 mths + low income GL a/c # ,446432,4651% Yield on investment6.86%4.9%

Profitability demerara bank limited (GYD Millions)Aug 2011 Exchange Earnings13.9 Net Interest Income127 Interest Expense57 Yield on Advances10.18% Cost of Funds2.20% Average Advances11.9Bln Investments14.5 Bln New Accounts282 Total Accounts59,724 (GYD Millions)Aug 2011 Amalgamated Operational Profit Main Branch Rose Hall(10.13) Corriverton(5.2) Anna Regina(2.5) Diamond(6.15)

Foreign Currency demerara bank limited PurchasesUSD14.6Million SalesUSD20.4Million Average SpreadGYD 0.85 Trading ProfitGYD17.3Million

Branch Deposits demerara bank limited Rose HallCorriverton Anna Regina Diamond Date of openingFeb. 4, 2004Aug. 4, 2008May 25, 2009Feb. 28, 2011 DepositsG$3.3BG$1.7 BG$947MG$165M Total No. of Accounts held to date 9,0053,6553, Accounts opened Profit/Loss(G$10.13M)(G$5.2M)(G$2.5M)(G$6.15M) Cost of Fund2.92%2.57%1.76%0.39% Non-interest ExpensesG$31.1MG$27.14MG$19.9MG$22.68M

Staff Moves demerara bank limited Resignations/Terminations– nilNew Staff – One(1) Amelia Sookhdeo – Savings/DDA

Inter Bank Dealings demerara bank limited July 2011 BorrowedLent -800 million Interest Paid:- Interest Received:98, There was no interbank trading for the month of July

Schedule of Investments demerara bank limited BondsUSD 50,730, ,349,070,864 Treasury BillsUSD - - EquityUSD 325, ,441,647 CDs/DCDsUSD 8,000, ,632,000,000 Money Market A/csUSD 22,888, ,669,161,425 81,944, ,716,673,936 BondsGBP 7,180, ,464,869,999 Treasury BillsGBP - - Money Market A/csGBP ,399 7,180, ,464,919,398 BondsEUR 1,354, ,352,301 T/BillsEUR - - Money Market A/csEUR4, ,479 1,359, ,333,779 Money Market A/csCAD , ,177 Total Foreign Investments USD 90,485, ,458,959,290 Type ValueGYD BondsGYD 200,000,000 Treasury BillsGYD 100,000,000 EquityGYD26,976,333 Total Local Investments GYD 326,976,333 Total InvestmentsUSD 92,087, ,785,935,623 Liquidity Analysis %GYD Short Term346,368,666,126 Long Term66 12,417,269, ,785,935,623

Schedule of Investments demerara bank limited USD GYD % of Portfolio Caribbean Exposure 25,847,6085,272,911, Indian Banks -Bonds 8,591,6251,752,691, Europe 9,730,5001,985,022, UK Banks 7,716,9851,574,264, Brazil 5,591,4251,140,650, USA 1,788, ,752,

Year End Audit demerara bank limited 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 demerara bank limited First Facts74 Companies168 Accounts Telebanking288 Users eBanking2,204 Users These services are all offered free.

ATM/Point of Sale demerara bank limited LocationValue (G$)Transactions ATM Debits Camp Street115,307,5009,882 City Mall54,592,5005,118 DDL Diamond20,938,5001,768 Diamond Branch35,815,0002,963 Rose Hall11,689,5001,097 Corriverton7,754, Anna Regina7,760, Charity911,50054 POS Debits989, TOTAL247,998,91222,323 ATM Credits Camp Street7,489,358335

Le Ressouvenir Branch demerara bank limited 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 demerara bank limited 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 demerara bank limited 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 demerara bank limited 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 demerara bank limited AdvancesInvestmentsDeposits Oct9,16310,44315,73710,21624,91328,577 Nov9,20710,99916,01010,88725,78529,394 Dec9,28611,05716,02811,35927,88029,114 Jan9,03510,89117,96712,01628,01027,985 Feb10,00410,87116,43012,30328,70228,733 Mar9,85411,20316,81011,42928,73928,850 Apr10,06311,58718,25911,32130,09329,391 May9,96011,50018,73713,58330,59331,404 Jun9,94611,55618,93013,53830,26432,803 Jul10,39711,60618,68314,02329,63932,152 Aug10,91211,94218,14514,53130,04231,130 Sep10,122-17,189-28,536- Tot117,948123,653208,927135,207343,196329,534 Avg9,82911,24117,41112,29228,60029,958

Interest Spread demerara bank limited Avg Interest (Adv)Avg Interest (Inv)Avg Interest ExpAvg Spread (Adv)Avg Spread (Inv) Oct10.34%10.35%4.49%8.57%3.89%3.25%6.45%7.10%0.60%5.32% Nov15.41%9.93%6.39%8.87%3.62%3.02%11.79%6.91%2.77%5.85% Dec10.62%10.45%6.59%8.33%3.57%2.82%7.05%7.63%3.03%5.51% Jan11.38%13.43%3.99%8.60%3.76%2.46%7.62%10.96%0.23%6.14% Feb9.08%9.98%2.64%7.76%3.38%2.42%5.70%7.56%0.74%5.34% Mar10.57%10.62%6.06%6.25%3.61%2.44%6.96%8.19%2.45%3.82% Apr10.27%10.48%5.13%8.46%3.38%2.40%6.89%8.08%1.75%6.06% May10.83%8.85%5.33%8.08%3.61%2.31%7.22%6.54%1.73%5.77% Jun10.59%8.95%5.12%8.55%3.27%2.06%7.31%6.89%1.85%6.49% Jul10.24%11.24%5.43%9.45%3.51%2.13%6.73%9.11%1.92%7.32% Aug10.18% 4.88%6.86%3.57%2.20%6.61%7.97%1.32%4.66% Sep12.66%-4.52%-3.31%-9.35%-1.21%- Tot132.17%114.45%60.58%89.79%42.48%27.51%89.69%86.94%18.11%62.28% Avg11.01%10.40%5.05%8.16%3.54%2.50%7.47%7.90%1.51%5.66%

Exch Gain & Commissions demerara bank limited ExchangeComm & Other Income Oct(17,698)14, ,177 Nov63,59519,6366,35615,063 Dec17,18327,5097,4775,458 Jan24,38317,8286,6182,776 Feb25,79519,7607,5286,191 Mar11,521(86,700)74,3697,961 Apr29,363128,56620,2607,925 May(31,564)16,4984,44236,292 Jun(3,831)11,981110,5428,977 Jul3,42742,38633,9278,331 Aug4,02313,91335,5648,594 Sep75, ,614- Tot201,569226,013747,662280,745 Avg16,79720,54762,30525,522

Balances demerara bank limited AdvancesInvestmentsDeposits Oct9,16310,44315,73710,21624,91328,577 Nov9,20710,99916,01010,88725,78529,394 Dec9,28611,05716,02811,35927,88029,114 Jan9,03510,89117,96712,01628,01027,985 Feb10,00410,87116,43012,30328,70228,733 Mar9,85411,20316,81011,42928,73928,850 Apr10,06311,58718,25911,32130,09329,391 May9,96011,50018,73713,58330,59331,404 Jun9,94611,55618,93013,53830,26432,803 Jul10,39711,60618,68314,02329,63932,152 Aug10,91211,94218,14514,53130,04231,130 Sep10,122-17,189-28,536- Tot117,948123,653208,927135,207343,196329,534 Avg9,82911,24117,41112,29228,60029,958

Admin Expenses demerara bank limited Staff CostsAdministration CostsPrem & Vehicle ExpNet Profit Provision0-JanProvision Oct244(4,214)7,738-12,341-3,7693,93828,662261,370 Nov54,12376,94113,666-9,393-3,8743,047123,94042,880 Dec18,67021,05414,723-14,001-3,6943,14574,928101,425 Jan19,34119,07211,006-11,968-3,4563,48154,787136,593 Feb15,85817,43413,405-9,904-3,4153,98731,736106,613 Mar18,63920,50712,575-12,891-3,6415,298136,348(17,278) Apr18,23820,31424,722-10,935-3,5193,87882,557223,628 May19,58720,5628,162-17,085-3,7944,72222,519126,305 Jun15,93920,7428,837-9,474-3,3604,273164,546112,803 Jul25,34525,6307,510-8,460-3,2013,88287,920174,847 Aug18,43720,44417,244-13,346-6,3099,25374,627106,686 Sep47,931-11, ,151- Tot272,353258,488150, ,798-42,50048,9021,215,7211,375,872 Avg22,69623,49912,570-11,800 3,5424,446101,310125,079

demerara bank limited Chief Executive Officer