2019-2020 Annual Report and Statement of Accounts

FINANCIAL RESULTS Net interest income contracted by $6.3 million or 6.2 per cent to $95.4 million for the year ended 31 March 2020 when compared to the previous financial year. The decline in net interest income was primarily attributable to a reduction in interest earned on foreign investment securities, which was negatively impacted by the Federal Reserve interest rates cuts during the financial year when compared to the previous financial year. By the end of the ECCB’s financial year ended 31 March 2020, the Federal Reserve had lowered its benchmark interest rate back to the 0 per cent to 0.25 per cent range first enacted during the 2008 financial crisis. The decrease in net interest income was offset by a reduction of $0.6 million or 10.1 per cent in interest expense attributable to a decline in interest expense on interest bearing demand liability accounts.

Operating expenses for the financial year ended 31 March 2020 of $84.6 million grew by $7.3 million or 9.4 per cent over the previous financial year. The growth in operating expenses was largely due to an increase of $4.4 million in salaries, pension and other staff benefits, $1.8 million in administrative and general expenses and $0.9 million in depreciation and amortisation expenses.

Chart 12 - Operating Expenses (EC$000s)

Chart 11 - Net Interest Income (EC$000s)

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