ECCB 2016/2017 Annual Report

ECCB ANNUAL REPORT 2016/2017

ECCB ANNUAL REPORT 2016/2017

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Net interest income continued to be the largest contributor to operating income and amounted to $55.7 million, or 71.85 per cent of the revenues earned by the Bank, up from $41.9 million (68.72 percent) in the previous financial year. The improvement was mainly attributed to growth in the portfolio of interest earning assets. Interest income from foreign reserve assets grew by $15.2 million or 44.61 per cent primarily due to growth of $434.5 million (41.36 per cent) in money market instruments and $78.8 million (2.77 per cent) in foreign debt securities, when compared to the prior year. Income from banking licence fees and penalties rose by $5.6 million in accordance with the provisions of the Banking Act, 2015. The increase

in operating income was offset by a decrease of $2.5 million in realised gains on disposal of securities as the rise in US Treasury yields during the latter half of the financial year resulted in a decline in bond prices and a reduction in realised gains on the sale of foreign securities. Operating expenses for the 2016/17 financial year totalled of $72.1 million, an increase of $0.1 million or 0.11 per cent over the 2015/16 financial year. The increase was due to upsurges in administrative and general expenses and staff costs of $2.2 million and $1.1 million, respectively. This was offset by a $2.9 million reduction in currency expenses.

Chart XI - Net Interest Income (EC$’000)

Chart XII - Operating Expenses (EC$’000)