2019-2020 Annual Report and Statement of Accounts

FINANCIAL RESULTS Statement of Financial Position As at 31 March 2020, the Bank’s Total Assets stood at $5,376.7 million, an increase of $215.9 million (4.2 per cent) when compared to the position in the previous year. The increase in Total Assets, predominantly reflected in the Foreign Assets category was due to an expansion of $156.2 million (3.2 per cent) in foreign reserves. The growth in foreign assets was mainly attributable to the purchase of foreign and regional currency notes from commercial banks, an appreciation in the market value of foreign investment securities and the reinvestment of interest received on foreign investments. The rise in foreign assets was partially offset by the net sale of foreign currency balances to commercial banks in the Eastern Caribbean Currency Union. Domestic Assets rose by $59.7 million (19.0 per cent), primarily due to increases in Participating Government Securities, Accounts Receivable and Prepaid Expenses, Property and Equipment and Right-of-use Assets. Participating Governments’ Securities increased by $27.1 million (45.03 per cent) mainly due to the Government of Dominica issuance of a $30.0 million bond to the ECCB, moderated by principal payments on bonds. Accounts Receivable and Prepaid Expenses increased predominantly due to increase in prepaid currency costs as the Bank launched and issued a new family of polymer notes during the year. Property and Equipment increased due to the implementation of Phase 1 of the ECCB Solar Canopy Project and the acquisition of other fixed assets. The implementation of Phase 1 of the Solar Canopy falls under the Bank’s strategic priority of enhancing organisational effectiveness through its greening of the Campus initiative. Additionally, the adoption of the new accounting standard, IFRS 16, Leases, effective 1 April 2019, led to the recognition of right‑of‑use assets for the Bank’s leased properties valued at $3.0 million. Total Liabilities increased by $80.9 million (1.7 per cent) over the year. The most significant increases in this category were $126.2 million (11.1 per cent) in Currency in Circulation, $96.4 million (73.0 percent) in Participating Government call accounts, $40.5 million (100.0 per cent) in Bankers’ fixed deposits, $35.5 million (16.3 per cent) in Bankers’ Collateral accounts, $19.6 million (121.3 per cent) in Eastern Caribbean Securities Registry account and $18.4 million (21.3 per cent) in Participating Governments’ Operating accounts. These increases were moderated by decreases of $276.6 million (9.5 per cent) in Commercial Banks’ reserve balances and $9.4 million (82.2 per cent) in Organisation of Eastern Caribbean States operating accounts. Total Equity grew by $135.0 million (46.5 per cent) to $425.0 million. The primary contributor to this expansion was an increase of $75.1 million in Unrealised Holding Gain on foreign investment securities, which stemmed from the favourable performance of the US bond market over the financial year. Also strengthening the equity position, was an increase of $61.7 million (39.6 per cent) in General Reserve due to the allocation from net profit in accordance with the ECCB Agreement Act 1983.

Chart 5 - Total Assets (EC$000s)

Chart 6 - Total Liabilities and Equity (EC$000s)

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