ECCB 2016/2017 Annual Report

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ECCB ANNUAL REPORT 2016/2017

STATEMENT OF PROFIT OR LOSS The 2016/17 financial year was a year of recovery for the ECCB as the Bank reported a net profit of $6.3 million, an increase of $16.3 million (163.12 per cent) compared to the previous financial year where a net loss of $10.0 million was reported. Operating income for the 2016/17 financial year continued on an upward trend, growing from $61.0 million to $77.5 million, an increase of $16.5 million or 27.07per cent over theprevious year. This performance was largely driven by an increase in interest income on the Bank’s foreign reserve portfolio coupled with

the recognition of income from banking licence fees and penalties. The performance of the Bank’s foreign reserve assets is dependent on the performance of the US economy and the US Treasury market. During the year, there was moderate improvement in interest rates as the Federal Reserve increased the benchmark interest rate in December 2016 and March 2017. This action positively impacted the performance of the Bank’s foreign reserve assets. Additionally, interest income was positively impacted by reforms in the money market fund industry which became effective in October 2016. These reforms led to reduced demand for certain money market funds which resulted in an increase in money market rates.

Chart VII - Net Profit /(Loss) (EC$’000)

Graph IX - Income Mixed FY 2017

Graph X - Income Mixed FY 2016

Chart VIII - Operating Income (EC$’0000)