ECCB 2017-2018 Annual Report and Statement of Accounts

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ECCB ANNUAL REPORT 2017/2018

Statement of Financial Position As at 31 March 2018, the Bank’s Total Assets stood at $5,088 million, an increase of $116.4 million (2.34 per cent) when compared to the position in the previous year. The increase in Total Assets, reflected mainly by an expansion of $117.9 million (2.55 per cent) in Foreign Reserve Assets, was primarily due to the purchase of regional and foreign currency notes from commercial banks and the reinvestment of interest received on foreign assets. The increase in foreign assets increase was offset by net sale of foreign currency balances to commercial banks in the Eastern Caribbean Currency Union and the depreciation in the market value of the Bank’s foreign investment securities following the unfavourable performance of the US bond market in an increasing interest rate environment. Domestic Assets decreased by $1.5 million (0.43 per cent). The decline was mainly attributable to reductions in Due from Local Banks and Accounts receivables and Prepaid Expenses in comparison to

the prior year. Due from Local Banks reduced by $21.0 million (100 per cent) following the repayment of a loan by a commercial bank under the Lombard credit facility. Accounts Receivable and Prepaid Expenses declined by $3.9 million (13.48 per cent) largely due to a drop in Prepaid Currency Costs, which resulted from expensing of the costs related to currency notes and coins issued during the financial year. Off-setting the decline in the Domestic Assets category were increases in Loans and Receivables – Participating Governments’ Securities, and Property, Plant and Equipment. Loans and Receivables – Participating Government Securities increased by $9.9 million (13.44 per cent) as the Bank discontinued issuing its holdings of participating governments’ Treasury Bills on the secondary Treasury Bill market moderated by principal payments by participating government on debenture bonds. The increase of $9.6m (7.59 per cent) in Property, plant and equipment was primarily as a result of the revaluation of the Bank’s properties as at 31 March 2018.

Total Liabilities expanded by $123.6 million (2.60 per cent) over the year. The most significant increases in

this category were reflected in Currency in Circulation, $95.5 million (9.43 per cent), Eastern Caribbean Securities Registry account, $60.7 million (381 per cent) and Bankers’ Collateral accounts, $41.5 million (21.51 per cent). These increases were tempered by decreases of $83.6 million (2.74 per cent) in Commercial Banks’ Reserve Balances and $54.0 million (29.32 per cent) in Participating Governments’ Call accounts.

Chart 5 - Total Assets (EC$’000)