ECCB 2014-2015 Annual Report and Statement of Accounts

EASTERN CARIBBEAN CENTRAL BANK

Domestic Assets increased by $7.6 million (1.96 per cent). The significant movements in that category were reported in Accounts Receivable and Prepaid Expenses and; Property, Plant and Equipment. Accounts Receivable and Prepaid Expenses increased by $13.1 million (63.49 per cent) as a result of an increase in prepaid currency costs. Property, Plant and Equipment expanded by $7.9 million (6.30 per cent) due to the revaluation of the Bank’s property in accordance with International Financial Reporting Standards (IFRS). The increase was tempered by a decline of $14.0 million (17.20 per cent) in advances to Participating Governments, as member governments repaid short-term loans during the period. There was also a reduction of $3.7 million (3.52 per cent) in Participating Governments’ Securities. Total Liabilities expanded by $425.1 million (11.59 per cent) over the year. The most significant increases in this category were reported in Commercial Banks’ Reserve balances, $188.3 million, Bankers’ Collateral accounts, $147.6 million, Participating Governments’ Call accounts, $56.8 million and Currency in Circulation, $53.0 million. Total Equity increased by $23.8 million (10.33 per cent), mainly as a result of an increase of $21.5 million in the market value of foreign securities as the US Bond market strengthened over the financial year. There was also an increase of $11.6 million (16.45 per cent) in Revaluation Reserve due to revaluation of the Bank’s property as at 31 March 2015. The effects of these increases were moderated by a decline of $12.0 million (9.48 per cent) in the General Reserve as funds were utilised to cover the Bank’s net loss.

Chart VI shows the movement in consolidated profit/ (loss) for the period 2010 to 2015.

Chart VI

Consolidated Statement of Income or Loss The consolidated net loss for the year under review totalled $12.1 million, a decrease of $5.8 million (32.44 per cent) compared to the previous year’s net loss of $17.9 million. The performance of the Bank’s foreign reserve assets continued to be impacted negatively as international interest rates remained at historical lows. Operating Income for the period under review was $4.9 million (9.42 per cent) more than the previous year. This was mainly attributable to an increase of $7.7 million in realised gains on sale of foreign securities. Also contributing to the reduction in the net loss was a decrease of $1.0 million (1.35 per cent) in Operating Expenses.

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ECCB ANNUAL REPORT 2014/2015